Replies to This Discussion

Permalink Reply by Laurie Clark on June 11, 2010 at 10:05am

Bank of America is the one that has to stop the sale. Email [email protected] make sure you put the loan number, name and address in the subject line. Start with URGENT Please help.
She is dealing with a lot of these trying to get them rescinded after a foreclosure because of this very thing. If you email her and in the content have all of your proof. Attach the short sale approval along with any pertinent information., names or numbers. This will go along way. Good luck to you. I do not know what state you are in but I hope it goes your way. Let us know.

Permalink Reply by Rachel Diedrich on June 11, 2010 at 11:56am

Thank you! I just sent her an email. Wish me luck!


Laurie Clark said:

Bank of America is the one that has to stop the sale. Email [email protected] make sure you put the loan number, name and address in the subject line. Start with URGENT Please help.
She is dealing with a lot of these trying to get them rescinded after a foreclosure because of this very thing. If you email her and in the content have all of your proof. Attach the short sale approval along with any pertinent information., names or numbers. This will go along way. Good luck to you. I do not know what state you are in but I hope it goes your way. Let us know.

Permalink Reply by Cynthia Robbins on June 12, 2010 at 6:04pm

file a chapter 13 bankruptcy. the sale will stop.

Permalink Reply by Laurie Clark on June 12, 2010 at 6:34pm

Very true. I have 2 clients doing this with short sales serviced by Wachovia. They won't stop the foreclosure on home that they denied loan modifications on but offered a preapprove short sale instead. Problem they do not even give you 30 days to get a contract and also it has to be approved after you get an offer or it will not stop the foreclosure. Wow.

Cynthia Robbins said:

file a chapter 13 bankruptcy. the sale will stop.

Permalink Reply by Esther M. Camarotte on June 13, 2010 at 12:18am

Well, Fannie has to okay the stop of the Foreclosure before BoA will stop it so you still have to call Fannie and it takes them 48 to 72 hours to get it done. So call Fannie's 800# and they will escalate. As for filing Bankruptcy, yes you will stop the foreclosure but you will not be able to sell the home and the bank will not talk any further about the sale. You will have to go to the trustee for permission to sell the home and that is a touch and go as there is no gurantee that would happen.

Permalink Reply by Rachel Diedrich on June 13, 2010 at 3:01am

Thanks everyone. I did ask BoA what they would do if the owner files BK and the foreclosure is postponed -- would they give me another week to get the deal closed?..... They said they would not be able to go forward with any short sale discussions once the seller files chapter 13. Has any one had any experience doing this? Thanks again!

Permalink Reply by Esther M. Camarotte on June 13, 2010 at 3:19am

Once in bankruptcy YOU MUST GO THRU THE TRUSTEE no exceptions and that has to be done when the client goes to court, no trustee will speak to you before. This can take weeks or months to do depending on the court calendar.

Permalink Reply by Laurie Clark on June 13, 2010 at 8:31am

I did one this way with a client in BK during a Short Sale. His lawyer had to get a letter from the trustee of the BK to allow to allow the short sale, this letter has to go to BofA so they will approve it.
BofA wants letter first from BK before they approve the Short Sale. It was a nightmare. It's like the chicken or the egg. Finally I had escalated the file so that we could get what we needed from BofA to the courts.
BofA has to give the approval and terms to BK Trustee before anything will get approved.

You are so close I would fight to get this extension done so you can close. Either way this is a huge hassle too, My client had no choice to file BK. he wanted to wait for the short sale to close first but it took to long to get done (11 months). Good Luck my fellow Short Sale Super Star.

Permalink Reply by Cynthia Robbins on June 13, 2010 at 8:55am

the question was what miracle will stop a foreclosure sale? I suggested Bankruptcy. That is the miracle. and you will get BOA's attention. wouldn't that be nice. I did not say that it was the cheapest way to handle the BOA but it is a viable alternative. you mentioned it could take weeks or months, well BOA will not push back the sale date and I bet it took weeks or months to secure an approval. 6 of 1, half a dozen of another. the client has to be made aware of all options available to them. Bankruptcy is one of them.

Permalink Reply by Paola Martinsen on June 13, 2010 at 10:52am

The BK option is to be used as a last resource. Have the client file BK and not present all the paperwork so the BK gets dismissed. That way they have a case# which will automatically stop the sale. Note: once you have a case number you must call the foreclosing attorney and let the know you are calling to notify them your client has filed BK. And then 2 weeks later the case gets dismissed and everything is back where it used to be. If they actually go through the BK in a chapter 7 they must obtain the notice of abandonment or the BK has to be discharged which usually takes 3 months or more. Or in a chapter 13 there must be a court date which usually takes about 30 days to get and then the judge signs the permission to sell the home and approves the payoff to the bank, commission amount, etc. This may vary according to the state. This is for the state of Utah, i am not an attorney, this is only from my professional experience.

Permalink Reply by Rachel Diedrich on June 13, 2010 at 12:12pm

Thanks Paula,

So if they file BK, but it then gets dismissed, what's happens with Boa? Once it is dismissed, do we start over again in Equator? What will happen? Thanks again!!

Paola Lopez De Armentia said:

The BK option is to be used as a last resource. Have the client file BK and not present all the paperwork so the BK gets dismissed. That way they have a case# which will automatically stop the sale. Note: once you have a case number you must call the foreclosing attorney and let the know you are calling to notify them your client has filed BK. And then 2 weeks later the case gets dismissed and everything is back where it used to be. If they actually go through the BK in a chapter 7 they must obtain the notice of abandonment or the BK has to be discharged which usually takes 3 months or more. Or in a chapter 13 there must be a court date which usually takes about 30 days to get and then the judge signs the permission to sell the home and approves the payoff to the bank, commission amount, etc. This may vary according to the state. This is for the state of Utah, i am not an attorney, this is only from my professional experience.

Permalink Reply by Paola Martinsen on June 13, 2010 at 12:26pm

Actually the foreclosure department will be aware of the BK and it takes a while for SS support to be aware of it. Dont tell the short sale department about the bk so that it goes unnoticed, it will move forward as normal until the negotiator realized about the BK, at wich point you will need to wait until the BK is dismissed before they can move forward. This is in the case you were just filing to stall and not go forward with the Bk. Hope this helps. Let me know if you still have questions.

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