USDA Rural Housing - Won't Stop Auction to Consider an Offer - Forum

Did anyone ever have any luck convincing USDA to stop an auction?

We have been calling on a property that was listed for a short sale and, even though we were authorized, were unable to get any information from USDA as to the foreclosure status of the property. We received an offer late last week and sent it in with the seller's financials. We called today to verify receipt of the documents.

A somewhat rude person who is handling this file informed us that they were not planning on even considering the offer because there is an auction date scheduled for March 7th and it is "too late to stop it." We argued the point but she was adamant that nothing could be done.

Does anyone know if USDA is following some of the new Fannie Mae rules whereby they won't stop auctions - you need to close before the auction date? Or do I just have a lazy government employee on the other end of the line who can't be bothered making a call to stop an auction?

Any advice or contact information would be greatly appreciated.

Thanks in advance!

Replies

Kevin - Greenville, SC October 10, 2011 at 5:35am

http://www.rurdev.usda.gov/SupportDocuments/3560-3chapter12.pdf
Steve Early February 26, 2011 at 2:10am

Thanks Bryant -

Since I posted this, we had one of the Realtors call to request a postponement and we got on the phone again and asked for a supervisor to review the file. Even though the negotiator was adamant that it would not be stopped, two days later we got an email from the supervisor saying that the offer was a good one, it would be accepted, and the auction would be stopped.

All good things come to he who is a pain in the butt.
Bryant Tutas February 25, 2011 at 2:56pm

Steve. USDA is a Ginnie Mae deal. I'm not sure what their rules are related to this. My guess is that it depends on the lender. There's a lot of good information here that may help.

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