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Short Sale Going Bonkers... Need Advice

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

We got this listing and thought that we would just find the Buyer and run it with Boa VIA Equator, and be done with it.

And then the Seller has received a letter that she was chosen to participate in Co-Op Short Sale Program, and there were quite serious perks to jump on it. No deficiency, stopping foreclosure, $2,500 allowance...

So, she filed her paperwork, we did ours and submitted it all to those Dignified Solution's people. They acknowledged that we are OK. We had a bunch of showings, reduced the price a few times, and the contract came at $80K.

Long wait from Co-Op people, can do anything with Equator, as they are supposed to initiate it, a few complaints, and finally we got to Equator. In the process, being frustrated with no timely response, I asked if we could switch to a regular short sale and not deal with this Co-Op BS. The answer was «No». They «had» the loan, and we could not bypass them.

The summary judgment came and the attorneys and the judge agreed on 90 till Foreclosure Auction date. Notified Dignified Solutions, no problem, we have plenty of time.

Then they come and tell us that we need to list it at $99K. Well, we have accepted contract for $80K, and $99K is quite overpriced. Asking them whether they insist on cancelling this contract and put it back on the market for $99K, which was the last listed price before accepting the $80K offer.

They don't recommend it and a week or so later again tell me that they need it to be listed at $99K. It is like talking to the wall. They keep repeating things as if they did not hear you.

Meanwhile, there is a Fllorida incentive, and Sellers under certain conditions are guaranteed $5K to $20K. Calling them, they check and say that the Seller qualifies, and is entitled to get $8,911. We are pushing the Co-Op and Negotiator to use it to so that they agree to drop the price at least by this amount. Sending they the proof that similar houses start from $53K...

They say it can be done...

Then there is a long drought in the communication. Nothing. They do not respond to e-mails, do not answer the calls and do not return the calls, Equator is wonderfully dead...

Tweeting BoA. Immediately someone calls, promises to investigate, and next day I get a conference call from Dignified Solutions and Negotiator for BoA. Sounds like they were listening for the first time.

Again the same crap about the investor (Fannie Mae) needing certain amount to clear, and I finally able to get that figure from the negotiator. We agree on preparing new HUD using reverse engineering from the Net to Lender considering crediting the Lender with the incentive amount.

They say they would open a task in Equator for us.

Getting the closing agent to do reverse engineering, and the gap is about $4,500. Before I call the Buyer's agent to ask if they would take it, the task is open and it ia a counteroffer, which is very different from what we have discussed. If we accept it, then the gap is about only $500.

We accepted it, even though there were some mistakes in the way they computed the taxes and other small stuff.

It was November 21. Did not hear from them. And foreclosure is coming. Sending e-mail to Negotiator, sending e-mail to Co-Op Transition Advocate screaming «URGENT».  Co-Op comes back next day. They can't do anything. Fannie Mae will not stop the foreclosure sale.

Tweeting BoA, they call back next day, nothing can be done.

House foreclosed December 12. Looking at the documents sent to the Seller, it sounds like as long as you follow the program's guidelines, it should not be foreclosed.

Does anyone has the same experience? Can anyone give me the contact at Fannie Mae? Has anyone ever made them vacate the Foreclosure? We did it once with Chase, but never with BoA/Fannie Mae...

Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

Sounds like a mess. I cant help in this case but I am guessing since you did not do what they asked on the lisitng price they cancelled it from the program and thats why it foreclosed.

Dec 21, 2011 05:24 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Chuck - I sent them the proof that it was listed at $99K, but the only offer we got, came at $80K. I also asked them whether they wanted me to say "no" to the Buyer and put it back at $99K. They did not say "Do it".

 

Dec 21, 2011 05:29 AM
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Jon

Sometimes I get such boomerangs shot at me when it comes to short sales. Confusing

Dec 21, 2011 11:41 AM
Christine Bohn
RE/MAX Professionals - Gainesville, FL
The Bohn Team, Gainesville FL

Jon - I have one going on now that sounds as hopeless as yours.  Mine is Wells Fargo. Private mortgage and Equator negotiator has advised that "short sale is no longer an option".  Only foreclosure.  Yes, Equator keeps assigning me tasks.  NO ONE at Wells Fargo will return calls made by the homeowner.  Negotiator cannot speak to owner, only me.  Advises me that owner call Brunson Burris at Wells Fargo, their ONLY contact allowed.  Yet since Nov 16th....he will NOT return calls to the homeowner.   

Dec 21, 2011 01:11 PM
Miriam Bernstei
Rochester, NY

I have had exactly the same experience with Dignified- talking to a wall.  Fannie Mae is rigid and Dignified could not get them to stop the foreclosure..... it is so interesting that I had the same set of circumstances.....wonder what gives and why they make anyone go through the process if they know Fannie Mae won't stop the foreclosures.

Dec 21, 2011 01:24 PM
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty

I think they are setting things up so there is no way to achieve success.  They make all the promises, knowing they will not have to keep them, because there is no way for the homeowner and buyer to jump through all the hoops in a timely manner.

Dec 21, 2011 02:03 PM
Dave Sullivan
Real Estate One - Birmingham, MI
Michigan Realtor with an investor viewpoint

Excellent information I will forward it if that is ok? thank you!!!

Nov 05, 2012 04:36 AM