Replies to This Discussion

Permalink Reply by joe beauchamp on September 16, 2010 at 3:26am

Fannie Mae took a harder line a month or so ago (I lost a house) with postponements. I heard yesterday that after months of promises for a postponement from Freddie Mac directly, they reneged. No more postponements. You will need to plead an extremely heavy case with Fannie Mae, I suspect, in order to get them to budge. It is a political thing. They are tired of banks sitting around on dead accounts.

I'd say at this point, the odds are that if you cannot close by 9/21, the house is gone. However, I learned from one MI person that you can still process the short sale during the redemption period, so depending upon the state/county, that might give you some extra time. Also, you might be able to get a local judge to extend the period for you - not sure - I have personally done that for the sheriff sale, but not recently (and you need a lawyer for that).

So far as bad BPO's go, I probably get them 10 to 20% of the time and the bank is sure that they are correct because they come from "bank employees" and you are just another scamming realtor finding uneven comps, etc. An accredited appraisal does carry weight. Also, what you suggested should work and was actually recommended by a BofA negotiator - that is go ahead with the higher number and then when the buyer's loan company comes back with a lower appraisal, shove that in their faces. However, by then, the house will be gone.

The majority of expense of the foreclosure has already been spent by the bank and it usually or always costs them more to postpone. It's an uphill battle.

My guess is that you will not be able to both get a satisfactory number for the sale and do it in time to avoid the sheriff sale.

A very long shot would be to appeal to the attorney who is putting it in for sheriff sale...

I need to go back and look at my stats - too lazy. I'd say, since I almost exclusively do BofA files right now, that 10% to 20% of my files die because the buyer walks while waiting for BofA to process. Probably 25% to 35% are in that category or get another buyer or two while each waits for BofA to do their thing. Not at all unusual. I cannot say how many actually close and have lost a buyer previously. Your complaints fit in.

Assuming this goes down the tube (and you might try to argue this with the bank and fannie mae - it isn't clear to me who has the most control over the postponement - each claims the other with BofA), you can talk to them (I guess the bank?) about how the seller is going to sue them for forcing him into foreclosure when he had a buyer long before. The bank's delays and negligence, possibly purposely, have done great damage to the seller when he did what the bank suggested, had a buyer in PLENTY of time but the bank delayed to the point that there was a sheriff sale and then refused to postpone it after they created this situation so harmful to the financial health of the seller. Get names, escalate, make sure you talk to people of authority, they often listen, and you will no doubt run across actions from the bank which are criminal, violate truth in lending, etc. and should tell them that their names are going to the D.A for criminal prosecution. ETC.

Good luck!

Permalink Reply by Charlotte Lloyd on September 16, 2010 at 5:01am

Thank you for your help. We will see what happens. Very frustrating!

joe beauchamp said:

Fannie Mae took a harder line a month or so ago (I lost a house) with postponements. I heard yesterday that after months of promises for a postponement from Freddie Mac directly, they reneged. No more postponements. You will need to plead an extremely heavy case with Fannie Mae, I suspect, in order to get them to budge. It is a political thing. They are tired of banks sitting around on dead accounts.

I'd say at this point, the odds are that if you cannot close by 9/21, the house is gone. However, I learned from one MI person that you can still process the short sale during the redemption period, so depending upon the state/county, that might give you some extra time. Also, you might be able to get a local judge to extend the period for you - not sure - I have personally done that for the sheriff sale, but not recently (and you need a lawyer for that).

So far as bad BPO's go, I probably get them 10 to 20% of the time and the bank is sure that they are correct because they come from "bank employees" and you are just another scamming realtor finding uneven comps, etc. An accredited appraisal does carry weight. Also, what you suggested should work and was actually recommended by a BofA negotiator - that is go ahead with the higher number and then when the buyer's loan company comes back with a lower appraisal, shove that in their faces. However, by then, the house will be gone.

The majority of expense of the foreclosure has already been spent by the bank and it usually or always costs them more to postpone. It's an uphill battle.

My guess is that you will not be able to both get a satisfactory number for the sale and do it in time to avoid the sheriff sale.

A very long shot would be to appeal to the attorney who is putting it in for sheriff sale...

I need to go back and look at my stats - too lazy. I'd say, since I almost exclusively do BofA files right now, that 10% to 20% of my files die because the buyer walks while waiting for BofA to process. Probably 25% to 35% are in that category or get another buyer or two while each waits for BofA to do their thing. Not at all unusual. I cannot say how many actually close and have lost a buyer previously. Your complaints fit in.

Assuming this goes down the tube (and you might try to argue this with the bank and fannie mae - it isn't clear to me who has the most control over the postponement - each claims the other with BofA), you can talk to them (I guess the bank?) about how the seller is going to sue them for forcing him into foreclosure when he had a buyer long before. The bank's delays and negligence, possibly purposely, have done great damage to the seller when he did what the bank suggested, had a buyer in PLENTY of time but the bank delayed to the point that there was a sheriff sale and then refused to postpone it after they created this situation so harmful to the financial health of the seller. Get names, escalate, make sure you talk to people of authority, they often listen, and you will no doubt run across actions from the bank which are criminal, violate truth in lending, etc. and should tell them that their names are going to the D.A for criminal prosecution. ETC.

Good luck!