Watch out for the Mortgage Insurers who may FORECLOSE without the bank's knowledge...

Recently, I was working on a short sale file with BofA. We had been working on it for sometime, so we were checking weekly to make sure that there was not a trustee sale date.

They ensured us everytime that there wasn't one. The file had finally gotten into the hands of upper management and we were expecting approval very soon.

One day I got a call from a local agent saying that the home had gone to foreclosure and we needed to remove the lockbox.

I checked again several times with BofA to see if it had gone to sale and if so, how??? In the process of doing our research we come to find out that Fannie Mae was foreclosing, so we contacted the buyer's agent, took our lockbox off and wrote it off. We tried to find out what we could have done differently, so that this wouldn't happen again and the only answer we could get was to contact the bank. (Lot of good that did) I would still like to know if anyone has a better solution...

About a week later I got an email from equator requesting my response to their counter...I figured what the heck and just accepted...then I get a call from an agent that was assigned to do an interior BPO... By now I am thinking, "WHAT THE F&*#^ IS GOING ON"???

Yesterday I checked again with BofA and was told that they did not want to foreclose because of the fact that they still wanted to try and get the short sale done.

Of course now the buyer is gone and I had to put it back on the market to try and replace the offer, but in over 3 years of working short sales, I have never had this experience.

I would really like to hear from anyone who has had a similar situation and how they dealt with it. ARE WE GOING TO SEE MORE OF THIS IN THE FUTURE???

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Comment by Julie Vrigian CSSG, CSSP on August 24, 2010 at 2:34pm
That is really nice to hear. I love helping people stay in their homes.
Comment by James W Standart on August 24, 2010 at 2:07pm
The one deal I worked on was where the Homeowner had been working with the mortgage company pursuing a Loan Modification, but in the middle of it, the foreclosure happened. Kind of like your deal. I was able to get them back in touch with the Lender to restart the Loan Modification efforts.
Comment by Julie Vrigian CSSG, CSSP on August 24, 2010 at 2:04pm
That is interesting...I have been doing assignments for Titanium for about 2 or 3 years now...not so many recently as I haven't had the time. I had not heard of them offering the homeowner to buy their home back.

How are they able to get the credit to buy the property after it has foreclosed?
Comment by James W Standart on August 24, 2010 at 1:58pm
The company I work with is Titanium Solutions, found at www.titaniuminc.com. It is a pretty sweet deal. They pay you to obtain information for Lenders by visiting people in their homes. They need people locally all over the country. Primarily they are looking for information to assist in obtaining Loan Mofications for people, but I have also had several assignments lately regarding foreclosures that the bank would like to sell back to the homeowner. The leads are also good sources for Short Sale opportunities.
Comment by Julie Vrigian CSSG, CSSP on August 24, 2010 at 1:57pm
Thank you soooo much!
Comment by Terry L. Osburn, SFR on August 24, 2010 at 1:50pm
brian.t.moynihan@bankofamerica.com

Email Brian w your loan # , be concise and to the pt w dates of your situation/show whom you have spoken with
They will assign someone usually 72 hrs to assist you.
Comment by Julie Vrigian CSSG, CSSP on August 24, 2010 at 1:07pm
Terry, thank you for all your feed back on this, I really appreciate it. Do you happen to have a number for the office of the president?

I know what you mean about the lack of communication between dept. We have spent numerous hours on the phone with them on another file that we trying to stop the sale on at 10:30 today....

A latte sounds pretty good to me too!
Comment by Terry L. Osburn, SFR on August 24, 2010 at 1:01pm
Interesting...sounds as if there is some real communication problems... What I have found with BofA has been a lot of inconsistency in communication among the inter depts..... I have had short sales with BofA that went real smooth.....Then I have had those where there was a communication breakdown where they just could not recover and had to bring in the office of the president to see if they could straighten out.
Going thru a communication breakdown on one now.....they forgot about my file....changed negotiators about 4x since the 1st approval but I was able to make contact with a good source who appears to have helped turn things around.
I think at this stage I would bring in the Office of the President for more than one reason...... Ask them to do a thorough evaluation of their records and whether they would assign a negotiator from their dept to assist you the rest of the way with this file.
I am trying to figure out the strategy of the MI forcing sale.....That would surely bring in less funds, be more costly, thus cause the MI to pay put more.......???.....I need to go get a latte to get my head clear......
Comment by Julie Vrigian CSSG, CSSP on August 24, 2010 at 12:41pm
There was no NOTS delivered to the homeowner in any form...Even BofA has been dumbfounded as to why the mortgage insurer would try to foreclose ahead of them.

Here's the kicker...After telling me to continue with the short sale, which I did, including getting another buyer, since we lost the one we had, BofA is now telling me that the property went to sale on the 10th as scheduled, which it didn't.

I am now in the process of trying to get them to accept the offer that they told me to get and they are not cooperating...I am not sure what to do at this time, to prove that the home did not sell...Any feed back would be appreciated!!
Comment by Terry L. Osburn, SFR on August 24, 2010 at 12:19pm
So the county records never showed a NOTS? There was not a notice on the door? I usually will have the title company check periodically......There was one with BofA back in January that slipped thru the cracks and I found out very late in the ballgame about it....about 1 week prior to sale...BofA stated they would not stop it......Even foreclosure radar did not have a record of sale(FOUND out there is some way these guys can file and not show up immediately even in tax records)......Called the number on the NOTS letter post 1 day of sale and found out it had been delayed.....So Called BofA back and asked them if this meant they will work with us now....negotiator did not have a clue the sale had been postponed and became very haughty on the phone and said no she already told me what they would take and nothing less and hung up...... A few hours later I got an urgent email with short sale approval letter attached..........We closed 30 days later. Fortunately the buyer decided to hang in there for a bit longer.

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