Foreclosure in 91367>Question Details

Bruce, Home Buyer in Woodland Hills, CA

Fishy Practice on short sales and REO?

Asked by Bruce, Woodland Hills, CA Mon Jun 9, 2008

Hi guys,

I noticed something very strange last week on a short ales property and I wanted to share that with you and see if you can explain me what happened in this process of short sales/foreclosure
As a buyer I have been monitoring the REO properties for a while and last Friday I noticed that a property became foreclosure and sold to the lender.
Since I was interested on this property I asked my agent to make an offer on this property. So the first thing he did was to pull out the property title and then he called me a few hours after and told me that the property has been “short sold” around 2 weeks before (May 23rd).

So my question is if when a property is sold as a short sale, how can it make it to the Trustee sale and even foreclosure?
I am not sure what happened on this property and neither my agent could explain it to me? Is there anything fishy going on in Short Sale/ REOs practice?
The parcel number is: 2151-003-008 and you can do your search

Thank you

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BEST ANSWER
Bruce:

When I received this question, I immediately contacted the Trustee through the Trustee Sales Line on this property and it indicated that the home was sold to the beneficiary (the lender) on June 6, 2008 for $352,500. Being forever curious, I also checked my title site and it shows the property sold on June 3, 2008 for $480,000. There may be several explanations for this, not the least of which is the fact that lender's loss mitigation departments are sooooo busy there are often breakdowns in communication. This just reinforces the fact that when you are dealing with pre-foreclosure properties, you must work with an agent who understands foreclosures and short sales, and who is extremely diligent in doing their research and making sure you are protected. If in fact this home sold to a third party on 06/03/08 and then to the bank on 06/06/08, the new owner's title insurance will probably need take care of straightening this up for them.

Best wishes to you in finding your perfect home and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
1 vote Thank Flag Link Mon Jun 9, 2008
Outstanding question.

Another lender caught in the act and in a scam against the homeowners of the United States of America. Give the man double thumbs up (I am so close to being kicked out of here - its funny, all I wanted to do was help spread the word)

Lender is not a lender, got that! The lender is a broker and set up to originate and aggregate! Lender is paid to originate. The real lender is MERS (What! ! ! ! ! ! ) Thats right - only $29 dollars and your lender is MERS. Flip your finger at the regulatory disclosures against business combinations. Its lender make the rules time.

Now its Foreclosure time - Servicer says "before we can help you Sir you must be 60 days down" What the funk! As JFK would say "Let me say this about that". You see the lender who sold the loan and who now is foreclosing (say what!) wants to avoid the repurchase. No way man...foreclosure after 60 days is a foregone conclusion 90% of the time - and you know what? NO MORE RECOURSE SO TAKE EM DOWN AND OUT! FORECLOSURE TIME SUCKKAR!

SO THEY OFFER A MODIFICATION AND A SHORT SALE....RIGHT! PLEASE....STOP IT ....CANT TAKE ANYMORE! ! ! LOSS MITIGATION - DOES NOT EXIST - JOKE ! WHATEVER! RIGHT! ! !

So now it's the night before Christmas and all through the house are the sounds of a family breaking apart once and for all thanks to a lender whos chairman got a $25 million bonus and whos earnings were in the billions last year. It foreclosure and sale time.

So if a lender takes back the house as we know they do in foreclosure - wazzz up with the "sale back " you ask? Its the Tide talking stain! Heppp. oppp waaa booo pawww ! Make sense?

Overcollateralization is that insurance covering gap loss on trustee sale (please its not even a trustee!) That coverage kicks in only in a foreclosure. The servicer for the broker or lender - its partner - get hugola bonus by steering the loan into a foreclosure (Whewwww!) where the lender or broker I mean can side step its recourse and not take a loss. Vegas Casinos in Calabasas, California Winner

So the lenders here are likley executing a sale by trustee on one date and not recording the close untill it "flips" it back to the trustee for the pass through investment. Its what you and I would go to jail for! now am I sure of whats going on .....well maybe the serviers are so busy they forgot right!

Wrong.

Check out the taxes remaining unpaid on all these properties months after closing .

Whzzz Upppp!
0 votes Thank Flag Link Thu Jan 29, 2009
Thank you Shel Lee & Dyanna for your answers. Now I have a better understanding of what happened.

Regards
Bruce
0 votes Thank Flag Link Mon Jun 9, 2008
Hello Bruce. In dealing with short sales and REO's you have to make sure you are being serviced by a real estate agent that KNOWS and UNDERSTANDS short sales and REO's. This property was a short sale, it never went back to the bank or in other words there was no trustee sale. There might have been a NOTICE OF DEFAULT placed against the property,but the bank never took back the property ( this is what the profile shows). When you have a home for sale and it is a short sale, even if there is a pending Trustee Sale date approaching, many banks will postpone that date to work with the offer that has been presented to them. This postponment does not reflect anywhere, but it does exist. Short sales are wonderful if you have someone that can navigate you through them. I have an article in the Press-Telegram that I wrote regarding foreclosures. It is a really good article and explains short sales and REO's very well. Please look it up in the Press-Telegram, under Dyanna Avila, LEARNING TO FOLLOW THE STEPS OF FORECLOSURE. If you have any other questions I would be happy to help.

Dyanna
dyannaavila@hotmail.com
0 votes Thank Flag Link Mon Jun 9, 2008
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