Short Sale Rescind BUT Buyers Sabotage SS so they can by Cheaper
BOA said close at the title company and the file will be rescinded. The eviction attorney’s office informed me the file was closed, the buyers will not get the
3000 cash for keys. The file was closed so due to the Short Sale.
The buyers took possession prior to closing with the contingency of the short sale approval. The seller moved out in order to appease them so he can get his house
sold as a short sale. 9 months later May 5th we get the Short Sale
Approval letter. May 10th the home is foreclosed on. The Buyer
called me (the listing agent) telling and said they gave her these papers. She
said, “They thought I was Sally Falsename or I would have never gotten these
papers.” They do not just walk knock on a door and hand papers over saying here
Sally Falsename, these are for you.”
It is now the 27th of May. We have a short sale approval through June 19th 2009.
The buyers refuse to close or move out. The have never let anyone see the home for back up showings and now they won’t let it be shown nor let Kevin, the home owner in
his own home. They said they have proof that Freddie owns the home. Duh of
course the deed reflects this, why would we have to rescind otherwise!
The buyers are sabotaging us getting another buyer and trying to eat up the time until this Short Sale Approval is expired. They plan on buying directly from Freddie
and save $30,000. This came out of Sally Falsename mouth several times. Supposedly
their lawyer filed an INJUCTION today. And supposedly they have a LEASE as of
today with Freddie Mac. Furthermore the FINGER is being pointed at me. “This is
your fault, you dropped the Ball!” You did not get the foreclosure postponed.”
I said, “Is that right?” Who is saying this?” She is calling (‘THE BROKER” who
is the one who kicks people out and relists the property), The Broker is saying
that. BAO is saying you dropped the ball and your own Broker is saying that!” I
chuckled inside because I already know I have documentation to prove the
request was sent.
I felt smacked in the face because I know it is my fault that this short sale was finally approved because of all my hard work and time. This is my fault because
I was able to get rescind approved! If it was my fault the foreclosure happened
then how come I had all the documents to prove otherwise? It took all that
proof to get the file accepted for rescind. I really feel like she is upset with me because
she figured she could just sue BOA, The Sellers, The Agent (ME), and the company
I work for. All the while working a side deal to get the property for 30,000
dollars less than the contract amount on the short sale by getting it through
Freddie Mac and 3,000 for cash for keys! I received a call today to inform
their agent there will be no such monies as the eviction was stopped and
closed.
The buyers are telling me to prove the rescind as he the papers saying Freddie Mac is the owner of the home, no one is coming in and they will never come in. The seller
handed them a letter to get out of the property due to a clause in the lease
that has been broken. They again laughed and said they are dealing with the
broker and he my seller has no say. The seller then said you called me and said
you were moving. My seller is seeking council in the morning and my broker is
speaking with the attorneys. She is shocked that a judge would allow an injunction
in a short sale and this opens up a huge can of worms.
The short sale clauses are there to protect the seller! If a buyer can file an injunction and force a foreclosure to happen so they can get the home cheaper than this
would be setting a precedent to allow all buyers to do the same, thus negating
the entire purpose of a short sale.
In closing, I share my story with you that how scary it is that a buyer can file an injunction on a short sale in order to buy the property as a foreclosure instead of the
short sale. My goal has is and will be to do my job for the seller. Sell his
home as a short sale in order to avoid a foreclosure that will force him into bankruptcy.
I have been posting about this deal since the Approval /Foreclosure happened. This is the latest update.
Replies to This Discussion
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Permalink Reply by Cici Glaser on
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What on earth was happening that the buyers were allowed to take possession of the property before the transaction closed? This whole thing sounds weird.
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Permalink Reply by Steele V. Propp on
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Help us out here. Is the foreclosure complete or not? If it is your approval means nothing. As usual the two departments were not in contact with each other.
As for the cash for keys offer..that is given to the current occupant. The real estate agent (REO agent) and foreclosure department didn't know who was living there. But it won't really matter.
Of course to get this money these guys have to move out. And if they don't they will be evicted. Bank will normally not even consider a new purchase agreement with someone in the house.
This is a real mess. -
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Permalink Reply by Laurie Clark on
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Yes it is. The SS was approved and then foreclosed on 5 days later even though extensions were requested from the SS Dept to the foreclosure (Lost Mit. Dept). They informed me that we have to close at the title company and then the rescind takes place after closing. The buyers do not want to do the short sale anymore. the want to buy it cheaper now as a REO property. They can not do this until the short sale approval deadline is past. They supposedly filed an injunction but I have yet to see it.
