Foreclosure in Troy>Question Details

schenkrm, Home Seller in Troy, MI

How can Wells Fargo ignore a short sale offer and let a home be sold at sherrif sale?

Asked by schenkrm, Troy, MI Sun May 13, 2012

I am curious to know how Wells Fargo, allow a home to be auctioned at a sherrif sale without the review of the short sale information presented prior to the auction date? What legal avenues are there for me to save my credit from the 7 year forclosure rating. I actually have had two short sale offers that latest of which is confimed CASH and apparantly Wells Fargo couldn't communicate within there own messed up corporate structure to even consider the offer prior to the sherrif sale. Also I was not informed of the potential date that the sale was to take place and my real estate agent is obviously NOT as effecient as I was led to believe as she didn't figure it out either. Now apparently Freddie Mac has to get involved since the bank obviously believes I am secretly a millionaire trying to dispose of a situation I obviously was unable to avoid. I really just want to know if I have any legal options based on this situation.

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When you get into a short sale situation specially with Wells Fargo, you have no idea how the transaction is going to ended up. Last year, I lost 3 customers because of Wells Fargo.

Maria Cipollone

Century 21 Tenace
1 vote Thank Flag Link Fri Jan 18, 2013
We have an attorney and followed all the steps and then at the last minute Wells said we forgot a form and said we could no longer do a shortcake. Their are proceeding with foreclosure. We still have a buyer but they won't even consider shortsale now. Let them have fun trying to find another buyer for a sick house with mold. Unfortunately we were stupid enough to buy it and 20k of remediation and repairs later and we still had to move out because it was making us sick.
0 votes Thank Flag Link Fri Jan 18, 2013
Hi Barb

Get in touch with a Bankruptcy attorney, he should held you stop the process

Flag Fri Jan 18, 2013
Hi Schenkrm

Its best that you get in touch with a Real Estate Lawyer or a Bankruptcy lawyer.

A Bankruptcy lawyer will stop the Foreclosure process.

Good luck.

Web Reference:
0 votes Thank Flag Link Fri Jan 18, 2013

Short sales are very confusing & each one is different. The different departments do not communicate with each other very well or not at all.
Is your agent doing the short sale themselves or is there another short sale negotiator involved?
Short sales can still take place after the sheriff sale but are more difficult.
You definately should of received notice of the sheriff sale. If you didn't then something is wrong. It should of also been advertised in the legal news at least 4 or 5 times.You may want to get a lawyer involved. My short sale negotiator has a lawyer & offers some free consultation. Maybe yours does to.

I wish you the best!!
0 votes Thank Flag Link Fri Jan 18, 2013
I have seen this happen before where the bank is working on a short sale and they end up foreclosing on the home while a short sale is still being attempted. There probably isn't to much that you can do but you could try to talk to a real estate attorney and see. Usually once there is a date for the Sheriff sale someone needs to communicate with that department in the bank and get it postponed. If there is no communication then the Sheriff's sale will happen regardless if you have a buyer for the short sale transaction or not.
0 votes Thank Flag Link Fri Jan 18, 2013
We have had a real estate attorney handling our property from the beginning...We have had a buyer for over a year. Wells made us jump through hoops and then at the last minute said we didn't upload a document so the short sale was denied. They are forcing foreclosure now. How can they do this??
0 votes Thank Flag Link Fri Jan 18, 2013

Fortunately for you, your home is in Michigan. We have redemption period of usually 6 months. If the property is vacant, they can take it in as little as 1 month. You still have the right to sell it in the redemption period.
You should of received notice of the short sale from wells fargo. Your agent would not, unless they have authorization from you to contact & speak with your bank. I use a short sale negotiator that gets authorization from my sellers. My short sale negotiator has a lawyer that you can contact with any question. I don't know what your agent does. Every short sale & situation is different.

I wish you the best,
0 votes Thank Flag Link Mon May 14, 2012
The short sale department at Wells is not in the same building as the foreclosure department (and I believe they're not even in the same state). Often lenders will dual track a foreclosure even when a short sale is in progress. That way if the short sale falls through, they haven't lost time and money. But my guess is the short sale department failed to notify the foreclosure department. And under Michigan law you should've been presented a copy of the foreclosure order. It should've been physically attached to the home.
0 votes Thank Flag Link Sun May 13, 2012
Troy, it depends which investor has the loan. sometimes investors put their own insurance on the portfolio they purchase. They don't tell us Realtors that when it comes to a short sale. If the offers are lower than what they would net considering their own insurance than they will foreclose. That may make no sense to us who are not privy to this info but it makes perfect sense to them.
I lost a listing or better said I did not renew it because I couldn't win. I had an excellent offer but it was below their tipping point. which was far too high for the prevailing market value. Hope that helps.
0 votes Thank Flag Link Sun May 13, 2012
At this point it's really in your best interest to consult with an attorney who specializes in real estate; most professionals do offer a free consultation, or contact your local Legal Aid Society for a pro bono attorney, free...
0 votes Thank Flag Link Sun May 13, 2012
Good Evening!! For any legal advice you need to speak with a real estate attorney. If your home is still in the redemption period you can still attempt to do a short sale.

Good Luck,

Karen Paytas, GRI, CMS
Real Living Kee Realty
0 votes Thank Flag Link Sun May 13, 2012
I've heard no more short sales during redemption, NO?
Flag Mon May 14, 2012
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