Fannie Mae Will Send Your Home to Foreclosure Instead of Granting a Short Sale

By
Real Estate Agent with RE/MAX Gold DRE #00697006

You can hire the wrong short sale agent. Especially in Sacramento where lots of agents are jumping on the short sale bandwagon. If you do, Fannie Mae will send your home to foreclosure instead of granting a short sale. It's the way of Fannie Mae.

But first, let me share with you that a client said the nicest thing to me yesterday. Really touched my heart. We closed his short sale in Gold River in 8 calendar days. Actually, we closed one day early, because we were up against the sale date and there was no way to postpone the auction. I prefer to be early than late. He said: "Choosing you as my agent goes down as one of the smartest things I have ever done."

I say we closed his short sale rather than I closed his short sale because, as a Sacramento short sale agent, I realize that no wo/man is an island. It takes a team to close. Without a good buyer's agent on the other side of the transaction, a seller could be doomed. That's why I help my sellers to carefully choose the buyer and the buyer's agent we work with. If a seller were to choose the wrong buyer and that buyer doesn't perform, the seller could be headed into a trustee's sale and not to closing.

This particular seller tried to do a HAFA short sale in the middle of this transaction. I called him when I found out and asked why. I discuss HAFA upfront with my sellers to determine whether they qualify. Remember, being eligible for HAFA and qualifying for HAFA are two different and distinct things. And this transaction was a Fannie Mae short sale, which would have made it a Fannie Mae HAFA short sale -- had the seller gone that route.

I told him not to do it. I urged him to talk to his lawyer. He was too close to the foreclosure date. It wasn't worth going after $3,000 if it would have meant going to foreclosure. Fannie Mae has a procedure by which they choose if it's more profitable for them to go to foreclosure and, if they are very close to the foreclosure date, they will choose foreclosure. Yes, your government, which basically runs Fannie Mae now as a GSE, wants families to lose their homes to foreclosure. It's easier. It's more profitable.

Don't believe me? Don't just rely on my years of experience with Fannie Mae short sales. Check out this August 18th piece from the Detroit Free Press: Fannie Mae Pressures Banks to Foreclose, Contrary to Promises to Keep Families in Their Homes.

We received short sale approval on the 15th of August from Bank of America. Our closing date was the 24th of August. Nine days later. The buyer elected to get a loan, too, when informed of short sale approval. I about had a heart attack. But you know what? It closed. It closed with a loan.

And people say we short sale agents can't pull a rabbit out of our sleeves. Hey, Rocky! Yup, nothing up my sleeve. Presto, chang-o.

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Weintraub and Wallace Realtors

 

 

Elizabeth Weintraub reviews

 

 

 

Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

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Re-Blogged 1 time:

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  1. Chris Ann Cleland 08/28/2011 08:19 AM
Topic:
ActiveRain Community
Location:
California Sacramento County Gold River
Groups:
California Short Sales, REO's, and Foreclosures
Diary of a Realtor
Lyon Realtors
Posts to Localism
Short Sales Specialists
Tags:
fannie mae short sale
hafa short sale
fannie mae hafa short sale
sacramento short sale agent
postpone auction
short sale agent
elizabeth weintraub

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Rainmaker
159,361
Suzanne Gantner
Sky Realty, Central Texas Real Estate - Round Rock, TX
GRI, E-Pro, SRES, SRS, ABR

These people are all way scary.  How they justify things is frightful...I feel sorry for homeowners who could short sale and are forced into foreclosure...really sad.

Aug 24, 2011 02:56 AM #1
Rainmaker
636,567
Mary Douglas
United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO
REALTOR, Red Feather Lakes, Colorado

Elizabeth, more than once, I come over to your posts and just shake my head in disbelief- thanks for the education and presto-chango!  you're seller-client was absolutely right. 

Aug 24, 2011 04:05 AM #2
Rainmaker
287,592
Barb Van Stensel
Chicago, IL

Been there and I ran the numbers and saw the it was more profitable for Fannie Mae to foreclose upon the homeowner then to approve the short sale!  I ran the analysis, talked with the attorney, and we all had bets on it.  Sure enough, foreclosed.  Back on the market for $1,000 less then my offer for a short sale but $50K higher then any other similar short sale that did close in this development and $20k LESS then a standard sale.  Yup, Fannie thought that "she" would net more but legal fees incurred, stainless steel appliances now gone (which I didn't know about) and a 3.5 closing cost credit at a selling price $20K less then what I had as a short sale plus the legal, the incentives ....

And the government wants to know why more are not pursuing the short sale route!  When people read these types of stories ... they just assume but what they do not know nor understand is that each file, each mortgage has it's own story and it's own situation and until looked at nobody knows until Fannie says "take a hike!"

Aug 24, 2011 04:57 AM #3
Ambassador
3,246,339
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

"Choosing you as my agent goes down as one of the smartest things I have ever done."   That's a ringing endorsement if I ever heard one. 

Aug 24, 2011 05:31 AM #4
Rainmaker
509,408
Jim Patton
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties

Elizabeth when can expect to see your new profile picture of you with the cape and the big red "S" on your chest?  Or would it be "SS" ?  Great job and your client was lucky to have you.

Aug 24, 2011 09:21 AM #5
Ambassador
305,612
Linda K. Mayer
License # 01767321 - La Verne, CA
Realtor, SRES, SoCAL, A REALTOR YOU CAN TRUST

Elizabeth, You always give the greatest advice and links to back everything up.  Thanks!

Aug 24, 2011 09:45 AM #6
Rainmaker
2,191,704
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Hey Suzanne: Yes, Fannie Mae short sales are way scary.

Hi Mary: So, when you want to read something positively crazy and insane, you pop over to my blog? Is that what you are saying? Hahaha. Guess I do not disappoint.

Hi Barb: They have all sorts of strange ways of computing profit. And it makes no sense to us mere mortals.

Hi Chris Ann: I was very pleased with that my client was happy. Having happy clients is important to me.

Hey Jim: I think I'd rather have the SS on my head. Maybe on my forehead?

Hi Linda: Thanks for stopping by. Always nice to see your cheerful face.

Aug 24, 2011 02:09 PM #7
Ambassador
2,330,926
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Yes, the other fact is that they will only grant 30-day extensions.

Aug 28, 2011 08:22 AM #8
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