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Short Sale Challenges

By
Real Estate Sales Representative with Windermere/Florence Real Estate

If banks wonder why so many short sales fail, they might begin by looking in the mirror.  I was approached several days ago by a homeowner in her late 70's who just received two letters in the mail.  The first letter said her request for loan modification had been denied. The second letter said the trustee sale was scheduled for June 30th, just four weeks away.  Her husband, also in his late 70's, suffers from dimentia, paralysis from two strokes, and had been scheduled for cancer surgery the same day as the trustee sale, now less than four weeks away.  I advised her a short sale may be the best course of action, if we could convince the lender to defer the trustee sale, they would most likely realize a smaller loss over a foreclosure.  This would allow them sufficient time him to recovery from surgery and plan their 600 mile move to be closer to their daughter.

I faxed her authorization to release information to the lender and called the next day to confirm receipt and initiate the process.  The lender advised me it can tale up to 48 hours for the authorization to be entered into the system.  I called the next day, only to be told the authorization had been received but was now in legal review which takes three to five business days.  They advised me that they could not postpone the June 30th trustee sale after June 20th.  Today is June 9th.  Legal review of the authorization letter could take until June 15th.  This gives just 5 days, and nothing is likely to happen in five days.

The loan originated by Wachovia Bank, now Wells Fargo.  If anyone has had recent experience with Wells or Wachovia with a similiar situation, your advice would be much appreciated.

 

Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Steve - It sounds like she needs legal advice, not a short sale right now.  Surely there is some law on the books in Oregon that allows a trustee sale to be deferred due to illness.  Failing, that, bring this to the attention of the media.  What happened in this situation?  It's now almost a month after you wrote this post.

Jul 07, 2011 01:23 PM