Short-sale offer on table for 9 months, bank said we were close to approval and then didn't postpone trustee auction!

Asked by Joel, Maricopa, AZ Thu Mar 18, 2010

I have been pending short sale since last JUNE. The original buyer was still on board, and B of A was doing nothing. Finally last month we went to the Equator system and it seemed like we were actually going to get this thing done. Yesterday my Agent tells me she is having trouble getting conformation that our auction would be postponed (4th time). I called 3 times to both foreclosure and short sale departments, none of them new who to actually talk to, or if the postponement would take place. I actually had one guy review our file and say "this is one step away from approval, why wouldn't they postpone?” None of them showed this as short sale denied. Sure enough it went to auction (the reserve wasn't met). Is there any way I can at least get this wiped off my credit?? Do they have an obligation to tell me my short sale is denied?? Thanks for any help.

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The Medford…, Agent, Fremont, CA
Fri Mar 19, 2010
Joel:

Jay gave a great example - had the exact same thing happen numerous times. Banks make NO sense at all.

Go forward, build a new life and we all wish you all the best.
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The Medford…, Agent, Fremont, CA
Fri Mar 19, 2010
Joel:

Used to be that the classic oxymoron was “military intelligence” …

Take out the work “military” and substitute “bank” …

I’d love to write a book about how stupid banks can be, but no one would believe me. Reality is WAY more bizarre than fiction when it comes to the TOTAL lack of sense that banks have exhibited with short sales.
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Joel, Home Seller, Maricopa, AZ
Fri Mar 19, 2010
Thank you all for your response.

I moved to another state, and both my wife and I have great jobs. We are in shock that they would do this, as it makes ZERO sense from a financial standpoint for the bank. We had a verified cash offer, above asking price, which is currently about $12k above the average sales price in our neighborhood PLUS we were willing to pay some serious voluntary funds ($10-15k).

Now they are going to sell it themselves and lose upwards of $30k?!?
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The Medford…, Agent, Fremont, CA
Thu Mar 18, 2010
Joel:

Been there. Seen that. Just last week, in fact. First we knew was when an REO agent called to ask us to come get our sign. And we do a lot of shorts sales and have a very good pulse on the system …

We had NO warning and after about 50 million phone calls, decided there was NO recourse. And we had 8 offers on the property, all over asking. It’s not fair, not right, BUT … as the inestimable Jay has so correctly pointed out …

The lender has no obligation to postpone if they don’t want to … in other words, banks can just about do whatever they want and we have no recourse.
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Stew Keene, Agent, Scottsdale, AZ
Thu Mar 18, 2010
Joel,

I am so sorry to hear about your experience. Since it is Equator you described as the electronic servicer, I will assume your bank was B of A. No surprise there that it happened. They have a reputation for poor communication...

My primary concern is for you now. If you are still in the home then you need to find someplace to rent and soon. Banks don't usually let you have much time and you don't want to be served with a forced eviction and have to appear before a judge and pay attorneys fees. That will just make things worse for you.

I'm afraid your credit was already hit when you decided to stop making your payment, so the foreclosure will soon follow and generally speaking, the quick answer is no, it will remain there now.

If you are working with a Realtor that has assisted you then see if he or she can find you a rental home. Most landlords are forgiving the foreclosure hit on your credit because its common place now. Good people paying their bills but not able to make the inflated mortgage payment are being accepted.

So hang in there, stay focused on keeping your job if you have one and keep moving forward.

All any of us can do right now is hope and wait that the problem is solved through rational solutions instead of banks failure to serve their client.

I wish you all the best to you and your family.

Sincerely,

Stew Keene - Home Smart Realty
0 votes
Leanne Finlay, Agent, Kirkland, WA
Thu Mar 18, 2010
Have you called an attorney? Or the State of Arizona's Attorney General's office? You may not be able to do anything, but why not try? Be sure to document dates, phone calls, conversations with good notes.
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Greg Frederi…, Agent, Tacoma, WA
Thu Mar 18, 2010
Unfortunately the banks own inner departments do not always communicate with each other and in my experience B of A has been one of the worst for inner office communication. They may have actually been really close to an approval but because of lack of communication it was sent to the auction anyway. They do not necessarily have any obligation to tell you that the short sale was denied and it may very well not been denied just lost in the system. As for your credit unfortunately whats done is done after the foreclosure is official.
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