Getting The Bank (ABN AMRO Mortgage Inc) To Respond
I'm working on my first short sale on a pre-foreclosure schedule for next Thurs. I faxed the authorization to release letter to them yesterday and have tried to get their short sale package. After several phone calls leading into circles, I finally got a customer rep who said they couldn't give me the short sale package until my authorization letter has been approved by their committee. I asked the rep if he could confirm the foreclosure date is still Thurs 1/22 and he said no its Fri 1/16. All the foreclosure notices recorded at the courthouse and the letter the homeonwers have all say 1/22. Can the lender change the foreclosure date without proper notification to the homeowner. Is there another way for me to get the bank to respond since the timeframe is getting shorter has each day passes?
Thanks in advance
winuinc
The lender can push a date back, but not make it sooner. I would trust the published dates rather than what the rep said. Even with that being the case, It is unlikely you will have any luck trying to short with less than 10 days to the sale. Call and ask to speak with the loss mitigation rep, you do not need a customer service rep. Once you get the rep, ask NICELY to speak with their manager.
Worth a shot...
[addsig]
It sounds like you got to this one bit too late. Shorts take time to complete. So If it's a good deal, then go to the public sale and bid on it.
How much time should be allowed to do a SS?
SS can take as much as 30 days but if you put together your own package consisting of homeowners' hardship letter, their competing bills and anything having to do with why the property will not get much AFTER the auction plus a net sheet or HUD 1 and fax it over, you can get the bank to postpone the auction date. This can be done in as little as two days or however long it takes the loss mit rep to call the attorney. Just be sure to START the process soon.
At this late date…I have to ask, has the homeowner filed bankruptcy? If not tell the homeowner to go to "Order from Horders" and buy a bankruptcy package. Then you should call and ask to speak with the loss mitigation department and tell them that your trying to help the bank out out, because the homeowners is planning to file bankruptcy and you want to stop them from doing that. I’ve stopped this once, but I hate to say it, when it gets this close, I’ve started using the homeowners right to file the bankruptcy. I’ve been to the auctions and you can walk away with nothing, if you’re only trying to work on one deal. File the bankruptcy, try to do the short later and/or repurchase the home from the homeowner during the bankruptcy if it has any equity in it. It's too late to do the short, don't let them lead you on at the bank or at the lawyers office. hope this helps!
Thanks JGlaum. I have all of that information except for the Hud-1. I will fax it over to them tomorrow. My cover letter lets the bank know that there is a structural problem with the property. I already have my backend investor who will partner with me to rehab and fund the deal if we can get my contract accepted.
As for filing bankruptcy, the homeowner filed Chp 13 over 8 months ago, missed a mortgage payment or 2. Sent in double payments and the bank returned their check. So the bank pull the property from bankruptcy protection.
This is the 2nd potential client I have run into who filed bankruptcy and has tied up the property for a year to 2 years that the bank has finally said enough.
Sounds like youre on the right track. Use the BK as additional leverage. BTW loss mit HATES when we use BK to stop the sale. So the homeowner having already filed is a feather in your cap!