Replies to This Discussion

Permalink Reply by Susan Motta Knight, LLC on October 10, 2010 at 4:14am

To my understanding this has little to do with short sales. Forclosures are stopped, many reo listings are lost back to the banks, but short sales are unaffected in that regard. Wheather they will be processed quicker or slower due to these changes I am not sure.

Permalink Reply by Susan Motta Knight, LLC on October 10, 2010 at 4:19am

I should of also mentioned that I called Chase yesterday on a short sale and they told me my short sale shold go through within 30 days. Chase is one of the banks that halted all their foreclosures, so obviously the short sales are not affected. Keep on doing them along with the rest of us!

Permalink Reply by Joanna Durrant on October 10, 2010 at 7:55am

I had a B of A mortgage short sale that foreclosed Wednesday. We were on the phone with the CEO's office and the president of the Short Sale Department's office and everybody acted as if it were the investor's decision and there was nothing we could do. My sellers had been trying to modify, even making forebearance payments and a Trustee Sale was scheduled. NOT COOL. They called me about a month before the sale date, and I thought I could get it postponed. We were deep into the Equator system, BPO had been done, etc.. We are fighting it. I am hopeful that come next week B of A will reverse it. But it will unlikely go to me as a short sale, but will revert back to the owners to finish their modification so they can keep their home. I have read that Fannie Mae has cancelled all sales of REO's that were purchased from B of A and also that B of A has halted all evictions from the Foreclosed properties. Obviously this policy can change at any time, but in the meantime, you just bought yourself some time! Congrats on that. I expect the other banks will follow suit which will allow more time for short sales and modifications, especially being that Fannie Mae and some banks had announced previously that they were no longer going to postpone the Trustee Sales. Every property they foreclose on further curses the neighborhood's values. People left and right are "walking away" because they no longer have equity. As unethical as that is, it is happening. If the banks would just modify people's mortgages QUICKLY and help them out, people would stay in their homes, which ultimately is the best business and financial move a bank can make. With things as they have been, the banks and investors are bringing their own collapse upon themselves. If things keep as they are, they might as well have just invested their millions in the stock market; they'll lose it all in mortgages, too, the way these banks are being run.

Permalink Reply by Jeff Payne on October 15, 2010 at 4:19am

It is just another smoke screen, I closed a BofA foreclosure yesterday and have another closing today. They are being very selective and I believe that it depends on the investor. I do know of some Fannie Mae backed BofA foreclosures have been frozen but the others are still moving forward. My guess it is the foreclosures that have been initiated by certain law firms.

Permalink Reply by Jeff Payne on October 15, 2010 at 8:18am

Just closed a BofA Foreclosure an hour ago. So much for the halting of foreclosures I guess. From what I can understand, the Fannie Mae files are the ones that are red flagged and have been stopped

Permalink Reply by Joanna Durrant on October 15, 2010 at 8:21am

You closed the short sale or it foreclosed on your clients?

Jeff Payne said:

Just closed a BofA Foreclosure an hour ago. So much for the halting of foreclosures I guess. From what I can understand, the Fannie Mae files are the ones that are red flagged and have been stopped

Permalink Reply by Jeff Payne on October 15, 2010 at 8:22am

it was an REO listing. Bank of America foreclosure property. .

Joanna Durrant said:

You closed the short sale or it foreclosed on your clients?

Jeff Payne said:

Just closed a BofA Foreclosure an hour ago. So much for the halting of foreclosures I guess. From what I can understand, the Fannie Mae files are the ones that are red flagged and have been stopped

Permalink Reply by Joanna Durrant on October 15, 2010 at 8:27am

Ah...That's good to know. We have a B of A Freddie Mac REO coming up and are crossing our fingers.

Jeff Payne said:

it was an REO listing. Bank of America foreclosure property. .

Joanna Durrant said:

You closed the short sale or it foreclosed on your clients?

Jeff Payne said:

Just closed a BofA Foreclosure an hour ago. So much for the halting of foreclosures I guess. From what I can understand, the Fannie Mae files are the ones that are red flagged and have been stopped

Permalink Reply by Jeff Payne on October 15, 2010 at 8:39am

I think those could be the files that are being stopped, might depend on the attorney that filed the foreclosure. Hopefully the name does not start with David and end in Stern

Joanna Durrant said:

Ah...That's good to know. We have a B of A Freddie Mac REO coming up and are crossing our fingers.

Jeff Payne said:

it was an REO listing. Bank of America foreclosure property. .

Joanna Durrant said:

You closed the short sale or it foreclosed on your clients?

Jeff Payne said:

Just closed a BofA Foreclosure an hour ago. So much for the halting of foreclosures I guess. From what I can understand, the Fannie Mae files are the ones that are red flagged and have been stopped

Permalink Reply by Steve Early on October 18, 2010 at 12:45am

Lenders took a few properties in our portfolio to auction in the last week or two. If you want to get one postponed try telling them your seller wants to know why their house is being foreclosed on when the papers say that all foreclosures are being stopped. We did that last week on a BofA short sale. The negotiator told us we had to have an offer "approved and closed" within 3 days or the property would be auctioned in a week. They were adamant that they would not stop the auction.

The lender backed off when we told them that if they went ahead with the foreclosure, the seller was going to want them to prove that:

a) they had the legal authority to foreclose on her house and
b) proof that it was taken to foreclosure properly

It bought us another month. Note that not all lenders have announced that they are stopping foreclosures in all 50 states. Bank of America made that announcement, but I think most of the others announced they would stop foreclosures in a specific number of states.

On the REO side, a Realtor I know had three REO closings put on hold this past week (REO properties that he had buyers lined up to close on). It isn't clear how long they will be 'on hold'. This is the bad part about this whole foreclosure mess. It's just adding to shadow inventory and hurting the overall market.