We had submitted a Wells Fargo Short Sale package through Equator after speaking to the bank at their request. The package included an offer for the home, it was 5 days before the Auction date and even though the bank extended the Auction 2 times,, 1/3 to 1/10 to 1/17 the Investor Freddie Mac still foreclosed on the home.. I spoke to everyone, the seller spoke to everyone and still they chose to foreclose.. Per Wells Fargo Freddie Mac will only withdraw a foreclosure if the home has been short sale approved 10 day prior to the auction date. Has anyone had this happen to them?
Yep - not unusual. Mostly because Freddie and Fannie don't care, now only spend their time lobbying for more bailout money from the feds - could care less about the tax payer (the real investor). No real care is taken to do the best for the investor.
10 days is actually short. I usually run into 20 days or for HAFA much longer. If you think you'd make any headway with Freddie, you probably want the homeowner to call and beg. Sometimes homeowners hit a sensitive spot where banks/investros ignore 3rd parties - tricky - you don't know how the homeowner will play it and he can easily say something to kill the thing quickly.
Another thing you can do is go to a local judge and ask them to postpone the sheriff sale date. It has been effective. My seller used an attorney the last time I did this - and you can get a month or two. Judges like voters better than big banks, often.
There sometimes are good reasons that the investor won't postpone the date - some states/counties penalize them for "arbitrarily" postponing the sale. The bank may be forced to start all over, pay a big penalty, etc. So, it isn't always the bank's fault..
People are always asking for postponement - I just don't see that happen often (after the first 2) and think you have to do some end run to get around this mess.
For a short term "we have an approval but the sale is tomorrow" type of thing, you'd be surprised how often the attorney for the bank will listen to you and postpone the sale by themselves - w/o asking the bank. Worth a shot at times - not your case since you are talking scheduled vs. actual sheriff sale date.
If it is all because of Fannie and Freddie then why can BofA get them post poned in less than 10 days but WF can't? At least they have done it for me. I guess it is just the luck of the draw.
Yes, Freddie Mac forces foreclosures. I just did one and was able to do a rollback. It was through USBank but Freddie Mac was the investor. USBank requested a postponement of the short sale, Freddie Mac approved it 1 day prior to sale.The attorneys refused to stop it because it wasn't 10 days prior. The house went to sheriff sale and Freddie Mac took it back. I was able to convince USBank to attempt to get the sale rescinded. That is done through a rollback which takes about 30 days. Freddie Mac approved the rollback. We are now in the process of the attorney for the bank filing the rescision with the court.. That is the only way we can get clear title to still do the short sale with the homeowner as the seller. You can contact Freddie Mac directly. They were very helpful.
Yes, please read my prior post dated 1/23/12. Email Freddie Mac directly and request a rollback.( Freddie Mac guidelines require the 10 day period). A rollback will vacate the sale and permit the owner to go forward with the short sale. It does take about 30 days for the approval by Feddie Mac. We have had approval for the rollback for a week now. The attorney for Freddie Mac is dragging their feet.
Ooops ,I just saw that it was foreclosed, I just got a listing WF we are just 7 days away from the scheduled TS, I hope we get and extension, in order to save this property.