Short Sale With Flagstar Bank
My husband and I put an offer on a short sale on June 12th. The owners of the home had not made a payment on it since November of 2009. The owner's accepted the offer and the bank was given 90 days to accept the offer or not. We were told that since it had been a long time since the owners had made a payment that our offer would be looked at soon because there were 3 stacks: 1 stack for people who hadn't made a payment in 30 days, another for one that was for over 60 days, and the final stack for 90 days +. After a month of waiting we were told that the answer would be yes, but they couldn't give us an answer on when we would get that yes. I checked again after about a month and a half and the file had moved from the negotiation stage to the underwriting stage for the final approval. When our 90 days was almost up late in August, we found out that the bank had not even looked at our file. They refused to look at our offer until the house had a foreclosure date. Apparently the short sale department wasn't able to get the file from another department. I'm not sure why we were being lied to this whole time. They ended up setting a foreclosure date for September 16 (today). So we ended up doing a 30 day extension on our offer. I emailed the realtor yesterday and she said that Flagstar had looked at the file and that they needed additional paperwork from the owner and she had obtained that and was going to fax it to them. I contacted the realtor again today to see if there were any updates since today is the foreclosure date and she was told that it takes them 4 business days to review any paperwork. My question is..am I completely wasting my time with this short sale? We sold our house and have been living with my mother-in-law which is horrible. I am in desperate need of a home and really love the one I am trying to get. Do you think we are just being messed with, or will they actually ever look at our offer. Has anyone even heard of needing to have a foreclosure date set before they will even look at an offer for a short sale?
Replies to This Discussion
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Permalink Reply by Janet Nelson on
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Flagstar is the only bank I have heard of with this requirement....Did Flagstar postpone the foreclosure to give them time to approve the offer and close the deal for you and the seller?
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Permalink Reply by Erika L. on
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No, not that I am aware of. When the home owner called the bank to check on the status late last month she was told that they would not look at the file/offer at all until there was a foreclosure date set. She then told them well go ahead and set a foreclosure date then. Well today is the day and this is the only reply that I got from the realtor that was listing the house....
I haven't heard anything today, but I know the foreclosure process is just starting. It takes 4 business days for them to process anything I fax to them, so I was going to call back early next week to make sure they had everything they need.
I'm not sure what to think now. The realtor just told me on the phone one time when I spoke with her that the short sale department wasn't even able to look at the file until the 16th.
Janet Nelson said:
/Flagstar is the only bank I have heard of with this requirement....Did Flagstar postpone the foreclosure to give them time to approve the offer and close the deal for you and the seller? -
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You should check with your real estate agent, or the listing agent if she is working with both you and the seller. If the house was foreclosed on today then the house should no longer available for sale through these sellers as a short sale.
Flagstar is not very good at getting short sale deals done...be it on purpose or because they just lack the organization to do so. We were lied to many times by Flagstar bank and the supervisors didn't seen to mind, so it would seem it's just the way Flagstar conducts business. -
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Permalink Reply by Guy Lofts CRS on
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Has anyone had a successful closing with FlagStar? I see no positive reports here!!
To my knowledge, everything i have read here is true.
Total incompetence. May they get all their homes back.
I have a mentally ill seller who clearly has lost job, house, family, everything, even mind. We have fought to have him sign docs, and to keep him in the deal. Buyers since March, repeated requests to "update " everything. Don't have negotiators, just a team of paper shufflers told to deal with ones nearest foreclosure. (Why not pick the ones that look the best deal?)
I feel like we have not done enough. Anyone have ideas? -
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Flagstar does this ALL THE TIME! I've been working on a case since June that over and over again is supposedly being looked at, but nothing happens at all. They have waited so long to make something happen on this file that now it DOES have a foreclosure sale date, and that BETTER make a difference since that is their 'highest priority' requirement. Good luck on yours!
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Permalink Reply by Lynne Catrow on
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What was the final outcome of your situation?
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Permalink Reply by Michael D. Schade on
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If you're waiting for a short sale through Flagstar,you better think twice about that. Flagstar has a reputation you probably don't want to hear about. My advice is RUN,unless you have months to agonize. I feel for you.
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We finally got an approval from the bank. We put our offer in June and finally got the yes in November. We had to live with my mother-in-law from August until December 1st, so not fun. It took the bank until the middle of November to finally give us a yes. Even the day of the closing Flagstar was still trying to have the deal fall through. The sellers ended up having to send them extra $ that they never agreed to and Flagstar did not want to pay for the deed preparation fee. I would never do a short sale with Flagstar again. It was a long 6 months.
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Erika, So, you are one of the lucky ones,think of all the others that could not endure the months of agony & frustration. You escaped the Flagstar black hole,CONGRATULATIONS!!!!!!!!!!
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Dear Erika,
My husband and I are waiting on a short sale through Flagstar Bank. April 20th will be 8 months of waiting. Is there any hints that you can give us about how to get a positive response from this bank??
We are on pins and needles and we don't know what to do. We have already decided that we are done waiting as of the 20th. They keep saying two more weeks, one more week, 3 more weeks.... We have NEVER done anything more stressful!
The sellers, in our case, are destitute and have absolutely NO money.
Please let us know ANYTHING that we should know about this part of the banks process...
Thank you so much!
Beth:)
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