I just had a BofA negotiator tell me that we HAVE to close escrow on our short sale 1 week before the upcoming scheduled trustee sale (Calif) because the investor (Bank of NY Mellon) won't postpone the trustee sale? She says investors are tightening up on this and have stopped granting postponements. Has anyone else run into this?

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I've seen this firsthand. I'm not taking any listing with a sale date anymore unless they're willing to pay the court fees to have the sale postponed.

The sad part of all this is that it's likely the result of all the recent events (homeowners bill of rights, robo-signing settlement) and some homeowners using the SS as a gambit to live in the home free. Servicers need to liquidate non performing loans one way or another despite all the laws and lawsuits.

In other words, the law is helping the unethical at the cost of the homeowners trying to do the right thing.

BOA escalation can often postpone the sale date.

I'm in Palm Springs Valley of California.  I have not had this.  I just closed a Short Sale with B of A first and Chase 2nd lien.  B of A post-poned the close date to get Sale Date moved back very comfortably for the Buyers.  This was just 2 weeks ago?

My job is to list, sell and negotiate short sales. It's an attorney's job to stop or postpone foreclosures.

Katherine, 

I'm in So Cal as well and I've not had a problem lately getting TS postponed.  Granted it may not happen until 15 minutes before the sale, but they've been getting postponed.  All it takes from the Servicer is a simple call to the Trustee and it gets stopped. 

Although this won't help you this year, the California Homeowners Bill of Rights (attached) was signed by Governor Brown and takes effect on January 1, 2013 - this new law prevents "dual-tracking" of foreclosure while a modification / short sale is happening.  I am already seeing servicers working within this new law not yet in effect.

 

If anything, BNY-Mellon is likely trying to get as much closed as possible before the end of their Quarter for reporting purposes.

 

Good luck and keep hounding them for a postponement.

Attachments:

LIkely they are pushing the sale not so much for Quarterly results but so they do not have to reset the clock on current dual track files.

I'm wondering if this happens more in judicial foreclosure states?

I have had 3 Fannie Mae short sales foreclose even when we have ALL CASH offers ready to close the deal. 

I have heard that Fannie now wants to take the homes back and renovate them and sell them for top dollar.

 

I just initated a short sale with Indymac (Fannie investor) and was told that they will not allow a HAFA short sale to be initiated if it is within 60 days of the Trustee Sale date.  This is the first Trustee Sale Date my sellers have had and Indymac will not let them participate in HAFA.  So now I need to get an all cash offer, negotiate and get approval and close it before the sale date in 2 weeks.  Getting the approval letter is what worries me on this.

With the Homeowner Bill of Rights taking effect in January, banks are not allowed to have sale dates during a loan mod and short sale (Dual Tracking).  Let's see if that really happens.

 

The only other way our office has stopped sale dates is by filing something called a Quality Written Review through a law office challenging the docs.  That can postpone a sale date if the bank agrees.  If you want to email me directly I will give you the name of the firm we use.  They are in Southern California.  It costs $1,000 by the way.  You only pay them if they STOP the sale.

We filed the QWR for the 3 homes I mentioned earlier and Fannie still took the homes.

 

Jane Myrenget

Realty World Dominion

[email protected]

 

 

Definately getting interesting out here. I've lost 2 Fannie Mae's this summer that in the past would have been postponed.  I have 4 FNMA in processing right now and all have had unreasonable price counters (way above current market).  All are in the process of the value being challenged.    All 4 have trustee sales within the next 2 months - all with cash offers on them.   These are with 4 different lenders and all of the negotiators have told me that Fannie will not postpone the trustee sales - we have to get them closed.   Would love to get them closed if we could get approvals!

Starting to see an interesting trend also - the Fannie Mae reo properties that are coming on the market way over market.  We just put an offer in on one that started out at $150,000, lowered to $125,000 and then down to $113,900 which is right at market.   Fannie seems to think they can foreclose and put them on the market at unreasonably high values just because our market is improving.   I'm sure the 2 are connected.

I represented the buyer on one that was B of A, not sure who the investor is, but after having a contract waiting for an approval after 3 months the bank said will give approval if you can close in two weeks.  I have an FHA buyer, appraisal hadn't been ordered, inspection wasn't done.  We argued that it couldn't be done and the agent said that if we could show the bank that we were seriously working on getting the loan then they might postpone.  Listing agent offered to pay for appraisal and inspection to show that she had faith the bank would postpone which the buyer would have to reimburse if the bank did postpone.  Bank did postpone for only 30days.  Time is up next Friday and it looks like we will get it closed.

 

No, just had a vacant lot short sale trustee sale postponed for 30 days (this is the 3rd time).  Perhaps it's just YOUR investor?

Katherine bottom line   she's bluffing.  Having worked in a short sale department for over 5 years  I know the games the banks play  I challenge them all the time and with my contacts at B of A I am always successful.  FYI  B of A has delegation on most of Bank of NY Mellon's loan  If you have a valid reason for postponing, such as buyer's lender needed to clear minor conditions it willbe granted.  On the other hand if buyer is having problems getting loan approval then you may not get it.

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