Banks refuse short sales and foreclose anyway.
Unfortunately, this seems to be an increasing issue over the past 30-60 days here in Las Vegas, at least according to a lot of agents that I've been in touch with.
Specifically, Bank of America has been the bank that all of these agents have had this happen with. They all seem to be Las Vegas Short Sales that have been in the pipeline for over 8 months and were either Fannie Mae or Freddie Mac. They were also deals that were forced to be put into Equator to finish them out with many of them being told "approval" was coming any day. A few had even received an actual approval letter on the day of the sale.
Ironic how this is happening while we are being told the banks favor short sales over foreclosures and that short sales will become easier, etc...
In each case the bank tells the agents they are postponing the foreclosure sale date, even up to the 2 days before, etc and then BAM! Foreclosure sale takes place anyway. Within 2 days the short sale agent is called by an REO agent saying they have been assigned the property.
Now, that seems to be a pretty fast turn around to the REO agent here in Vegas considering there are tons of other homes sitting vacant that were foreclosed on months ago that are still not assigned to REO agents. Seems like the banks or investors made a decision to foreclose quite a while back on these short sales, but left the agents, buyers and sellers believe they would short them.
This is why there are so many agents that won't work with banks like Bank of America and why many agents will not do short sales at all.
It is very stressful and a huge let down for all involved especially the seller, but this is why it is so important to let the buyers and sellers be fully aware that this still can happen even when the agents are doing there job all paperwork is order and calling these banks every few days.
Thankfully, there are more Las Vegas Short Sales that do close, but it is still of no consolation to the short sale sellers that get foreclosed on.
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