Need any help or direction with a short sale. Ocwen is the servicer. Received short sale approval on May 13th. Home gets foreclosed on May 19th. We are scheduled to close on Friday. Ocwen says they are trying to retract the foreclosure and give me an extension, but it looks like they are running down the clock. What can be done?

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Hello -

Sounds like a lawsuit IF the approval letter is dated to expire AFTER the foreclosure date. At SunTrust, when I was a Negotiator, we had this issue happen routinely with new Negotiator's and that is the reason Management review of Approvals was implemented - thus adding another tier to the review process and needless delays because of unseasoned staff.

In fact, when this happens on a Fannie, Freddie, or FHA loan - the Investor, requires the Servicer to repurchase the loan. These misnomers cost the Servicer's, not only all the fees associated with the foreclosure attorney fees, late fees, but also the total amount of the loan. Large issue as you can see. This is such an ordeal that lawsuits started (again, when I worked as a Negotiator) an onsite Attorney was hired assigned directly to the Loss Mitigation department to also share in the review of Approvals before issued to the seller or 3rd party.

Anxious to hear how this turns out. Ocwen is also laying off staff and the restructuring is causing delays in ordering Appraisals, Value Disputes, you name it!

Hope this helps.

Thanks, Elizabeth

Check the court docket to see if they filed a motion to vacate the sale.

They have now reversed it and vacated the sale. The judge just signed it and we are waiting for a revised short sale approval letter to be generated with new closing dates.

I has taken a little while, but they have kept me updated with each step since they foreclosed on the property ACCIDENTALLY.

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