Seller Forced into foreclosure with high Fannie Mae pay off

I have a property in Oakdale that only 170,000 was owed. The servicer  added attorney fees and processing fees that took it way up.. it was a short sale with squatters in it. It took me 4 months to get them out, of which I paid. the bank said they would take 159,000.. but when we got an offer for 159,000.. they countered with 184,000.. then when we got an offer for 184,000.. they countered at 201,000.. This house is not  livable, flooring all gone, stove damaged, dishwasher damaged, master bathroom damaged. roof leak.. all landscaping destroyed by unwanted tenants animals. They have for the past year made verbal promises on speaker phone in front of seller and another agent of what it would take to close, then when we finally get that offer they raise it. They finally contacted the seller ask him to sign a deed in lieu.. They informed him that a deed in lieu does not appear on his credit. He decided not to accept the deed in lieu, so it is going to foreclosure. Ocwen is the servicing bank.. This is the only short sale I have not closed.

 

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Comment by Kathy Smiley on February 7, 2014 at 10:52am

Linda, I see. Yes, if B of A won't put it in writing regarding Money for cash for keys, and if they are not documenting what is being done on Equator, the seller is probably wise to assume that.

Comment by Linda Kemppainen on February 7, 2014 at 10:14am

I have another short sale that the Servicer ( Seterus) came back with a 35,000 inflated value. I contacted Fannie Mae directly and sent comps requested two appeals and was able to get it reduced by 19,000.. Not sure it will appraise, but will cross that bridge when we reach it. This home has several issues, and can only go Cash or conventional.. When all is said and done, I would like to know where the value comes from, especially when there are no comps to support it.

Comment by Linda Kemppainen on February 7, 2014 at 10:07am

Kathy, the seller felt that it was just another lie. The Servicer told him that Deed in Lieu's are not reflected on his credit, but when he checked, he found out different. The Servicer promised him money, but when he asked when they would give him the money they were vague. Stated that only if there were no other outstanding liens.. He just didn't trust them.

Comment by Kathy Smiley on February 7, 2014 at 8:46am

Linda - I'm curious. Considering this seems to be hitting a brick wall, why didn't the seller accept the deed-in-lieu? 

Comment by Ellen Dittman on February 7, 2014 at 8:14am

Linda, I have a similar situation. Condition issues so severe that a 203k cannot be done. Cash only. The lienholder in our case did s similar stunt with regard to the numbers you stated. Only our #'s were 188, 199, 210, and 225

Comment by Linda Kemppainen on February 6, 2014 at 9:45am

I closed a short sale last year on a VA loan with Flagstar. The sellers pay off was 168,000.. Flagstar stated that due to attorney fee's, and other costs related to the pay off the lowest they could take was 201,000.. We got their price, and closed. Then VA contacted the seller and asked why it was a short sale. When we told them they said they wanted to file a complaint against Flagstar, as their was no reason for a short sale. Flagstar held us up 6 months in the short sale processes, on continuous lost or misfiled papers. The VA should not have a short sale on his record if the payoff is more than owed.  

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