sacramento public auction foreclosuresEver since I lost a short sale to the auction block in 2006, I've been trying to keep tabs on the foreclosure activity regarding my Sacramento short sales. On that particular transaction, we were in the middle of negotiations with Bank of America when the next thing I knew, an agent called to say he had just listed that home in Land Park as an REO. Apparently, the loss mitigation department had not been communicating with Bank of America's foreclosure department. But sometimes negotiators simply close out files and don't inform the agents.

My first clue that something was amiss was when a woman called me yesterday. She asked for a copy of the home inspection for one of my short sale listings. I told her it was in escrow as an active short contingent and not available. Then she turned a bit snippy, insisting that she was entitled to a copy of the home inspection, as though this information was a public record.

No, only the seller and buyer are entitled to receive the home inspection. She has no rights because she is not a party to the transaction. She called me a 5-letter word and slammed down the phone.

Hmmm . . . why would a rude person demand to see a copy of the home inspection on a listing? Perhaps a person bidding at a public auction who thinks I represent the bank, that's who.

The next phone call came from a very nice guy who says he has purchased 54 homes in Sacramento so far this year. He began asking questions about this particular listing. He seemed focused on its physical condition. When I told him it was in escrow, he said it was up for an opening bid at the public auction at my list price!

An email had been sent to the negotiator at Wells Fargo, letting the negotiator know that the buyers and sellers had accepted Wells Fargo's terms, and we were ready to move forward. Apparently, Wells Fargo somehow let this one slip through the cracks and instead sent it to auction.

After much screaming at Wells Fargo, we were able to get the property pulled from the auction. Out of the fire at the last minute. This was similar to planting a squash on top of a football zombie just before the zombie eats my brains in Plants vs. Zombies.

Within minutes of halting the bidding process, the investor called back. He seemed impressed, pointing out that I must not be your average Sacramento short sale agent. He asked if I would let him know if any of my bunch of active short contingents fall out of escrow or when I list other short sales in Sacramento. You know what? I will. If you're reading this, thank you, Bob.

sacramento short sale agent

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Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. DRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and at Amazon.com.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.

 

 
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16 Comments on Wells Fargo Sent a Sacramento Short Sale to the Auction Block While in Escrow

OCT
31
Outside Blog

The drama of short sales! Congratulations on successfully saving the deal and attracting a savvy investor.

9:03am • #1
475,654 Points 41 Featured Posts Localism Sponsor Outside Blog Hit Router

My last short sale with SunTrust we had to pull it out of foreclosure right before settlement.  That was twice on one file.  We had already set the settlement date when I figured out that we were settling on a Friday and they had scheduled the foreclosure for Monday.  No doubt if I hadn't caught it when the title company went to record the deed they would have discovered the property had been foreclosed on.  You would hope at some point the lender departments would figure out how to talk to each other.  Anyone hear of workflow software and tracking??????

9:05am • #2
1 Featured Post Outside Blog

Way to go Elizabeth! Tammy is correct the drama surrounding Short Sales is beyond comprehension.

Earlier this year I assisted a seller with a Saxon Mortgage short sale. It was successful and the home settled, and everyone was pleased with the outcome. That is until three weeks later when the sellers started receiving certified mail from an attorney's office  stating the house was scheduled for sale on the courthouse steps( after the short sale settled!) When I called the Richmond Attorney's office,the gal got all snippy with me. I stated please, your office is doing a lot of work for nothing, this home settled by Short Sale three weeks ago. I backed my call up with a copy of the final Hud-1 Statement. It seems the foreclosure department hadn't communicated with the Short Sale Department. I said, by all means your office is welcome to follow through on changing the locks and throwing the new owners belonging in the street. But you better check your records, because that will be a lawsuit that you do not want to get into in the Common Wealth of Virginia!

Drama, Drama, Drama!

 

9:31am • #3
390,697 Points 9 Featured Posts Localism Sponsor Outside Blog

Elizabeth:  Glad you were able to pull that one out.  I heard that Wells Fargo is very quick to move forward with foreclosure, though my local cases indicate anything but.  I have one short sale seller that has been delinquent since April 2008.  He's still living in the home despite several failed attempts at short sale and loan modification.