The bottom line is if buyers are allowed to file an injunction on a short sale property this is opening up a huge can of worms. The whole purpose and guidelines of Short Sales are to protect the sellers. If Buyers can just file injunctions and keep the home unsellable to anyone else this is disconcerting to me.
Steele V. Propp said:Help us out here. Is the foreclosure complete or not? If it is your approval means nothing. As usual the two departments were not in contact with each other.
As for the cash for keys offer..that is given to the current occupant. The real estate agent (REO agent) and foreclosure department didn't know who was living there. But it won't really matter.
Of course to get this money these guys have to move out. And if they don't they will be evicted. Bank will normally not even consider a new purchase agreement with someone in the house.
This is a real mess. -
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If the bank has completed the foreclosure process and now own the property I don't see how a short sale can be completed. The buyer and seller contract is void. The seller (former) does not own the property. Not an attorney but don't see how BOA can be saying that they will rescind the foreclosure. It's done. But maybe there is some weird method to this madness.
As for buyers filing an injunction...based on what? Maybe they can claim renter status under the new federal guidelines but that only lasts so long. And the typical REO will then just wait the timeframe to get them out. If they think that they are going to get a deal by this going REO, they need to know that they will not be allowed to stay. House will have to be vacated, then marketed to everyone and they stand a real chance of losing it to another party. They need to have all the possibilities explained to them.
Think the attorneys will need to be on this one. By the way, what state is the property in? -
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I appreciate your input. You brought up some great insights. This has by far been the most complicated and frustrating Short Sale I have ever done. I could write a book on this experience all by itself. I have been doing SS since 2007 and never will any compare.
1. 10 months trying to get approval
2. Submitted file 2 times then a 3rd.
3. They gave an approval with some buyer I never heard of
4.I fought for 3 weeks for them to fix their mistake...did not happen
5.resubmitted the entire file (2 sets of docs per a divorcing occuring)
6.went to negotiator to neg. To neg.
7.then told file was chosen to go to equator system.
8.december Titanium Solutions said they were hired by BOA and work directly with the investors and promised this will be fast. I had to submit the entire file once again because they said waiting to get the docs from BOA would take too long
9. Feb rolls around and we are waiting for final approval. Then all of a sudden communication stops.
10. Titanium no longer has the file. Investor pulled it from them and it went back to BOA
11. I emailed a contact that I save for a rainy day and begged him to help me.
12. He contacts me right away by email saying he had to take a dive into the Fannie and Freddie world as these are not his investors.
13. The same day (early march) I emailed him all the documents
14.Assigned the file to a BOA negotator that works with Freddie
15.less than 2 months I have approval and clear to close
16. The foreclosure extentions were again filed but overlooked. Even with multiple followups
17. 5 days later home is foreclosed on
18. I then went back hard on the file. Stayed up sometimes all night. On the phone every min and found out about how to get a file rescinded after foreclosure.
19.This is a very hard feat to tackle and several times almost gave up but then something that I did along the way would get a response to bring the file back to life.
20. I was able to get the rescind approved (al lot of calls and work)
21. Time to close the short sale at the title company ( this has to be done first. Escrow holds proceeds while the title gets a special warrenty deeding it back to BOA, BOA does the same to put it back in sellers name. Then title company records the closing and the new buyer is recorded in the deed)
22.problem arises buyer refuses to close because they want to buy it cheaper since they saw the price was cheaper than there contract)
23. Buyers are in breach of contract
24. Buyers interfering with sellers getting a new contract by filing an injuction.(the short sale approval Letter states that the final HUD needs 72 hours for approval. That no other buyers can be named on contract without prior approval)
25. I feel 100 percent confident I can get the prior approval based on all the hurdles I have run over.
26. Now at a stand still while my sellers lawyer up to get the buyers injunction removed.
27.Mean while going to market the property to secure a buyer that will keep the same terms of this short sale approval. (It already has been approved with over a 100.000 loss from what the seller owes.
Steele V. Propp said:If the bank has completed the foreclosure process and now own the property I don't see how a short sale can be completed. The buyer and seller contract is void. The seller (former) does not own the property. Not an attorney but don't see how BOA can be saying that they will rescind the foreclosure. It's done. But maybe there is some weird method to this madness.
As for buyers filing an injunction...based on what? Maybe they can claim renter status under the new federal guidelines but that only lasts so long. And the typical REO will then just wait the timeframe to get them out. If they think that they are going to get a deal by this going REO, they need to know that they will not be allowed to stay. House will have to be vacated, then marketed to everyone and they stand a real chance of losing it to another party. They need to have all the possibilities explained to them.
Think the attorneys will need to be on this one. By the way, what state is the property in? -
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