U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Old 11-21-2013, 01:46 PM
Location: Lead/Deadwood, SD
948 posts, read 2,267,407 times
Reputation: 854


Wow, so I have a client that had entered negotiations with BOA in order to list the home as a short sale. The foreclosure proceedings had also begun, but they eluded they would prefer the delay of that and consider a short sale instead. So just as the ball was getting rolling and she was contacting them to send the formal paperwork they had requested, they said, the loan was being sold to PenneyMac and she would now have to talk to them, but it would be earlier December.

This is a bit frustrating. Our office has a great potential buyer, but we don't want to promote it of course without some commitment on the listing/bank end. This is a small one bed home, in a small rural area. Even finding a buyer regardless of realistic pricing can take over a year on a one-bed home in our area.

Seems crazy that a home can be sold as it is entering foreclosure not to mention with the request for a short sale about to me submitted.

Mortgage peeps, does this appear legal? Does it happen frequently? Is there any option? The clock is ticking for my client and within just a couple more weeks (had BOA kept the note) my client would have been SOL except for the fact they had said they would extend. By the time the note transfers it looks like there will only be a few days before the right of redemption will end.
Quick reply to this message

Old 11-21-2013, 02:01 PM
Location: Scottsdale, AZ
1,987 posts, read 3,787,971 times
Reputation: 2888
It certainly is legal. Does it happen frequently? No. But BofA has been selling off large portfolios of loans recently. Not just non-performing loans, but packages of loans that include both performing and non-performing loans (I know my loan was sold).

I do not know what this does to your timelines you may have to wait and see. The only other option, is legal assistance, which may be able to help, but cannot say for sure. Sometimes and attorney can "stop the presses".

I do not think there is much you can do about it except to explain the situation to the buyer and hope they don't bail.
Quick reply to this message
Old 11-21-2013, 03:05 PM
Location: Lead/Deadwood, SD
948 posts, read 2,267,407 times
Reputation: 854
Crazy, Thanks Joe. I'm betting the buyer will come up with a suitable 2 bed in the meantime. A touch more money but....
I mentioned the attorney advise as well to my potential seller, unfortunately she doesn't feel that will be in the cards.
More of a cross your fingers and wait.
Quick reply to this message
Old 11-22-2013, 05:04 PM
7,598 posts, read 17,623,584 times
Reputation: 8083
Definitely legal......and depending upon the agreement, once PenneyMac realizes there was a loan default (how they will view it), BofA may be required to buy it back. It depends on the agreement. Prepare yourself and your client for this possibility......just another reason why short sales are unpredictable and so far below market.
Quick reply to this message
Old 11-26-2013, 12:37 PM
Location: New York
2,251 posts, read 4,161,942 times
Reputation: 1607

All lenders are concerned about attracting new investors, clearing their books of bad loans makes them look better. I see this every day with big lender's like BOA, they can elect to assign a sub-subsidiary to service the loan while the loan is in default, or out right sell off to another servicer.

When a servicer changes and a loan modification or short sale is being worked on. The homeowner is required to submit new paperwork. Depending on the state - whether judicial or non judicial, will determine how fast the bank can move to foreclosing on the property.

Just doing a short sale - 'Will Not" stop a foreclosure.

Every situation is different due to the loan terms, the lender, the borrower, the value vs amount owed, location, etc.. If someone could predict what and when something is going to happen concerning foreclosures, they would be one of the wealthiest people in America.

In non-judicial states - the loan servicer "does not" have to go through the court system to foreclose. It is advisable to work with the servicer on a deed in lieu. This allows the property to be listed for three+ months as a short sale. Then another three months working on a loan modification. On average I am seeing homes in non judicial states taking 7 to 8 months to be foreclosed upon.

In judicial states - services have to go through the court process in order to foreclose. It takes much longer (New York for example up to five years). Just doing a short sale is safer because of the legal time constraints.

In most cases when you are activity working a short sale, doing all the work. Your doing the bank a favor (especially BOA - they are really backed up). This can allow more time before they start foreclosure proceedings. Once a sale date is set - unless there is a full package in the hands of the loan servicer 10 days before sell date, the only recourse is filling bankruptcy.

My $00.02 ..

Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.

Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top