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Old 01-12-2008, 12:26 PM
 
Location: Gorham, Maine
1,815 posts, read 4,267,470 times
Reputation: 1240

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Quote:
Originally Posted by Zymer View Post
OK, Maine RE or Legal professionals or someone with accurate knowledge/experience, I am in need of some advice.

My mortgage broker has really, really, really screwed up. His VA sponsorship lapsed because his check was sitting in the "In" box of the sponsoring bank (since Sep) and his office girl didn't bother to tell him that she had not been able to access the VA website (for months) in order to schedule an appraisal.

His check has been overnighted but it appears that there will not be sufficient time to get the appraisal done and the paperwork finshed in time for the drop-dead date of 18 JAN, let alone the scheduled closing date of 16 JAN. The banks holding the mortgages have said that if the deal is not done by the 18th, they will proceed with foreclosure.

My agent contacted the title company who in turn contacted the short-sale company, to inquire about extending the deadline. Apparently, the guy at the short-sale company *laughed* at the girl from the title company and basically told her to "drop dead".

It looks very much like I stand to lose this deal, into which I have put a considerable amount of time, as well as money. I am contemplating some "hail-mary" desperation ideas to salvage the deal and buy some time:

1) I have the legal possession of the property at this time. Would it do any good to occupy it and try to force the mortgage holders to either go to court to evict me, or alternatively give me the time needed to complete the deal?

2) Have my lawyer file some sort of injuction to stop the foreclosure proceedings?

3) File suit alleging fraud on the part of the short-sale company and banks and attempting to stop the proceedings? (Fraud in that, apparently, the property was advertised for sale at a price for which the short-sale company had no basis to believe they could deliver, inasmuch as it appears that they had not received prior approval from the banks to offer the property at that price and there was no way to guarantee that the banks would agree to it, which is why it has taken so long to get this far.)

Are any of these feasible, or are there any other options that I haven't thought of yet?

O.K., here's a couple of ideas. Without naming names, can your REALTOR get this mortgage placed with local VA lender with local underwriting in time to get the loan funded? My sister mortgage company has done this time and time again when my buyer chose a less than stellar mortgage company, sometimes with 24 hours to go before closing. If this agent has done any business in town, he/she will have ideas on where to go.

Have your agent (a better negotiator than a para-legal) explain to the lienholder (not the middleman) that they don't want foreclosure, as they will surely sell it for much less and much later. Make sure you have the financing lined up though, so you're not pie in the sky, but have some real dates. This is part of Buyer Agency, your agent has to do this for you. That is why it's so important to get representation.

Do not get evicted, that will hurt your credit and the ability to purchase in the future for many years.

If all of that fails, you've got a legal problem, but the good news is that you've got representation lined up. You should be speaking with your REALTOR over the weekend, a new mortgage broker over the weekend and with your real estate attorney on Monday.

Good luck and please let us know how you do.
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Old 01-12-2008, 12:47 PM
 
Location: Gorham, Maine
1,815 posts, read 4,267,470 times
Reputation: 1240
One more thing, get the listing agent involved too. Both agents have spent countless hours and dollars on this deal without receiving any compensation and now that is at substantial risk.
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Old 01-12-2008, 01:59 PM
 
Location: Log "cabin" west of Bangor
5,487 posts, read 6,426,587 times
Reputation: 9378
Quote:
Originally Posted by WhoFanMe View Post
One more thing, get the listing agent involved too. Both agents have spent countless hours and dollars on this deal without receiving any compensation and now that is at substantial risk.
My Realtor already explored the local lender option. According to the info she relayed, because it is a VA loan, she says it will take a minimum of 30 days more to process.

The listing agent is uncooperative, he says it's too much trouble for too little money.
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Old 01-12-2008, 06:48 PM
 
Location: Gorham, Maine
1,815 posts, read 4,267,470 times
Reputation: 1240
Quote:
Originally Posted by Zymer View Post
My Realtor already explored the local lender option. According to the info she relayed, because it is a VA loan, she says it will take a minimum of 30 days more to process.

