"I am a Seller trying to avoid foreclosure. My agent has a buyer and his offer is with the lender from last seven months. Now the lender told us that Fannie Mae (the investor holding the loan) refused the short sale offer and the house is going to foreclosure early next week. What can I do to stop this?"
Diego's lender’s appraisal shows the house is worth $225,450. The offer submitted is for $235,000. I told Diego to call his lender and tell them that it is unlikely they will receive and offer for $235,000 after the foreclosure is processed. The Lender to Diego, “We or some of our investors will buy it, but most likely for a lesser amount!”
Diego does not want a foreclosure on his credit report. Diego asked me point-blank, "Is there anything I can do to stop the foreclosure now?
Diego gave me a bunch more details. He kept great records, unlike is agent who kept nearly zero records. I will relate them here and then tell you what I recommend that he do. He told me the loan is owned by Fannie Mae, and a third party lender is “servicing” the loan for them.
Here is what I recommended that he do:
I have negotiated lots of short sales. The only reason a lender should ever turn down a short sale is when their numbers (from an actuarial viewpoint) show that they will reduce the investor's losses with a foreclosure. That has always been the case on any short sale I have ever negotiated. (Or I should say most of them. Some have been rejected for other reasons, but they are almost always monetary reasons.)
Here is exactly what I would do if I was is the same position as Diego.
Step #1: Call up the servicer of the loan and demand a detailed written letter explaining why they are declining the short sale offer.
Step #2: Write down what you project your personal damages are going to be if the property is foreclosed upon instead of sold as a short sale.
Step #3: Again, call up the servicer (the company handling the loan for Fannie Mae - Remember, they are not your lender. They are paid by Fannie Mae to do their job in a competent manner.) Tell them if they reject the short sale for no valid reason and the house is foreclosed, then you will be suing them for those specific damages you drew up in Step #2.
This seems extreme and somewhat insane, but maybe just what it takes to get the bank/investor to approved the short sale.
I will go into more details about potential damages and the basis for a lawsuit within my next couple posts.
Thinking about a short sale? I can help you short sale your property and never pay the bank another dime. Send me an e-mail at utahhomesaver@gmail.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call Dave at 801-651-0707.
Thinking about a loan modification? Our Utah Home Saver Loan Modification Kit has the instructions you will need to get a loan modification approved with your bank. This is a FREE for you, all you have to do is call or email us today.
Thank you for taking a few minutes of your busy day to read this, Dave Forsberg.
Dave is a Realtor with Prudential Utah Real Estate - Bountiful.
Phone: 801.651.0707 Email: utahhomesaver@gmail.com
Dave Forsberg and The Utah Home Saver Team specialize in helping Davis County, Utah Homeowners short sale and never pay the bank another dime. Bountiful Loan Modification Help, Bountiful Short Sales. Bountiful Short Sale Realtor. Bountiful Realtors. Bountiful Realty. Bountiful Realtor. North Salt Lake Short Sales. Woods Cross Short Sale Realtor. Centerville Short Sales. Farmington Short Sale Realtor. Fruit Heights Short Sales. Kaysville Short Sales Realtor. Layton Short Sales. Layton Short Sales Realtors. Syracuse Short Sales. Clearfield Short Sales Realtor. Davis County Utah Realtor. Stop Foreclosure. Stop Utah Foreclosure. Avoid Foreclosure. Avoid Utah Foreclosure. Foreclosure Alternatives. Utah Foreclosure Alternatives. Bountiful Homes for Sale. Bountiful Houses for Sale.
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