Foreclosure Postponement Denied Just Now!!!
Well, after fighting the HAFA runaround for over 3 months with Bank of America and then getting the Equator delay runaraound with Bank of America.....I have just been informed we lost the battle. Even though I have a qualified offer and we are only off by $5,000!! Bank of America is telling me it's Fannie Mae's(investor) decision and that it is final. I even took it to the office of the CEO. No game!
I am so frustrated with Bank of America! I have done countless amounts of short sale closings with them over the past 3 years. Every deal has been different. Every single one of them! There is no rhyme or reason to how they react. They just told me that Fannie Mae turned us down because the seller had not made a payment in 12 months! What? I just closed 5 short sales with Bank of America in the past 5 months where Fannie Mae was the investor. The shortest no-payment timeline was 10 months and the longest was 24 months! Now does that make any sense????
The offer that was given to Bank of America and Fannie Mae was at a $5000 difference that we probably would have been able to overcome. So now another home goes to foreclosure even though there was a willing buyer and a willing seller (willing to give cash at closing). Bank of America made my seller go through the HAFA process which took 3 months in order to receive a denial! Even when she received the denial and we started the standard short sale, B of A was still trying to get her to do a HAFA short sale! Clearly, Bank of America was not even following the HAFA guidelines to begin with which will be another issue pursued.
We lost a buyer during this process, and I had 2 others on the line as of yesterday. But....now this home will be headed to auction with a minimum bid of over $368k and the market value is around $340k. The kicker.....the offer submitted in the 1st place was $350k (buyers walked) and the offer that Fannie Mae just denied is $320k!!!! This home will be sold for around $300k or less in the open market as an REO now. But Bank of America will get their money as will Fannie Mae. Meanwhile the surrounding homeowners will be punished because of this idiotic decision.
I am taking this file to the attorney general and department of financial institutions here in Washington State. We have a lot of Bank of America complaints here in this state, and it's just perplexing that Fannie Mae (our tax dollar) is blatently adding to our financial situation. Talk about the "Fleecing of America"!
Want to know something else? This neighborhood where this home is located, has over 7 other sellers needing to sell that also have Bank of America loans. These sellers have reached out to me to help sell their homes and now this home will become a comparable for all of those. Out of those 7 sellers, 5 are Fannie Mae owned. Talk about the trickle down effect of making a badly informed decision! Yep, our tax dollars at work.
Have a wonderful weekend to all you Short Sale Superstars!
Replies to This Discussion
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Permalink Reply by Kevin - Greenville, SC on
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Shannon,
Have you escalated to Fannie or just within BOA? Also, you might want to try the FHFA http://www.fhfa.gov/ who has oversight over Fannie.
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Also, if you feel the were incorrectly denied HAFA -
The escalation process for HAFA is easy and effective and works with all lenders.
Email: [email protected]
Include:
Borrower's Name
Property Address
Loan Number
Authorization to Speak Form (you need to give them authorization to speak with the lender - meaning the home owner AND they need authorization to speak to you)
Give them a time line and details of the problem
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Permalink Reply by Brenda Houghton on
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Shannon, who told you Fannie Mae denied the postponement? I recently had a negotiator tell me Freddie Mac denied a postponement because the file was not in closing. I did not believe her because I had a number of other Freddie Mac's not in closing, and they were all granted postponements. I also escalated to the office of the president, and all they did was read the negotiator's notes!! I escalated it again, got it assigned to a senior escalation negotiator, and lo and behold, the foreclosure was postponed.
When is the sale? I would try escalating again. Also try the BoA twitter help: @BoA_help. They have been MOST helpful in immediate, useful assistance (as opposed to the placating kind offered first by the office of the president). Good luck, and BTW - I agree with your assessment of this financial mess at the hand of our government via our tax $$'s!
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Permalink Reply by Heather Robins on
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BofA, Fannie Mae is pushing their short sales HARD right now to auction. They gave me the same excuse but literally that month a year ago is when he quit making payments. Did your state do the Moratorium last fall? I believe that is why ours is. We had one with an offer of 115K, they took it to sale they are already down to 110K and keep dropping, the property looks horrible without my staging:).
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Permalink Reply by Shannon Renner on
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Hi all and thanks for the advice. Unfortunately the home's T. Sale is today and I have exhausted all efforts.
@ Kevin~ We did escalate the HAFA aproval, but it was not the decision that was the issue it was the timeline and then the lack of proper informing to the seller. It took AMS 3 months and then they still never sent us proper denial notification. 3 months! In that time, B of A refused to look at the offer that I had and everyone I escalated it to said that I had to go through AMS. Once we were denied, we started the Equator process with that offer and had an approval from B of A within 4 weeks. Those buyers walked because they had actually made their offer in January. The approval was late April. It took B of A over 5 days to get that offer out of Equator even after calling them 2 times a day to get it out so I could start a new offer. It was ridiculous and I have never had that happen before, and I have done over 30 B of A short sales. It was crazy....like they were stalling or something. So I escalated it up this last Monday and they said the offer was too low so the buyers came up to $320k. Fannie Mae wanted a net of $396k and we were at $392k as of last night. I escalated to office of the CEO and had 3 different people working on it all day yesterday and everyone came back this morning stating that Fannie Mae denied the offer because my seller had not made a payment in 12 months! That was their sole reason according to B of A. I could not get anyone to reach at Fannie Mae to help. Everyone stated that whatever B of A said is the final decision. I did try the FHFA and spoke with Peter Brerenton (Director of Congressional Relations) and he has aksed me to file a complaint. There is nothing he can do nor can their organization do. He said he had not heard of the "12 month delinquent rule" and agreed that this may be a tactic by B of A and not Fannie Mae.
@Brenda~ The Twitter help is a great tool and that is how I got everyone yesterday. You are right about the office of the President. They could care less and keep saying...their hands are tied!
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Wow, Heather, that is crazy! Does anyone know why there is such a hard push for these to foreclose so fast?
Heather Robins said:BofA, Fannie Mae is pushing their short sales HARD right now to auction. They gave me the same excuse but literally that month a year ago is when he quit making payments. Did your state do the Moratorium last fall? I believe that is why ours is. We had one with an offer of 115K, they took it to sale they are already down to 110K and keep dropping, the property looks horrible without my staging:).
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Here is Fannie Mae Servicer guide - https://www.efanniemae.com/sf/guides/ssg/svcg/svc042810.pdf Chapter 6 Discusses Foreclosure Alternatives and how this is to be addressed by the Servicer (BOA in this case).
I have personally closed several Fannie Mae Short Sales with the homeowner well over 12 months past due.
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Thanks, Kevin. You are great! I know I have also closed several deals that have been well over 12 months.
Kevin M. Lancaster - Willson said:Here is Fannie Mae Servicer guide - https://www.efanniemae.com/sf/guides/ssg/svcg/svc042810.pdf Chapter 6 Discusses Foreclosure Alternatives and how this is to be addressed by the Servicer (BOA in this case).
I have personally closed several Fannie Mae Short Sales with the homeowner well over 12 months past due.
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