Home Buying in Farmington>Question Details

Chad, Both Buyer and Seller in Farmington, MN

MN Short sale failed...now what?

Asked by Chad, Farmington, MN Fri Jul 9, 2010

We put an offer in on a short sale property back in Feb. The bank we were dealing with was Bank of America. Eventually our offer was accepted in June and we had our closing last week, or so we thought. Anyway, on our closing date, supposedly they were waiting for something from some law firm and they asked if they could delay the closing until the next day. (BTW, the property had to close by 2:00 the next day or it goes to foreclosure.) Anyway, supposedly the negotiator with Bank of America failed to submit our file to Fannie Mae for approval...which had to be done 30 days in advance of the foreclosure date. So in the end our file was not approved at all because of this and we did not get the home. So I'm curious if this sounds like a reasonable explanation for the failure? What happens after a short sale fails in MN? What is the time-frame? We are still interested in the property so any help is appreciated.

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8
Chad,

I can identify with your frustration, my family when through a very similar issue trying to buy our current home.

Step one, have your Realtor set up a search based on the address, this will send you an email when it is put back on the MLS.

Two, Be ready to move quickly, when my home came back on the market there were 18 offers on it. Know your comfort zone and be prepared for a Highest and Best call when it is listed again.

You could also spend some time calling the offices of agents that list a lot of bank owned properties. You can call them and ask if they list a lot of BOA homes. You can shrink your list to agents that get BOA listings and touch base periodically.

Good luck, the road ahead is not easy but it can be done.

I would recommend that you continue looking, the time line is not guaranteed, it could be a few weeks or many months before it is listed again, don't get discouraged.

Best of luck,

-Matt
0 votes Thank Flag Link Mon Jan 21, 2013
Just a quick clarification. While it may take a lender a while to place a home on the market, once redemption is over the bank owns it. Period. No short sale can be done once it is owned by the bank. Then, as suggested, it is just a matter of time waiting for it to come on the market. And right now that is averaging anywhere from two weeks to two months. Sometimes longer.

And so you know, Fannie Mae does let agents who work with them often know of upcoming inventory. That would include info on who will be listing it.

If your agent doesn't have that, contact me and I will be happy to set up a list watch.

Best wishes,

Steele V. Propp, CDPE
Bank Owned Specialist
Schatz Group, REO Division
steele@SchatzTeam.com
612-325-6764 direct
0 votes Thank Flag Link Fri Jul 9, 2010
Oy, Chad! So sorry to hear about this happening to you. Unfortunately, you are not alone in these scenarios. All of my colleagues have it right. If this property is now bank owned, it will be coming back on the market at some point in the future. Could be a few weeks to a few months. Have your agent monitor this closely so you can have first crack at it when it comes back on. I don't see as you have any other alternatives at this point. One agent here suggests contacting someone at BoA. Might not hurt, but it might not get you any results either.

Good luck!
0 votes Thank Flag Link Fri Jul 9, 2010
Chad, short sales are always unpredictable. This will come back on the market as a bank owned property, I would monitor the listing, and make a new offer when it comes back on the market as a bank owned property.
0 votes Thank Flag Link Fri Jul 9, 2010
Chad,

I would contact the following people at BOA:
jack.schakett@bankofamerica.com (Jack Schakett-Bank of America senior vice president for credit loss and mitigation strategies)
Renee @ renee.dewey@bankofamerica.com (MLO-Sr.Loan Svcs Specialist)

I would voice your frustration over this process.

As far as time-lines go (Short-sale to Bank-Owned), this can be as fast as a few weeks, or as long as a few months (or more). The property has probably already been assigned to a listing agent, so you should be able to get some insight/time-lines from them. If you are working with an agent, have him or her find out who the property has been assigned to.

Hope this helps!

Scott Hutchinson
Edina Realty
scotthutchinson@edinarealty.com
http://www.scotthutchinson.edinarealty.com
C: 612 396-0692
0 votes Thank Flag Link Fri Jul 9, 2010
Chad,

Really sorry to hear about this situation. Unfortunately short sales are unpredictable and terms can change at just about anytime in the process. I am sure it's a very frustrating time for you! If you really want that home you'll want to drive by it on a regular basis to see who the bank assigns to represent them. Usually a bank/reo agent will put their contact information in window or near the door. I would contact that agent asap or have your agent contact them(my recommendation) immediately to make sure they know you want the property as soon as its ready to list. Unfortunately the transition process from short sale to foreclosure can take some time. Banks typically move slowly in real estate dealings. Sorry to hear about this situation it's never an easy thing to deal with and can be very emotional I am sure. Best of luck getting the home you want!
0 votes Thank Flag Link Fri Jul 9, 2010
Would really need to know the detail of the situation, Chad. If the redemption period was over the next day, and you pass that timeframe then your purchase agreement is no longer valid. The seller doesn't own it anymore. The bank does.

If the bank gets it back they will be placing it on the market sometime in the near future. You will need to be monitoring the property closely to be in line to make another offer when it comes available.

Best wishes,

Steele V. Propp
Certified Distressed Property Expert
steelep@aol.com
0 votes Thank Flag Link Fri Jul 9, 2010
Since you are still interested in the property, why not consider consulting with an attorney who specializes in real estate and have all documentation reviewed--see exactly what options you may have and go from there--your attorney will be your best source of advice.
0 votes Thank Flag Link Fri Jul 9, 2010
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