My Freddie Mac Short Sale with BofA got to the negotiator and was suddenly canceled for 'non compliance.' After a few phone calls, I was told that someone went to the property and no one was there, so they canceled the sale. The owner has to relocate for her job, BofA has her new address, I noted the situation on my cover letter, it's mentioned in the owner's hardship letter. Does anyone have experience with this kind of thing? What do I need to to the get the file moving again? 

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I understand that one of the rules for BofA short sales is that the house cannot be unoccupied. I don't know why they have this rule or if it can be waived. Did the owner take the furniture?
A Good 1/3 of our Short Sales are B of A loans. Usually when we have gotten nicked for "non compliance" it was the result of the house being FHA insured, and failing to meet the requirements for entry of the PFS guidelines. Do you know if this is FHA insured? If so, you can call your FHA regional office and get them involved to facilitate.
Michael,
Thank you for the information. This particular loan is Freddie Mac, not FHA.

Matthew Smith said:
A Good 1/3 of our Short Sales are B of A loans. Usually when we have gotten nicked for "non compliance" it was the result of the house being FHA insured, and failing to meet the requirements for entry of the PFS guidelines. Do you know if this is FHA insured? If so, you can call your FHA regional office and get them involved to facilitate.
I wonder if it has to do with the new HAMP guidelines. Although they don't do into effect until April, certain servicers are allowed to participate early.
Re send your entire package again as if you're starting over. If you're on Equator, just "initiate short sale" again.

I just did this recently on a file and we're going back through the motions again. Mine was due to the seller not being reachable and the file got canceled.
A bank has the right to secure their collateral. An unoccupied property invites squatters, vandalism and generally no upkeeping of the property. So, they will go in and change locks, drain hot water heaters, etc.

I have my sellers put a 3 x 5 card on the doors stating:

"This is the legal domicile of 'John Doe' - Do Not Trepass"

Only do this if the property is very close to being approved or the seller just had to relocate, etc. Sometimes during the negotiation, the seller has to relocate to find a job, or be near family, etc. Its in the banks best interest to close escrow as soon as possible to avoid a situation of squatters, unkempt properties, green pools, etc. Get the deal closed and mitigate the losses sooner rather than later in a declining market.

If the seller can keep the utilities on, it is proof of a legal domicile.

Otherwise, an unoccupied property invites a cancelation of contract and will be turned into an REO, eventually.
Thanks for the info. I will put a note on the door. Meanwhile, I asked the negotiator not to cancel and she move it to Titanium.
Kathleen, Why did she move it to Titanium? Did she tell you why?

Kathleen Sheridan said:
Thanks for the info. I will put a note on the door. Meanwhile, I asked the negotiator not to cancel and she move it to Titanium.
No she didn't tell me why. Moving onward, Titanium initially said that they hadn't received the whole file yet. The next day they said that there was no short sale with the file. Back to the BofA short sale dept, where they were contrite about the negotiator canceling the file and told me to submit it again. Which I have done.



Makoto Sato said:
Kathleen, Why did she move it to Titanium? Did she tell you why?

Kathleen Sheridan said:
Thanks for the info. I will put a note on the door. Meanwhile, I asked the negotiator not to cancel and she move it to Titanium.
Titanium is an independent company that I've been told has a contract with the federal government under the new guidelines that turns in a report to the bank after they have contacted homeowner (3 times in person) to ask 7 questions to determine, occupancy and if a loan mod is a possibility. These are real estate agents getting paid a fee just like a bpo hoping to get the listing if a loan mod is not possible or has failed. Titanium has an agreement with many banks to handle this process. It's very possible since your clients were out of state and unreachable they were considered uncooperative and the file closed for that reason. Call and ask to speak to the previous negotiators supervisor or their managing supervisor to get an exception to their policy. Submit the file again and give them the homeowners contact information so Titanium can contact them personally and file their report...although I think this has to be done in person you may get an exception for work out of town. Let me know if you find out anything different....Good Luck
Thank you for the insights.

Laura Baron said:
Titanium is an independent company that I've been told has a contract with the federal government under the new guidelines that turns in a report to the bank after they have contacted homeowner (3 times in person) to ask 7 questions to determine, occupancy and if a loan mod is a possibility. These are real estate agents getting paid a fee just like a bpo hoping to get the listing if a loan mod is not possible or has failed. Titanium has an agreement with many banks to handle this process. It's very possible since your clients were out of state and unreachable they were considered uncooperative and the file closed for that reason. Call and ask to speak to the previous negotiators supervisor or their managing supervisor to get an exception to their policy. Submit the file again and give them the homeowners contact information so Titanium can contact them personally and file their report...although I think this has to be done in person you may get an exception for work out of town. Let me know if you find out anything different....Good Luck

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