Southwest Florida Title Insurance & Real Estate Blog -

Winged Foot Title Travels to Great Lengths to close Short Sales (photo courtesy of Carl Wycoff)

What lengths would you go to in order to save your bank mortgage short sale from foreclosure?

Our team at Winged Foot Title refuses to take “NO” for an answer!

After being told that a Saxon Mortgage short sale was a lost cause, Winged Foot Title persevered and got Freddie Mac to approve the short sale and save it from the brink of foreclosure.

This is just one of the examples of the lengths to which our team will go to get the job done.

How many times have you heard of a bank mortgage short sale story like this?

Last week an approved Saxon Mortgage-serviced Freddie Mac short sale went south when the approved buyer walked away at the last minute. This happens. If you work short sales, you know that this happens. It is frustrating, but it has become a foreseeable part of the business. Here is the actual Saxon Mortgage Short Sale approval letter.

Fortunately (or so we thought), the news of the flaky approved buyer came with another offer at the same amount. This would net Saxon Mortgage and Freddie Mac the same amount, which we hoped would make the substitution a relative non-issue. Our hopes were dashed when the Saxon representative informed us that its investor, Freddie Mac, would not entertain a new offer and would concede to the following week’s foreclosure sale.

To the layperson, this refusal comes as quite a surprise. After all, why wouldn’t the investor want to entertain another offer that would net more than the foreclosure sale and would circumvent the costs associated with adding yet another REO asset to its books? To those experienced with Freddie short sales, it should not be quite as surprising. Understandably, they have guidelines and time frames to which the servicer must adhere. And this particular deal had admittedly dragged on for various reasons and was, as mentioned above, very near the end of the foreclosure process.

From our discussion with Saxon, it sounded like we were at an impasse. However, our short sale orchestration team had worked too long and too hard to just give up. We appealed to Saxon for a contact at Freddie Mac to discuss the situation. Since Saxon was the servicer, we understood that their agreement with its investor likely prohibited them from divulging their investor representatives. That didn’t stop the team though. They were determined to connect with someone at Freddie Mac who would confirm that indeed the GSE would not entertain the new offer or someone who could help us work with Saxon to get the new offer approved and, if necessary, the foreclosure sale postponed.

The short sale orchestration team reached out to all of the publicly available numbers and email addresses at Freddie Mac. Freddie has a borrower outreach department that assists borrowers struggling with foreclosure-related issues. Not surprisingly, that department is swamped, so we didn’t really expect or get the quick response we needed. Again, we were up against the foreclosure sale date just a week away. Undeterred, we kept plugging away and fortunately reached out privately via social media. After getting @FreddieMac to follow Winged Foot Title on Twitter so that we could exchange direct messages, we explained the situation and were put in touch with some very helpful folks in the Liquidations/Short Sales/Deeds in Lieu department. In less than one business day, the Freddie team communicated with the Saxon team and, together, we were able to get the new offer approved and the foreclosure sale date postponed so that we could close the transaction.

Are you being challenged by a Saxon Mortgage short sale or any other mortgage short sale? Winged Foot Title can help. Contact us, or call us at (239) 985-4142. Or if you prefer, you can become part of the Home Closing Services LinkedIn Network. We service all of Southwest Florida including: Fort Myers, Estero, Bonita Springs, Naples, Cape Coral, Lehigh Acres, Pine Island, Punta Gorda and Port Charlotte.

-Chris

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NOT LEGAL ADVICE: This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area. This information is not intended as legal advice and may not be used as legal advice. It should not be used to replace the advice of your own legal counsel.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.