Two days ago we were informed by Bank of America that they would not postpone the auction on a property we are doing a short sale on. The auction is scheduled for next Tuesday. The property had an offer but the buyer was countered and walked about 2 weeks ago, leaving us with no offer.

The B of A negotiator informed us that even if we got an offer at the price they countered the previous buyer at, they would not stop the auction unless the offer could be approved AND CLOSED by Friday of this week (which was just 3 days away from the date we had this discussion).

Just on a whim, I had one one of our people call them today and here is the net of the conversation:

US: On this property, the seller is questioning why you are auctioning it when all over the press she is reading that Bank of America is stopping all its auctions. So why are you auctioning hers?

BofA: Well we are stopping the ones that had problems, but we are proceeding with the ones that don't.

US: And we know that this is one of the ones that doesn't have a problem because ... ???

BofA: Well it isn't in that group of loans.

US: So you say, but if you intend to move forward, our seller wants proof that you have the legal authority to auction her property off and that the foreclosure is being done correctly.

BofA:  (Silence) Just a minute. (On Hold) OK, we'll push it back to November 1.

This may not give us enough time to get an offer and try to save it. They may still try to auction it off, but I thought I would pass this little tidbit on. We'll certainly be using it again on BofA and probably with some of the other lenders that are halting short sales as well. We will probably try it again with this property before the first of November.

We're also considering making a list of properties that are up for auction and sending them to the Attorney General in the state. I wonder what would happen if the AG sent them all a letter demanding that they prove they have the legal authority to auction the property? Hmmmm......