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It's Not Over Until it is Over

Posted by Connie Gohata on Saturday, August 4, 2018 Under: Short Sale
OK, this is where I start talking about other people.
My short sale went bust on August 2 around 10:30 a.m.  That is when we couldn't stop the sale.  Up until that point, I thought we had a chance.  The bank seemed to be behind us as we gave them everything they asked for (except one thing, which I'll get to in a minute).  The bank said they were escalating the extension approval to postpone the foreclosure sale and they would let us know - and they made it clear there were not guarantees that they would/could stop the trustee sale (that is where they auction off the house to the highest bidder).  We were able to track the auction, online, and yes, it still said that the house was active on the auction list for that morning.
My partner in this transaction, Louis, received a call from someone who was at the auction.  The house was indeed still on the list, and there were active bidders.
Around 10:30, I found out that the house was sold to a third party.  The bank (of America) never got back to me.  In fact, I sent them the sale information after the fact.  They still didn't acknowledge it as of today.
Now we have to mop up the mess.  The for sale sign needs to be taken down, I took the supra lock box off the water pipe, and the big thing - the seller, who is out of town at her mother's funeral - still needs to be told that she no longer owns the house, and that is due to the auction, not the short sale. She'll now have foreclosure on her credit report.
All this time, I was hopeful.  I kept telling Louis, don't give up - as he did give up about a week ago, and turned negative - and I was sure that the bank would rule in our favor.
BUT the biggest lesson I learned - investors have to be vetted better.  The first buyer, an investor, decided very late that he didn't want to buy the house because he wouldn't make enough money.  It took him four months to figure that out.
The second buyer had an acquisition specialist who we were dealing with.  He was great at the beginning, saying once the sale was approved they could close in 10 days.  Then, after we accepted their offer, they starting asking us if the short sale was approved.  Now, I told them we had to start over with the bank and with them as the new buyer, and no, they could not change the name of the buyer during escrow because the bank would then decide they have to start over, again.  
I assumed, wrongly in this case, that a distressed sale investor would know that banks are on their own schedule and they don't suddenly say yes to a short sale.  There are forms and protocols and more wet signatures to be turned in.  Once one form gets to them, they ask for another one - and I don't know why they can't ask for everything at the same time. Sellers don't all have computers or internet - most short sales happen because the seller has no money or at least not enough to pay the bank on a regular basis.  So getting a wet signature is not easy - especially when the only email/internet/scan capability is through a phone.  It usually means a trek to the library or FEDEX store to have them send a scan to me.  AND then the store may format it as a picture instead of a PDF document because they forgot to tell the person at the desk that I need PDF.  
The biggest hole in this entire scenario was the buyer.  Suddenly, last week, the main contact decided to not answer email, text, phone, voice mail.  I needed two important documents from them and their deposit to escrow.  These documents were their current bank statement WITH the account number not blacked out like they did before, and a signature on another document.  I first sent email - no response. Then phone - kept ringing.  Then text - no response.  Voice mail was ignored.  I called and called. Then on Tuesday, after not getting back to me all weekend, he sent a text saying sorry, he was out of the office Monday.  I was thinking - so you don't answer your cell phone when you're not at the office??? 
The bank first said they needed those docs, but I actually pleaded with them (close to begging) to work with us in good faith.  They, the bank, escalated the file, like I mentioned, and gave us no promises that they would stop the trustee sale.
I have been working on this since February, and it is now August.  I spent hours and hours on this, talking to the seller, getting lots of background papers and correspondence from her, driving to the property, driving to meet the seller for a wet signature (several times).  Filling out forms for the first buyer, sending them and getting them signed, organizing everything.  Then doing it again with the second buyer.  I had many exchanges with both banks (yes, she had two mortgages), for both buyers since we had to start over when the first buyer went south.
Every day, my partner Louis called for the latest information, sometimes several times.  That at least kept me on the ball.  But many times I had nothing new to say.
So, there's one thing I hate about short sales.  When the banks don't come through, when the buyers don't come through, many hours, weeks and months of work are for naught - I haven't made any money on this for my 5 1/2 months of work.  I have to make it up on the other sales - and chalk it up to - "It's the cost of doing business."  
And people say we Realtors don't work hard.  Hah!

