Yes, that's right, I already had the approval letter in hand and everyone was proceeding to the close date. The buyer did their inspection and was ready to move forward. No indication of trouble in Bank of America/Fannie Mae paradise. Today via equator, I get an message with a denial letter attached. It was denied because it failed Quality Review. I called the customer service dept and there were no other notes except for that nondescript blurb. The CSR also confirmed that the short sale had been cancelled in equator. I sent a note to the negotiator, but haven't gotten a response yet, if I ever will. Has this happened to others or am I just the lucky one. By the way, the buyer was paying higher than market value for the property which was in lousy condition, but since FM doesn't consider repairs in their highly inflated prices, the buyer was paying more than he should. FM is destroying short sales left and right. Comments, insights, and sage advice is welcome and appreciated.
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Wells Fargo got me. Approved short sale with 30 days left until end of redemption period. 2 weeks before closing, a denial comes back from Wells stating HUD pulled the plug on the sale because there was not enough time to process it. HUD said the denial didn't come from them. HUD case opened. Wells wouldn't budge. The day the redemption expired HUD comes back and says Wells made a mistake and denied it based on lack of proceeds. Too bad they mixed up a file and were reviewing the numbers for someone else's short sale! Our funds were fine. Too late though. Redemption expired, foreclosure complete. Something stinks really bad!!
Hi Jim,
Insider here.....I would have the homeowner hire an attorney and pursue legal action. Good luck!
Insider here......Most likely it was transferred to a new service provider in which case you need to start the process all over again. Have your sellers received a good bye letter from BofA? Have your sellers received a hello letter from the new service provide? Have your sellers check their mail. Good luck!
Jana Reves had the same answer as I would be writing. If it was sold the company that purchased it can refuse it and send it back to BofA. Then they will allow you to close. Ask the seller if he received andy thing in the mail stating it was being sold. Bet they did an never opened the letter.
If it's FNMA, it likely has not been "sold" - but just "service released" to another servicer such as Nationstar. And yes, the borrower is required (by law) to be notified by BOTH BANA (goodbye letter) and Nationstar (hello letter).
Insider here...
FYI.....FNMAE is mandating the sale of HUNDREDS OF THOUSANDS....of BoFA files to their TOP service providers, because we are getting the job done. Good luck ALL!
Yes...you are correct Thom "service released" NO SALE...
Mike if you have received an approval letter then the file is with the Closer (in Arizona). Just contact them or their manager and they will resolve it . That approval letter is a legal document.Unless they have a valid reason, such as they discovered it is not an arms length transaction or document signature issue, then they must abide by the terms stated in the letter
If it's FNMA and you think the servicer changed - look it up on the FNMA loan lookup tool. You may find it has changed.
It seems to me there is another Class Action Lawsuit here. If everyone is proceeding based on a written approval already issued, and the buyer is spending money on inspections, appraisals, etc. and subsequently the approval is reversed for anything other than fraud, how many lives can FNMA / BANA demolish before someone steps in.
I suggest you find out the absolute reason it was subsequently denied and if nothing other than a change in servicing, contact your local congressperson and the media.
Maybe, we need to get the media reading SSS for their weekly stories about the housing market!
Yeah....I agree Thom....Media attention and reaching out to your local congressperson, state rep, and senator seems too usually light a fire under their butts!
Mike, sounds like they are not providing you with the full reason. "Failing Quality Review" with no explanation as to how it can be submitted to "Pass" Quality Review? Can we say "Failure to Communicate?"... This happened to me with B of A. I had a home owner with a large property tax lien. B of A was refusing to pay the delinquent taxes and lien. Yet they were not going to allow the buyer to bring in the additional money to escrow to satisfy the lien. Mind you, they had already countered on the price and had our acceptance. So, catch 22... We ended up starting the whole process over, got a different negotiator and team. During the resubmission process, B of A ended up actually PAYING ALL the delinquent taxes and we finally closed 8 months after we started! Sounds like you ae going to have to start over with this one. Good luck!
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