Hello all, I have been reading posts on here for a while and I thought I'd post on my situation to see if you think I am wasting my time and should move on or if I should stick it out.

 

I am the buyer.

 

Short sale with 2 loans. 1st with Flagstar 2nd with Penfed.

If you base the value on the outstanding principal it is nearly a wash for Flagstar but with unpaid interest and other fees the judgement is nearly 100k over the selling price. Penfed has an unknown amount left but the original was $65k.

 

I entered into the contract on 10/7. The package was submitted shortly thereafter. On 11/15 there was a court date in which the foreclosure sales date was set for 3/12/13, however the Judge ordered Flagstar to APPROVE the short sale within 60 days or it would go to mediation. (it seems to me the court does not want this to foreclose).

 

As of today a negotiator has not been assigned and a BPO has not been ordered.

 

Based on what I've read it seems that Flagstar may be less reasonable than other banks, so my question is, do you think Flagstar will do anything with it or are they just stalling so it can go to foreclosure auction?

 

I just don't want to wait this thing out only to see it go to auction, meanwhile I've lost time, market advantage, and/or interest rates. To add to the situation my wife is due in June and I'd like to be in and settled by then.

 

Throughout all of this my Realtor has been great, she follows up with the sellers realtor and attorney often.

 

Thoughts?

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Also, I haven't heard of a SS going to mediation, anyone know anything about this?

 

I am in FL in case that matters too.

I'm in Fl too.  The judge didn't mean the "short sale" aspect would go to mediation.  Judges will order mediation, as a matter of course, for the foreclosure case.  The defendant has a right to mediation.  The judge is saying that if the short sale is not approved, it will be back to just a forclosure case, which he reigns over, and mediation will then be required.

Forgot to add..almost two months is a ridiculous time, if complete package was submitted, without a negotiator/BPO.  I don't know if this is all on Flagstar, or maybe the "attorney" if they are the ones doing the negotiations.  Could be an attorney office over loaded with files?

To my knowledge there are no negotiations that have taken place yet. According to the information that I've been given the paralegal calls several times a week and the status is still "unassgined" at Flagstar.

 

Thank you for the information on mediation.

I haven't dealt with Flagstar, but it's possible.

I have only been involved with one Flagstar short sale and it was an uphill battle all the way. You MUST send updated financials as they become available or they will close the file. This of course is on the diligence of the seller side of transaction. Follow up follow up follow up. I had to call at least twice a week for almost 4 months to keep make sure things kept moving! Good Luck!

I have  2 shortsales right now with Flagstar.  Like other's have said, you have to be very diligent with them.  Also, once you notify them of the shortsale, you get a person who is called "your single point of contact".  They review the paperwork before it goes to the negotiator.  I call about 3x a week

I had a short sale with Flagstar that I tried to get approved for one full year. There was always some delay or something. Never could get any progress made even after going to the V.P. for Loss Mitigation. Flagstar bought the mortgage at the sherriff's sale in MN for $329K when the borrower only owed $189K. In MN, any excess proceeds are due to the borrower. Turns out Flagstar is so inept that they had to vacate the sherriffs sale and go through the foreclosure process all over. 2 years after the initial offer, the property finally went on the market in Sept. Current pricing is $128K. There was something very fishy about this whole deal. It must be more profitable to let it go to foreclosure. Forget a short sale with Flagstar. They don't want it to happen.

 

Sue Coulter, [email protected]

Edina Realty, Crosslake, MN

Short sale is time consuming.  Don't do short sale.  If you have SS in FL, VA call me.  We have a program that pay 7% commission for real estate agent for your dead short sale/short sale. 

email me for more information on our program

[email protected]

Thank you

www.wesavehouse.com

Flagstar usually has a 1st level negotiator, who collects and reviews the documents submitted, within a week to 10 days of receiving a FULL package.  A FULL package includes pay stubs and bank statements that are no more than 30 days old.  The seller's agent and attorney need to make sure to submit updated financial information as soon as it is available, continuously throughout the negotiations.  The BPO and actual negotiator are not assigned until the documentation is determined to be complete.  Unfortunately, as the buyer, you are at the mercy of the competency of the listing agent and their attorney / negotiator.  Good luck. 

Short sale is time consuming.  Don't do short sale.  If you have SS in FL, VA call me.  We have a program that pay 7% commission for real estate agent for your dead short sale/short sale. 

email me for more information on our program

[email protected]

Thank you

www.wesavehouse.com

Picking your agent is like picking a doctor. My advice is ASK YOUR AGENT what the steps are. Here in Las Vegas we have safeguards...if a judge ORDERED (as you say above) then this is a requirement. Judges are also see AFTER mediation...if there is no conclusion to mediation. So...my guess is that your misinterpreting something. Question your agent...let him/her be your guide.

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