In : Short Sale 


Tags: "short sale" "foreclosure sale" "trustee sale" 
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It's Not Over Until it is Over

Posted by Connie Gohata on Saturday, August 4, 2018 Under: Short Sale
OK, this is where I start talking about other people.
My short sale went bust on August 2 around 10:30 a.m.  That is when we couldn't stop the sale.  Up until that point, I thought we had a chance.  The bank seemed to be behind us as we gave them everything they asked for (except one thing, which I'll get to in a minute).  The bank said they were escalating the extension approval to postpone the foreclosure sale and they would let us know - and they made it clear there were not guarantees that they would/could stop the trustee sale (that is where they auction off the house to the highest bidder).  We were able to track the auction, online, and yes, it still said that the house was active on the auction list for that morning.
My partner in this transaction, Louis, received a call from someone who was at the auction.  The house was indeed still on the list, and there were active bidders.
Around 10:30, I found out that the house was sold to a third party.  The bank (of America) never got back to me.  In fact, I sent them the sale information after the fact.  They still didn't acknowledge it as of today.
Now we have to mop up the mess.  The for sale sign needs to be taken down, I took the supra lock box off the water pipe, and the big thing - the seller, who is out of town at her mother's funeral - still needs to be told that she no longer owns the house, and that is due to the auction, not the short sale. She'll now have foreclosure on her credit report.
All this time, I was hopeful.  I kept telling Louis, don't give up - as he did give up about a week ago, and turned negative - and I was sure that the bank would rule in our favor.
BUT the biggest lesson I learned - investors have to be vetted better.  The first buyer, an investor, decided very late that he didn't want to buy the house because he wouldn't make enough money.  It took him four months to figure that out.
The second buyer had an acquisition specialist who we were dealing with.  He was great at the beginning, saying once the sale was approved they could close in 10 days.  Then, after we accepted their offer, they starting asking us if the short sale was approved.  Now, I told them we had to start over with the bank and with them as the new buyer, and no, they could not change the name of the buyer during escrow because the bank would then decide they have to start over, again.  
I assumed, wrongly in this case, that a distressed sale investor would know that banks are on their own schedule and they don't suddenly say yes to a short sale.  There are forms and protocols and more wet signatures to be turned in.  Once one form gets to them, they ask for another one - and I don't know why they can't ask for everything at the same time. Sellers don't all have computers or internet - most short sales happen because the seller has no money or at least not enough to pay the bank on a regular basis.  So getting a wet signature is not easy - especially when the only email/internet/scan capability is through a phone.  It usually means a trek to the library or FEDEX store to have them send a scan to me.  AND then the store may format it as a picture instead of a PDF document because they forgot to tell the person at the desk that I need PDF.  
The biggest hole in this entire scenario was the buyer.  Suddenly, last week, the main contact decided to not answer email, text, phone, voice mail.  I needed two important documents from them and their deposit to escrow.  These documents were their current bank statement WITH the account number not blacked out like they did before, and a signature on another document.  I first sent email - no response. Then phone - kept ringing.  Then text - no response.  Voice mail was ignored.  I called and called. Then on Tuesday, after not getting back to me all weekend, he sent a text saying sorry, he was out of the office Monday.  I was thinking - so you don't answer your cell phone when you're not at the office??? 
The bank first said they needed those docs, but I actually pleaded with them (close to begging) to work with us in good faith.  They, the bank, escalated the file, like I mentioned, and gave us no promises that they would stop the trustee sale.
I have been working on this since February, and it is now August.  I spent hours and hours on this, talking to the seller, getting lots of background papers and correspondence from her, driving to the property, driving to meet the seller for a wet signature (several times).  Filling out forms for the first buyer, sending them and getting them signed, organizing everything.  Then doing it again with the second buyer.  I had many exchanges with both banks (yes, she had two mortgages), for both buyers since we had to start over when the first buyer went south.
Every day, my partner Louis called for the latest information, sometimes several times.  That at least kept me on the ball.  But many times I had nothing new to say.
So, there's one thing I hate about short sales.  When the banks don't come through, when the buyers don't come through, many hours, weeks and months of work are for naught - I haven't made any money on this for my 5 1/2 months of work.  I have to make it up on the other sales - and chalk it up to - "It's the cost of doing business."  
And people say we Realtors don't work hard.  Hah!

In : Short Sale 


Tags: "short sale" "foreclosure sale" "trustee sale" 
null

About Me


Connie Gohata RealtorĀ® and RE Investor Short Sale and REO Specialist Regular Sales, Distressed Sales CA/BRE #01822665 Phone: 714-553-9146

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