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Old 04-09-2011, 08:22 PM
 
3 posts, read 51,489 times
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Hi:

Was looking for some advice on both the process of buying a foreclosure and anyone's experience with HomeSteps, the Freddie Mac foreclosure sale program.

I am attempting to buy a home in MA. We were supposed to close at the end of February but a day before the closing, Freddie Mac's atty, a MA law firm with an atrocious reputation, called and abruptly stated that they would not be closing and requested an extension. We granted a four week extension period. The seller's atty stated that it was a simple delay. After pressing we learned that Freddie Mac was still just awaiting a Power of Atty signed by the lender on the foreclosed mortgage. We've been waiting for that one document ever since. We are approaching the end of our second extension on Tuesday and have incurred $1,300 in rate lock fees should we close this loan.

My mortgage broker who just happens to work for the same company that was the foreclosing lender did some digging at his company. His company's REO dept seem surprised that Freddie Mac were waiting on a POA from the lender since Freddie is the investor and owner of the property, my lender is just the loan servicer.

I am have been informed by Freddie's atty that they received an executed Foreclosure deed from the foreclosing lender but are just waiting for the POA. Anybody familiar with the process of what the mortgage loan servicer must provide in terms of documents to Freddie Mac in order for them to then sell through the HomeSteps program?

Very confused here in MA.

Thanks
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Old 04-11-2011, 06:16 AM
 
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Keep us informed of your progress. I'm buying a Freddie Mac foreclosure in MA as well.
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Old 04-11-2011, 07:31 AM
 
Location: Richardson, TX
10,119 posts, read 16,716,797 times
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Could they be waiting for a Warranty Deed or Quit Claim deed?

I don't know Mass. at all, but in Michigan and Texas you have to foreclose in the mortgage company name (foreclosure deed) and then quit claim deed it over to Freddie Mac.
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Old 04-11-2011, 10:41 AM
 
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The attorney for Freddie Mac claims they have an executed foreclosure deed but just lack the Power of Attorney, presumably giving them the ability to record the same at the registry. The alleged delay is just because the loan servicer is "backlogged" on these types of requests but I find that hard to believe as we approach 60 days past original close date. I have point-blank asked the seller's attorney if this is a MERS issue and have been told on multiple occassions that no it is not but in the back of my mind I still think this may be somehow effected by it. Our close date was moving along swimmingly until the Feb 16th decree from MERS for lenders to stop foreclosing in their name on Feb 16th after the NY bankruptcy ruling went against MERS right to foreclose. In addition, Freddie Mac issued a similar decree effective April 1st stating that the loan servicers cannot foreclose in MERS name only in the lenders name and that all transfers had to be recorded.

Bedford - be prepared for these twists and turns. In addition, if you have a certain law firm in Newton, MA representing Freddie Mac be very on guard and ready to investigate second guess anything coming from their side.
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Old 04-15-2011, 12:58 PM
 
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If you post city,county,book and page of most recent deed I will get you a link from the registry of deeds and we can see what has gone on with the title.
I think all mass registras have free access.
What you have stated makes me wonder about quality of title.
It just does not ring true of a clean foreclosure to be waiting on a power of attorney.
I am guessing the property may be part of the failed private mortgage backed securities that Freddie purchased last march.

Quote:
Originally Posted by NewHomeOwnerMaybe View Post
The attorney for Freddie Mac claims they have an executed foreclosure deed but just lack the Power of Attorney, presumably giving them the ability to record the same at the registry. The alleged delay is just because the loan servicer is "backlogged" on these types of requests but I find that hard to believe as we approach 60 days past original close date. I have point-blank asked the seller's attorney if this is a MERS issue and have been told on multiple occassions that no it is not but in the back of my mind I still think this may be somehow effected by it. Our close date was moving along swimmingly until the Feb 16th decree from MERS for lenders to stop foreclosing in their name on Feb 16th after the NY bankruptcy ruling went against MERS right to foreclose. In addition, Freddie Mac issued a similar decree effective April 1st stating that the loan servicers cannot foreclose in MERS name only in the lenders name and that all transfers had to be recorded.

