This article is a continuation of one I posted several months ago with some updated information. To read the original article visit:
http://6fd70e2.activerain.com/post/1576094/fannie-mae-no-longer-postponing-foreclosure-auctions-bad-news-for-short-sales
We just had another Fannie Mae approved short sale go to foreclosure after FNMA approved it. The buyer was even done with inspections and appraisals. We only needed a few days for the file to exit final underwriting. Fannie wouldn't do it. They took it back at foreclosure. We were working with Metlife aka First Horizon/First Tennessee to request a rescission of the foreclosure auction due to the circumstances. After pushing and pushing, Fannie Mae contacted me directly. They said I was welcome to return their call but Metlife was correct, they were NOT reversing the sale.
I just got off the phone with a rep at Metlife that I worked with ages ago. I called him and said, "I know this is not your file but I need help, why won't they postpone these sales?"
He said it was a new directive that came out from Fannie Mae on August 1, 2010. If the buyer can not close before auction they won't postpone the sale. They will just take it to auction. Since he has no motivation to lie to me as this was not his file, I tend to believe him. Coincidentally this was the same date that Fannie started to participate in HAFA. Hmmmmmm
Lesson: Buyers must close on Fannie files before the foreclosure auction. If you are getting close to an auction date get everything done for the buyer you can before the approval comes. They may want to even finish inspections or appraisals a head of time. I can not tell you how disappointing it is to watch your commission checks simply disappear overnight.
Hopefully this helps some of you out there avoid the same pain we just went through.
Matt Side
Alliance Short Sales
www.AllianceShortSales.com
Follow Me on Twitter: http://twitter.com/MattSide
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Based in Spokane, Washington Alliance Short Sales offers short sale services in multiple states around the U.S. With a current network of agents located in Washington, California, Idaho, Nevada, Arizona, Florida, Tennessee, Georgia, Ohio, and Virginia, Alliance negotiates short sale real estate transactions with lenders on behalf of agents without charging a fee to the agent or the seller. Because their fees are paid at closing out of the net proceeds to the lender, Alliance creates a beneficial outcome for all parties involved. For additional information about how you can work with Alliance Short Sales, please visit our website at www.AllianceShortSales.com.
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