9:32am • #4
378,351 Points 18 Featured Posts Localism Sponsor Outside Blog

Elizabeth - this is the  scary part. You are working on something, and everything is fine, and they tell you that the sale has been postponed, and than BANG...

I now call the  atorneys to make sure  it has been really postponed.

10:15am • #5
245,859 Points 5 Featured Posts

I've heard others speak of this happening too!  It seems the party of the first part, isn't communicating with the party of the second part, to the detriment of the parties of the third part. . . Aaargh!

Banks and their extraneous entities. . .Ya gotta just love 'em:-(

10:37am • #6
385,409 Points 28 Featured Posts Localism Sponsor Outside Blog

Hi Tammy: Some days I just get lucky, that's all.

Hey Cindy: Bank of America called me this week on a short sale that closed last month. It was the foreclosure department calling. My heart stopped. I thought for sure the guy was about to say a sheriff was on the way because they didn't postpone the trustee's sale, but he was just checking to see if it had actually closed.

Hi Peggy: It's not always over when it records, as you've discovered. I don't know why the departments can't check wtih each other or at least, for crying out loud, check the public records to see if it's already closed.

Hi Chris Ann: I know what you mean. I had a Countrywide short sale seller who hadn't made a payment for 2 years, and the notice of default was never filed.

Hi Jon: Do you have access to public records online in Florida so you could check the status yourself?

Hi Myrl: More often than not, the negotiator closes the file, and that's what triggers action for foreclosure.

sacramento short sale agent

 

 

12:06pm • #7
Outside Blog

Thanks for sharing this with us Elizabeth!

What a story and what a nightmare. It was brilliant that everything worked out so well for you. Good karma!

2:34pm • #8
391,027 Points 1 Featured Post Localism Sponsor Outside Blog

Just another proof that one department doesn't talk to another.

4:45pm • #9
1 Featured Post Outside Blog

That is a great story, Elizabeth. Hopefully you now have a new client for life.

7:45pm • #11
162,386 Points 6 Featured Posts Localism Sponsor

Hi Elizabeth - I'm glad someone knows how to do their job --- one would think with all the computers in the world, it would not be difficult for a Bank to keep their files straight --- but then I have seen a bank, in fact I think it was Wells Fargo -  follow through on a foreclosure here, after they had accepted the payoff...so go figure.  Different departments do not communitcate very well.

8:34pm • #12
150,208 Points 9 Featured Posts Localism Sponsor

Elizabeth - I've heard that some lenders make more money through a foreclosure than through a short sale.  Is there any truth to this?  I'll try to find the blog post that mentioned this.

Here it is...

http://activerain.com/blogsview/1243528/is-the-fdic-killing-short-sales-

11:14pm • #13
NOV
01
385,409 Points 28 Featured Posts Localism Sponsor Outside Blog

Hello Gail: We had a short sale manager from Wachovia speak at our office meeting a couple weeks ago. She said that Wachovia makes more money on a short sale than it does on a foreclosure.

Thanks for the link to the article. I do know that some banks are receiving federal funds and incentives to do a foreclosure. I think it all depends on the bank.

sacramento short sale agent

9:10am • #14
NOV
02

Did that 5 letter word start with a "B"?

5:29pm • #15
385,409 Points 28 Featured Posts Localism Sponsor Outside Blog

No, Jesse, it was a capital T that rhymes with P and stands for pool.

sacramento short sale agent

7:47pm • #16

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Elizabeth-high-rez-nyc Rainmaker_large

Elizabeth Weintraub, Sacramento Short Sale Agent, 916.233.6759, Lyon RE

Sacramento, CA

More about me…

Lyon Real Estate

Address: 2801 J Street, Sacramento, CA, 95816

Office Phone: (916) 233-6759

Cell Phone: (916) 233-6759

Email Me

Broker-Associate at Lyon Real Estate, midtown Sacramento. Selling since 1974. Home Buying Columnist at About.com. Sacramento short sale agent.

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