Bank of America took so long to get the short sale approved that Fannie may has ordered a foreclosure on the home even though we have a buyer!
Our office works on Short Sales in Southern California and have we have seen a trend in the distressed property market. Fannie May is cleaning house and we have mixed feelings about it.
One one end we have talked to people who are still given false hope that there modification will go thru. Even though there is not reason for the bank to accept low interest payments. They are still let to believe that there is hope. On the other end delays in short sales are causing Fannie May to just foreclose even though they have come out with new programs to speed up foreclosure.
On one end they say something and on the other they do something else. I will give you a real life example with Bank of America. We were working on a short sale with Bank of America (servicer), with Fannie May (investor) for over 6 months. Bank of America took so long getting getting things done (documented proof) that even though we had a buyers who were willing to pay full price the property is still going to be foreclosed.
After SIX months, Bank of America said the offer we had was not high enough! Fine we got another buyer who was willing to pay 20k MORE. Well you would think all we had to do was just change the buyers name. Well NO, we had to “start over” as the rep told us too. We had to submit the packet over on the online system (Equator) and upload all the docs. Three weeks past and Bank of America had still not completed their tasks! With a sale date looming we were told that we had to close in one day ! One DAY. Bank of America basically said OKAY WE WILL APPROVE THIS but the investor wants to close the buyer to close escrow in one day. Just for readers not familiar with Real Estate transactions, this one day close is IMPOSSIBLE & IDIOTIC. Even with a cash buyer you cannot close in ONE DAY!!! WOW
Fannie May wanted something done with the property, but because of Bank of Americas procedures a simple task took 7 MONTHS! – even though we had a buyers who were willing to pay more, they STILL MADE US WAIT, THEY COULD NOT JUST CHANGE THE NAME AND AMOUNT, WE HAD TO START OVER!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! AHHHHH
Well Fannie May didn’t care whose fault it was so they are foreclosing tomorrow. Our client has an illness and still tried to do the right thing by trying to work with the bank. But even with all our efforts time ran out. That is why I tell people not to waste time with loan modifications, their is so much BS to work thru to get them a short sale that we need all the time we need.
Our team has closed over 230 short sales and the government is getting ready to foreclose on as many homes as possible by the Summer, Many of our team members are all having problems with Fannie May owned loans. Fannie May is tired of giving BANKS the time to pretend to help people with loan modifications.
People need to realize the BANK HAS NO INCENTIVE TO MODIFY LOANS! When they do modify a loan its only for a few years. Think about it, after 5 years , do you still think we will have programs to help people short sale? NO ! As you I have explained today even in this case where the banks ”negotiator” dropped the ball , the odds of a short sale are 95% higher than a loan mod. Chances are if we had a few more weeks we could have avoided foreclosure but of course everyone is trying to modify.
Michael-Edward Cruz 951-572-2789 760-689-BANK
