Replies to This Discussion

Permalink Reply by Jim Hale on April 25, 2011 at 5:06am

Not only does the right hand not know what the left is doing, the left does not seem to know there is a right.

Permalink Reply by Alice Joseph on May 4, 2011 at 12:13am

statement: "the lender has taken back the property but still treating this as a short sale".

I asked : could you please explain the process that would allow a REO to be closed as a shortsale?

I was told: The Bank explained that they would rescind the foreclosure or deed the property directly

I asked: How long before we know whether BoA will be able to rescind the foreclosure or do a direct deed transfer or even be proceeding with the shortsale?

They forwarded an email from the negotiator that said:

Since the property has gone to REO, the process will be difficult. We will still need to try to do a recission after the short sale approval. This will be more complicated than another short sale so It is totally up to the buyer please let me know if she would like to walk away from the sale because I'm not 100% sure that this will close

So I asked: When do they expect a short approval to proceed with the rescinsion? If not 100% sure, what is the % - 5, 50, 80? What happened to the option of "direct transfer of the deed"?

Then they said they have emailed the negotiator with the following:

I would like to clarify a few things to explain to the client, as per her request, so we can continue with this transaction:
 
1-How long is the period you can still close this same contract?.
2-Since there was a counter offer and she accepted, that means the transaction is approved by the investor, rigth?
3- Please confirm that we can close this transaction, so the buyer can keep waiting for a certain deal.
4-Please confirm how will the transaction continue, be as explicit as possible, so she can feel re-assured that this will close.

 

The second question threw me off - 'since there was a counter offer and she accepted, the transaction is approved" - which world do they live in? I knew this must be their first BoA shortsale, if not their first shortsale, though they didn't disclose it, but being in a shortsale for 3 months and still not knowing the basics??? unbeleivable...

 

So I asked them to just forward my questions to the negotiator and get me the answers.

And today I get this response  (an email from the negotiator forwarded as well as what was told on the phone):

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I'm not sure if it would be best to continue with the short sale due to the status of the home (having already foreclosed). I tried calling you back at the office, you were not available and the voice mail was full as well. I think that it would be best to decline the file at this point since we would have to deal with the rescission process which is not guaranteed. Please call me at xxxxx 8am-5pm EST
 
So I called him and he said "the process is a mess because the REO department is overloaded and going nuts. That is also why the property went to foreclosure, because they made a mistake and did not processed  the fact that the loan was already with an offer and made him and us waste our time. He said they are taking longer to process the recession period, around 60 days. So, if the lady is in a rush, he would not take the case because he would  waste his time."

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So, did I get answer to any of my questions? 

Has anyone been that route of the bank rescinding the foreclosure to close a shortsale? Or  a direct deed transfer (which they are not talking about anymore)?

 

Thanks

Alice

Permalink Reply by Jim Hale on May 4, 2011 at 4:39am

Was this a FANNY or FREDDIE loan?

Keep in mind that all policies and procedures are likely to be in a magical state of flux as those two major "investors" were told by their regulators this last week that, by the third quarter, they must get themselves into a situation where there is no more dual track processing - every loan must handled as either a short sale or a foreclosure.  Properties cannot be handled as both in the future. 

Permalink Reply by Alice Joseph on May 14, 2011 at 12:52pm

Jim, I don't know whether it was a FANNY or FREDDIE, I didn't get a response to my query on that from the other side. But a search on Fannie said it doesn't belong to Fannie, so I assumed it is Freddie.

 

Anyway, I was told that the transaction was cancelled. Nothing more. An expected turn of event, though.