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Carlos, Home Seller in San Diego, CA

waiting for a short sale to be approved and I received a foreclosure letter, what can I do? i have offers for my house...

Asked by Carlos, San Diego, CA Mon Nov 22, 2010

I am waiting from the Bank of America to approved my short sale, ( I start the process 3 months ago) but they send me a letter with foreclosure intentions and my time is almost finish, I only have 12 days and I dont have any answer for my short sale, and I have 3 offers for my house (one is very decent in price$$$) but they just give me answers like :is in process, we have to wait more etc.
The problem is :Foreclosure department is not the same as short sale and they are different people.
Please I appreciate any help...What can I do?

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Answers

9
Carlos,

Based on what you have just described, what you have received from the bank is the initial contact from the bank that they will start the official foreclosure proceedings. What I would suggest you do is get this information to a real estate attorney, as soon as possible, to protect your rights. As you have not stated what the name of the document is, I don't know what the true time frame would be. That is why is it very important you see a real estate attorney immediately. You will want a real estate attorney that know about the foreclosure proceedings, you can not go to just a general practitioner, you will need a specialist for this.

I wish you the best of luck.

Lila Lopez
0 votes Thank Flag Link Tue Nov 23, 2010
Thats me, Carlos.

Thank you to all, for the amazing fast respond.

I have a local Realtor who has experience in short sale, we find the best price for my house, we make an open house, we received 5 offers, we take the best one, and we keep two more for backup, my agent send all the information and signed papers to the bank and looks like everithing is o.k. for the bank becouse they dont request me something else.
I received a letter from the bank where they tell me : You are late on payment for 90 days, if you dont pay the ammount on December 8, we take legal possecion of your house.
I let my agent know about the letter and he contact the bank inmediatelly but they just answer: We are working with the papers in your case and the foreclosure will not happend.
But I only have 15 days and are going fast.
The foreclosure department said: We dont see in our system a short sale aproved, until this happend we continued with the foreclosure.

Again, thanks for all the good help.
0 votes Thank Flag Link Tue Nov 23, 2010
Good Morning Carlos,

From what I can see, you are trying to do this possibly on your own and given how detailed this process can be it is extremely important that you contact an attorney in order to represent you on the foreclosure side of this. Each bank works differently, and even within the same bank each negotiator has a different work style and approach. I have had quite a bit of sucess on short sales, with the most important item , ensuring that the bank is in receipt of the proper documentation that they require. A good real estate attorney can forestall the foreclosure for you.

The document you are referring to having received, is that the Lis Pendens, which is the initial notification that a foreclosure proceeding has been started? If what you are referring to is the Lis Pendens, then the 12 days is the amount of time you have to get an attorney to respond on your behalf to the bank, and then the full foreclosure proceding starts. Or does the letter you reference state that there is an actually foreclosure sale date? That would be quite a different letter.

On the shore sale side, it is not clear by your posts how you have handled the offers you have on the home. Have you submitted all 3 offers or just the one you think is the best one? Are you working with a local realtor that is additionally providing the bank with the additional documentation needed? I have found through experience that most of the problems can be resolved by having a clear understanding of what the bank wants and ensuring that the documentation submitted meets their requirements. Something as simple as not placing the loan number and last four digits of your social security number can delay the process.

What you will want to establish is that both the short sale department has what they need, and that the foreclosure department is fully aware that you in the process of selling your home and have submitted for short sale approval. Again, each bank is different, with some banks, the short sale department does communicate with the foreclosure department and vice versa, but unfortunately due to the volumes that are being worked , it is possible to have some lack of communication between the two. This is where a good real estate attorney can make sure that the foreclosure sale is placed on hold to allow for processing of the short sale.

Please let me know if you have any additional questions.

Lila Lopez
Certified Property Distress Expert
0 votes Thank Flag Link Tue Nov 23, 2010
My questions are:

Have you submitted you offer under hafa or the normal process?
Has your agent submitted it thru equator to bank of America?
Is there mortgage insurance on your loan?
Are there more than one loan?
Has a brokers opinion been completed on your property?
Have you submitted all the required documents:tax returns,pay stubs, bank statements, cash flow statement and hard ship letter?

If the brokers opinion has not been done, I would escalate it at B of A to a supervisor or manager. Get an explanation of why it is complicated.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Mon Nov 22, 2010
Generally the bank will put a postpone to the foreclosure action in order to finalize a short sale. It makes sense as they will lose far more money if they foreclose than if they approve the short sale. You need to get the two departments to talk. Who is negotiating your short sale? If you are using an agent or an attorney they should be calling the bank every day to get the sale date postponed. If you are not using an agent or an attorney who IS negotiating on your behalf? You really should not be trying to do this on your own.

The sale date can be postponed up to the very last minute, but you need help my friend! Please, please find an experienced realtor or an attorney, but get some help!
0 votes Thank Flag Link Mon Nov 22, 2010
Thats me, Carlos, I just want to make a coment:
Bank of America change 3 times the person who is in charge to my case,so they lose time just in that,plus they know about my letter for foreclosure and just answer :we have to wait, its complicated etc. but my time is almost finish, 12 days...
what will happend when we get the foreclosure date and I stil waiting for a short sale approval?

thanks...

P.D. exellent time respond...good service. thanks
0 votes Thank Flag Link Mon Nov 22, 2010
Hi Carlos, based on the facts you have stated, I would urge you to contact a Real Estate professional in your area who specializes in Short Sales, (check.CDPE.com to find one with special training on Short Sales). Laws governing foreclosure vary by State. Since your time is running out, I would also encourage you to speak with a Real Estate attorney, who may be able to temporarily halt or delay the foreclosure proceedings. What ever you do, do not wait for the two different departments at the bank to start communicating. It may never happen.
0 votes Thank Flag Link Mon Nov 22, 2010
The two departments do talk to one another, but sometimes it requires you to call your short sale negotiator and let them know about the foreclosure sale date so that they can communicate with the right department to put a hold on the foreclosure proceedings. Post pack with what happens. Thanks.
0 votes Thank Flag Link Mon Nov 22, 2010
the key is the short sale people and the foreclsoure departments ar different and working in different directions, i would first contact the home retention department and ask them for assistance in postponing teh foreclosure to let you get an answer. you should also contact the short sale people at BOA to let them know you received a foreclsoure notice and you need an answer. you need to make sure your buyer is ready to close, all contingincies have been met and forward that info to the short sale negotiator.

please see my blog with tips on getting a short sale approved.
0 votes Thank Flag Link Mon Nov 22, 2010
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