Short Sale gets Approved and then Foreclosed

By
Real Estate Sales Representative with Realty Professionals Heartland

I have had enough of BOA. It has been a nightmare the last ten months working this short sale file. I have gone over hurdle after hurdle. Not a 300 meter hurdle race how about a 300 mile hurdle marathon. I received the highly anticipated email that the file has been approved. The seller had to agree to a 25k promissory note which was done. One week later on May 10, 2010 the property was foreclosed on. How can this be? I emailed BofA and they emailed Freddie asking them to resend the loan in order to get the closing done. I recieve this email today.

 

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"Although this file was approved it appears as though the investor is not going to rescind the foreclosure and the deed has been filed. I have been advised that you will need to contact the investor about getting the property.  The file was approved prior to the sale date and upon a request to postpone being submitted, it came back denied. "

Bank of Amercica

 

 

This response says the letter came back denied to postpone the foreclosure but yesterday there was no response to the request submitted, I believe they just sent it back today along with the them saying the investor will not rescind.I called Freddie and Rodney said,"Oh now their putting this on us!" "Call Home Steps Department @ 1800 972-7555 and hit prompt 1,2,6. You will have to speak with them now." I called and spoke with Lovern, they set up an inquiry and this is suppose to go to corporate. She said they were not allowed to give out time frames as to when we would get a response. I was given a reference number and that is it.

 

I have closed 100% of my short sales when they have had an offer submitted, no matter what hell and furry it caused in my life, it is about taking care of my clients. This deal looks real dead to me, even my broker said so. I don't accept that answer! He was able to get one rescind because the foreclosure was not in the paper properly. Missouri is a non redemption state. My second job is a Home retention specialist and many assignments are going to homes after foreclosure to qualify them for reinstatement. What gives here? I left messages for higher up in BofA but has a 24 hr turn around response. The seller has been calling BofA as this is very detrimental to him. He wants to speak with a lawyer about his options. What about us Realtors, are we do nothin when I (the listing agent put 11 months of time, energy and money into this listing. 

 

The Short Sale is approved with a closing date before June 29 2010. how can the foreclose on it and then not be willing to fix it. I would like any and all comments. Has this happened to any of you? Any Advise on how to save this deal? 

 

 

Comments (3)

Connie Winstead
Nancy Puder & Associates - Arroyo Grande, CA
San Luis Obispo County CA Real Estate Agent

I waited 7 months for approval on a B of A short sale.  They are the worst!  They countered way above market value and my buyer walked.  I also lost my buyers listing on their current home.

I had three buyers all short sale listings ... two out of three closed in a reasonable amount of time, but not the one with B of A. 

What a complete waste of time, money and energy.

May 13, 2010 08:57 AM
Katherine Fornale
REMAX REALTY 9 - Howell, NJ
SFR, GRI

I think that BoA is just too big to handle all of their departments.  They bit off more than they could chew when they took over the other banks.

May 13, 2010 09:02 AM
Laurie Clark
Realty Professionals Heartland - Lee's Summit, MO

They recorded the Foreclosure and bought it back for 324k when the offer was for 340k and a 25k promissory note! Do they make more money when the foreclose?

May 14, 2010 06:23 AM