Foreclosure in Waterford>Question Details

Shelley, Home Seller in Waterford, MI

In Michigan, is there anyway to get the redemption period extended if there is an offer on the table?

Asked by Shelley, Waterford, MI Wed Nov 5, 2008

Primary mortgage is thru Flagstar with Fannie Mae, secondary is with Flagstar. We have agreed to pay back the secondary, half from my ex husband, half from me. We went into default a year ago and this is the 7th offer we have had in 10 months. We tried to do short sales with all the offers. The other buyers walked away, yes, 6 other buyers, because the two banks took way too long in making any decisions or communicating. We finally have an offer that the buyer has stuck around and worked with the banks counter offers and really wants this house. Then we ran into a problem with the buyers mortgage wanting info about the home owners assoc and so we couldnt close as planned this past monday. There is a high likehood that we could close tomorrow morning but its the last day of our redemption period, 11/6 and our approval was for closing on or before 11/3, flagstar did give approval to close through today at noon but the buyers mortage wasnt ready, now their saying its too late. Any ideas?

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hi again.......as a second thought.....i would ask for a day or two addtional to close.....past when you think you can get the deal to the table....if the buyer's mortgage closes in escrow.you are still within terms of the extension....bob mcclure....
0 votes Thank Flag Link Mon Jun 1, 2009
good afternoon....the only expedient way to communicate with the bank...even thought their corporate office is local (troy) is probably through the attorney's office that foreclosed on you, who can then communicate with the collateral manager at flagstar....the lender, at their descretion, can grant an extension of the redemption period to accomodate your closing, but you need the input of a decison maker........a brief statement in writing and probably recordable from flagsar presented to the title company stating your redemption has been extended and the effective date would suffice...the title company, i'm sure would do a phone verification to confirm it.i hope that helps..let's us know how you do..bob mcclure- success mortgage partners- plymouth, michigan...
0 votes Thank Flag Link Mon Jun 1, 2009
Shelley:

I have seen some success in contacting the company that is handling the foreclosure. This company would be indicated in the Legal Notice that was published in the legal news and also postedd to the property. If you have a viable offer you can request in writing an extension to the redemption period. They are usually willing to work with you because it is more cost effective for the lenders they are representing to extend the redemption period rather than complete the foreclosure and evict you.
0 votes Thank Flag Link Mon Jun 1, 2009
Shelley,
You gotta work with the bank on this one. I would think it would be in the bank's best interest to close on it and avoid the added expenses of evicting you and your husband AND potentially re-marketing the home. At the end of the day it may not be Flagstar's call as Fannie Mae is the investor (the true owner of the loan) and with all the turmoil over there I doubt Fannie has the resources to make a quick decision.

If it falls through then you just have to feel good that you TRIED to do the right thing and it was out of your control. It's probably not going to make a difference to your credit either way. Your credit is shot for the time being anyway and any lenders in the future will look at things the same regardless of whether you "technically" had a foreclosure or not.

Good luck
Tony
0 votes Thank Flag Link Wed Nov 5, 2008
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