Delaying Auction?
Can I/How do I ask a bank to delay an auction? I'm dealing with Countrywide, and I know it takes them a while to review a package. Our completed package was in this week, but the sale date is two weeks from today. Is there hope?
I have no experience with this, but have information that may help. Also, rules vary from county to county, so you would need to check and see how it works where you are.
I'm not familiar with the bank postponing the sheriff's sale (auction) at the owner's request. But the results of the sheriff's sale are not complete until a sale confirmation takes place. The amount of time from when the sheriff's sale occurs until the sale confirmation occurs is the redemtion period. In my county this period is 8 days. The redemption period gives the owner one final chance to settle their debt with the lender and keep their house. The owner can request a "confirmation hold" for 30 days to extend the redemtion period. It is my understanding that getting the first confirmation hold granted is automatic. But with subsequent confirmation hold requests, the owner may need to show proof that he/she is close to getting the debt settled.
As an investor, you may be able to use the redemtion period to have some additional time to complete final negotiations with the lender.
Good luck!
Jamie
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sdz333
Countrywide is big and slow, it all depends what state you are in. Post the state and someone can quote to you the procedure for that state.
Countrywide being what it is, is not manipulative at foreclosure level.
Selling loan portfolios into the secondary market, get out of their way or spend a year or two on buys. They are good. Watch them dump nonperforming portfolios. A pleasure to watch, that is to watch not buy.
At foreclosure sale you must be tight with whoever is running the sale for them the Loss Mitigator, aka (Walter Mitty). Check and see if there is an FHA underwriting on the loan.
Post and let everybody help.
Gratuiously Lucius
Thanks both of you for the posts.
Here's more info:
I'm in Oklahoma. Principal 165k
ARV 160-170k, 10K repairs. BPO'd by a friendly realtor at 125.
I've already talked with the attny's office who will be handling the bidding on behalf on the bank, and they seem willing to talk to me, discuss their bidding instructs, etc (but they don't have them yet). Lufos, please elaborate. How am I to become tight and what will it afford?
No FHA or VA guarantees but the borrower paid PMI.
Please help me along... I truly appreciate your advice.
Here is my short experience; I meet with someone that was loosing his house on an auction. I meet the person on a Thursday; the auction was one week after that, which gave me one week trying to work out a deal with the bank. Since I have to work through the attorney's office first I was not successful because the attorney's office was SO SLOW. Saturday came around, now only leaving me 2 days to the auction; I talked to my client and asked him about his financial situation and if he has considered bankruptcy? He told me that he has, so I told him that the only way we can stop the auction is by filing ”intent of bankruptcy" and later withdraw if he changes his mind (changing your mind is hard but it can be done). I paired him up with my bankruptcy attorney at 9:30 PM Sunday night, paid my attorney $1700 to file ”intent" of bankruptcy. My attorney stopped the bankruptcy at 9:45 AM. Monday morning, the auction was scheduled for 11:00 AM.
This works because my client hadn't filed for bankruptcy before; by filing it they are now forced to stop the auction.
This should only be used when all else fails and if you have truly explained everything to your client (honesty is best).
/Chris
Countrywide is slow and inefficient. Call them everyday. They are chaotic.
I once tried to work a short sale with them. They could not give me an answer. I ended up buying the property at the steps of the courthouse.
About two months later, I got a call from one of their employees telling me that the were ready to go ahead with my offer. When I told them that I already owned the property,the guy said that he would check and if this was correct he would "close the file".
Thanks again.
I'd like to reserve the BK option as a last resort. Have to look into acerview's idea about the extension on confirmation...
I am calling everyday. They do acknowledge that they've received everything (minor miracle) and say they will prioritize the file due to the tight timing. Yeah, right. Will keep you posted.
Any more thoughts?
I am not aware of the latest in the BK Realm, but I know that in the early '90s, the following would work: Owner files the 1st few pages of BK & files with the District BK Court.. Don't bother to fill out the rest, it takes a couple of months to get back to the sale proceedings.
Also, could file with adjoining District BK Court. Stops everything for a while til somebody figgures: Hey! that court doesn't have juristiction.
If the home owner files bankruptcy in order to delay the sheriff's sale, wouldn't that also delay the sale of the property to you, the investor?
Jamie
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Jamie,
Yes. You're right. BK stalls the auction, but also my transaction as well. Last-ditch effort BK is not a good option for my seller anyhow--as he has a small business he wants to keep, tons of creditors.
I've had some luck in the past using the threat of BK to move a bank into action--but this worked with smaller banks. I don't think the reps at Countrywide really care.
I'll keep calling CW, but fingers aren't crossed. Keep you posted.
Thanks everyone for the posts.
OK. More advice requested, please.
on the property. Homeowner owes 165+back. I plan to counter with hard facts and numbers tomorrow BUT...
Countrywide called me today (WOW) and politely offered $140 ("or a little less"
Couple of things bother me though--wonder if any of you have had a bank ask for money to negotiate a short?
They said that if I didn't want to pay the $140 (or a little less ha), in order to continue negotiating, I would need to pay a "postponement fee" to get the auction delayed. Sounds fishy. Is this just a negotiating tactic?
Thanks for the advice. Any anything you have on how to counter is terrific as well.
On one occasion I got a bank to delay an auction by putting up nonrefundable money. Property was within a day of sale. The money would go to the loan paydown if we closed within the extension and would be lost if we did not. Get as much time as you can on this. I got 30 days and closed on day 29!