The listing agent is uncooperative, he says it's too much trouble for too little money.
Ugh! I'm sorry, I don't know any other options you have, as you are in danger of default. Please keep us posted, others can learn from this.
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Old 01-12-2008, 08:04 PM
 
Location: Log "cabin" west of Bangor
5,487 posts, read 6,426,587 times
Reputation: 9378
Quote:
Originally Posted by WhoFanMe View Post
Ugh! I'm sorry, I don't know any other options you have, as you are in danger of default. Please keep us posted, others can learn from this.
Well, the P&S specifies a contingency on financing, so I'll get my earnest money back...but I really don't want to lose the property. If the foreclosure proceeds I suspect the property will likely sit abandoned for some time, until it can be auctioned and I wouldn't care to speculate on what condition it might be in by then.
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Old 01-13-2008, 08:31 AM
 
Location: Foothills of the Smoky Mountains
380 posts, read 1,040,044 times
Reputation: 226
Quote:
Originally Posted by mollysmiles View Post
McMar, I can't even begin to imagine who that "realtor" is.....I've been back in the Eastport/Calais area now since '99, and I grew up in Eastport. I've gone over in my head practically street by street the houses in town, along with the realtors, and I can't come up with anyone that fits your description. Hope that puts your mind at ease. There are people who "flip", but honestly, "flipping" in Downeast Maine is a lost cause---too many people who can do the work themselves and property doesn't turn over quickly enough
Ok, so I'm a little behind here. Molly, thanks for the reassurance about the honesty of Easporters! Sounds like my kind of place. Maybe my friend was a little misinformed, though he did say that the agent offered to sell him a house for $37K that his buyer/tenant had defaulted on. Sometimes things get misconstrued unintentionally. By the way, my friend is kicking himself for not buying that house.

Zymer, sounds like your lender got you into quite a pickle. I worked at a title company for 7 years and never saw such extreme incompetence. Good luck. I hope you can get the sale closed!
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Old 01-13-2008, 03:50 PM
 
Location: Log "cabin" west of Bangor
5,487 posts, read 6,426,587 times
Reputation: 9378
Quote:
Originally Posted by McMar View Post

Zymer, sounds like your lender got you into quite a pickle. I worked at a title company for 7 years and never saw such extreme incompetence. Good luck. I hope you can get the sale closed!
A combination of the broker and the lender. What annoys me most of all is that I went to a broker instead of a bank because I expected that a professional would know the ropes, be able to find the best deal and make sure that everything went smoothly. Yet, despite having an extraordinary amount of time to make sure that all of the details were taken care of, he managed to screw it up so badly as to put the whole deal in danger of collapsing.

I'm working on alternative options now. Preliminary information from other sources indicate that I may be able to proceed with alternative financing and close in time. I just won't be able to use my VA benefit.

Many thanks to Northern Maine Land Man and WhoFanME for their assistance and advice.
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Old 01-13-2008, 04:00 PM
 
Location: Gorham, Maine
1,815 posts, read 4,267,470 times
Reputation: 1240
Quote:
Originally Posted by Zymer View Post
A combination of the broker and the lender. What annoys me most of all is that I went to a broker instead of a bank because I expected that a professional would know the ropes, be able to find the best deal and make sure that everything went smoothly. Yet, despite having an extraordinary amount of time to make sure that all of the details were taken care of, he managed to screw it up so badly as to put the whole deal in danger of collapsing.

I'm working on alternative options now. Preliminary information from other sources indicate that I may be able to proceed with alternative financing and close in time. I just won't be able to use my VA benefit.

Many thanks to Northern Maine Land Man and WhoFanME for their assistance and advice.
I was going to suggest going conventional, but I know how valuable the VA benefits are and tough to give up. Please keep us posted, we're all hoping for good news on Friday.
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Old 01-13-2008, 04:09 PM
 
Location: Log "cabin" west of Bangor
5,487 posts, read 6,426,587 times
Reputation: 9378
Quote:
Originally Posted by WhoFanMe View Post
I was going to suggest going conventional, but I know how valuable the VA benefits are and tough to give up. Please keep us posted, we're all hoping for good news on Friday.
LOL, I posted too soon- minutes later I get a call, one option says "No can do, need two weeks." One option left, if that falls through I'll have to think of something else.
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Old 01-13-2008, 08:33 PM
 
Location: Foothills of the Smoky Mountains
380 posts, read 1,040,044 times
Reputation: 226
When I worked at the title company, our escrow/closing agents said that VA loans were typically very difficult. I also know that many sellers won't even accept offers from buyers obtaining VA loans (here in TN anyway). It's too bad the process is overcomplicated because VA loans are a great concept. My Dad's a vet, but has never applied for one because of all the issues. It's too bad it's still taking so long to close a loan, even in this slow market. So much underwriting.

I wish I could advise on a good lender. I have used the same loan officer at my local branch of Regions Bank for the last 3 houses. Do you have Regions up there? Very good to work with!
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