NationStar forecloses when I was a few days away from Short Sale approval
I was working on a NationStar short sale for just about a year. We were about 5 days away from an approval letter said my negotiator. Then I get a voicemail - sorry, it went to foreclosure sale yesterday. SAY WHAT?! My Sellers had moved to Puerto Rico. Despite forwarding mail, they never got a notice that a sale date had been set, or any other paperwork from NationStar. Sure enough, it sold on courthouse steps. Don't ask me why the judge or attorney didn't stall the sale date when we had a short sale set to be approved. I had no idea it was even close to the point of sale because my Sellers said they hadn't gotten anything by mail. I spoke to an attorney about wrongful foreclosure after the fact and he said the Sellers could pursue it but at this point, they no longer care and just want to be done with it. So there goes a year of my working on it. If I had known a sale date were set, I would have gone and pleaded with the judge on their behalf. I've done it before and it works.
Moral of the story, even if you don't THINK your short sale file is anywhere near to having a sale date set, check the court records often because it just might sneak up on you. Very sad, this is my first short sale in 7 years of doing them that went to foreclosure, and it took them less than a year to foreclose which is shocking for Florida - usually they take much longer. Very upset with NationStar.
Replies to This Discussion
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Permalink Reply by joe beauchamp on
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2 things: As I learned from a nice MI person years ago (do you believe that some are??), you can continue the short sale during the redemption period for the homeowner. These vary from 0 days to weeks depending upon state/county. It would seem that if your short sale offered more than the sheriff sale, you'd have a good leg up. Second, I haven't thought about this much, but my broker sends in change of address and phone to the banks as soon as we get a short sale. Then all important calls/mail come to us instead of into the homeowner's trash, etc. Not useful to you now, but next time.
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Permalink Reply by Liane Jamason on
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Interesting that you can continue the short sale. Well as I said my Sellers are just over it so doesn't do me any good this time, but good to know... Thanks.
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Permalink Reply by Mark Sanner on
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Never EVER rely on clients to keep you informed regarding the status of a foreclosure. I view staying on top of the foreclosure is part of my job as the short sale agent. I've got the judicial search site for my state bookmarked and check it weekly, sometimes more frequently, for all my short sales.
For one of my short sales, we've postponed the foreclosure twice (extended the law day), only because I knew about the approaching law day, got an attorney to write a motion, got the seller to sign it with notarization, and return it to me in time to file it with the court. Seller now lives in another state.
I attached evidence to the motions showing that we were making progress on the short sale. The first motion included the signed purchase and sale agreement. The second motion included the contract, proof that both junior lien holders had agreed to settle, and an Equator email from the negotiator showing verbal approval of the short sale and that it had been forwarded to the mortgage insurer for approval.
We now have formal approval of the short sale, and the bank says they'll request the next law day extension. I'll follow up on that one to be sure they do it. If not, I'm sure we'll file a third motion to give us time to close the deal.
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