Bank Won't Stop Sale, Any Suggestions?
Hello all,
I have a situation where a local bank issued several loans to RE investor here in town. Now he has defaulted on most of them. About half of the houses have tenants and they range from a total wreck and needing a complete rehab to reasobable and only needing cosmetics.
I have gotten the deed on 6 of them and sent off the short sale packages (they have had them for a few weeks now). The bank's debt collection rep has been very agreeable to work with but the packages have been sent to Fannie Mae for review. The sale is scheduled for next Thurday (Feb 12th) and I have requested that the sale be posponed until a decision is made on the offers. The local bank's rep told me that her contact at Fannie Mae said they would just let the sale go through and continue to review the offers. The rep said that was contrary to they way they had handled short sales in the past but the person at Fannie Mae said it wouldn't be a problem.
When the bank rep told me this, I pointed out to her that I have the cooperation of the owner now because he understands the foreclosure will be stopped if the bank accepts the offers. If the sale occurs and the sheriff files a certificate of sale my deed (not filed yet) won't be any good, the owner didn't get what he wanted (the foreclosure stopped) and he would have to cooperate at closing for us to buy the hoses because it would be during his redemption period (6 months in Minnesota).
This owner has creditors chasing him up and down the street everyday. He runs very hot and cold on cooperation and I feel the only way I'll get these closed is if the sale is posponed until the Fannie Mae makes a decision and if the deed in my possession remain good.
Does anyone have any suggestions on how to get the bank and Fannie Mae to postpone the sale until the packages are completely reviewed?
Will filing the deeds before the sale make any difference in who has the right to redeem?
Should I file the deeds? The guru I trained with generally says no until you know the offer has been accepted.
Any other suggestions would be greatly appreciated.
Thanks,
Gary
I have gotten banks to postpone sales but I have had to take some risk doing it. I put up a non-refundable amount to get 30 days extension on the foreclosure. I closed on day 29!
The complicating issues for you are the Fannie May review and a potentially uncooperative seller. You might try to put the money up where it would be refundable if Fannie May turns down the short sale, but where you are at risk if Fannie May accepts. You then only have to deal with the seller.
I hope this is of some help.
Regards,
Ed