Bedford - be prepared for these twists and turns. In addition, if you have a certain law firm in Newton, MA representing Freddie Mac be very on guard and ready to investigate second guess anything coming from their side.
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Old 04-19-2011, 08:50 PM
 
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As a former Licensed Mortgage Broker, Mortgage Banker, Whole Sale Lender, Licensed Realtor, RE Investor, and RE Developer I will caution on the side of what NEWHOMEOWNERMAYBE was alluding to that the Title could have been delayed by the fact that the Forclosure Deed was not completed, filed, and Recorded in the Court House. There could still be "Cloud on Title," which means that the Bank i.e. Seller's Forclosure Attorney is waiting for a missing document from the Abstract that was done during the Title Search. A Specific Power of Attorney (POA) must be Specific to the Legal Description of the subject property. The POA Process usually takes a few days to a week. In today's Mortgage Burocrocy and compliance with Fannie, Freddie, and Ginny-Mae that comes from the Federal Government. As a veteran purchaser of REO/Bank/Fannie/Freddie/HUD Forclosures, it's common in today's market for Banks and Secondary Market Companies like Freddi-MAC to have a Back-Log of Forclosure Deeds that are awaiting documents to clear and deliver clean Title in the form of a Special Warranty Deed that is not as good as getting a standard squeeky clean Title with a Waranty Deed at closing that says that you own the property. It's OK to get a Special Warranty Deed, because if the Forclosure Attorney failed to execute a proper Title on the property, your Title Insurance meaning the Owners Title Insurance that is optional will save you if there is Cloud on Title from a Les Pendin or previous owner who has rights to the property. ALWAYS GET THE OWNERS POLICY that a Judge in Probate Court will simply need to see the Owners Title Insurance Policy, not to be confused witht he Lenders Title Insurance Policy which only protects the Lender's interest in the property. The number of Forclosures are so high that there is a huge Back-Log of Title Issues and Lender Issues that can delay closings for a month or two these days. But, it is total B.S. that a Bank would take 60 Days to do a lousy POA, which any RE Attorney or Title Company can generate in five minuites, scan it, and e-mail it to the Bank you had the Lien on the property. There is most likely a problem with the Title. Just remember that you are an American, and have rights. You have the right to reasonably question anything you feel may not be normative behavior pertaining to the protocal with RE transactions like yours. You can always call the bank who forclosed on the property after looking up the chain of title yourself in the RE Records or Tax Acessors Web Site on line with the county or city that the property is located. Good luck with your closing, and remember that you are probably getting a Freddie-MAC property on the cheap, so remember to not worry about tripping over a $1,000 when you are probably saving $100,000 or more because this is a Freddie-MAC Forclosure Property.

Last edited by BobcatDHS1; 04-19-2011 at 08:59 PM..
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Old 04-20-2011, 08:08 PM
 
64 posts, read 295,019 times
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Quote:
Originally Posted by BobcatDHS1 View Post
Good luck with your closing, and remember that you are probably getting a Freddie-MAC property on the cheap, so remember to not worry about tripping over a $1,000 when you are probably saving $100,000 or more because this is a Freddie-MAC Forclosure Property.
That's not always the case. I've looked at two Fannie Mae properties. One last sold for 125,000, 9 years ago when it had central heat and air and a 1500 sq. ft barn.

It is now listed for 159,900 minus the a/c as it was stolen and minus the barn as it collapsed under heavy snow, but with a 300 sq. ft add on with a roof leak. To be fair they are taking a loss because the house had been refinanced a few years ago for 225,000.

The second house sold 7 years ago for 200,000. When it sold it had new carpet throughout the house, new appliances, hot tub, storage shed and a fenced yard. It is now listed at 149,900 without the appliances, hot tub, storage shed and fenced yard. The carpet is now stained and ruined with dog or cat urine, holes in the walls, electric ripped out of the breaker panel, broken doors, windows, etc. It will take every bit of 50,000 if not more to get it back in the same condition it sold for 7 years ago.
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Old 07-25-2011, 02:15 PM
 
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I have had a huge headache buying from Freddie Mac. Until i found this link. Home Steps , A Freddie Mac Unit: Regional Area Managers (http://homesteps.masterlink.com/rl05_reg_areaman.htm - broken link)

Look up and email your Regional Area Manager. They can pull some strings and make sure things happen. my closing was delayed 2 times and with one email and about 4 hours, they were ready to close the next day. These Regional Area Managers can swing some weight and are willing to help you out.

Good luck!!!

thank you
Matt
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Old 08-08-2011, 06:03 AM
 
2 posts, read 35,775 times
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I am in hte exact same situation as newownermaybe above. waiting for Chase bank to give freddie POA to sign foreclosure deed. Weve been under contract for 4 months!!
Message to "newhomeownermaybe"= what is your current status?
please help!!!!!!!!!!
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Old 08-08-2011, 06:17 AM
 
2 posts, read 35,775 times
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I am in hte exact same situation as newownermaybe above. waiting for Chase bank to give freddie POA to sign foreclosure deed. Weve been under contract for 4 months!!

please help!!!!!!!!!!
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