Short Sale Strategies

<p> hi all again, </p> <p> I need assistance w/a loan w/Aurora. this has been waiting for approval SINCE AUGUST! same buyer hanging in...miracle... and the &quot;investor&quot; is FNMA! i was told on Oct 23rd that it was sent to FNMA for their final approval and... well............... STILL WAITING.... I&#39;m told there&#39;s NO way to contact anyone there, my negotiator doesn&#39;t accept calls or emails, jjust customer service is the only contact (at Aurora) and that FNMA has been emailed 2x w/no response from them. the emails from Aurora to FNMA were sent on Nov 23 and Dec 16. nothing... </p> <p> any ideas out there, OR a contact person either in upper mgmt at Aurora OR FNMA? </p> <p> Thanks much! </p>

<p> Hi, </p> <p> Other than hearing from more than one source that Saxon is very difficult to deal with, I haven&#39;t heard any details on working with them. </p> <p> Does anyone know if they will pay closing costs? I have an offer coming in and I know the buyer will need closing costs paid by the seller. I&#39;ve asked Saxon about this but gotten no where. </p> <p> The seller&#39;s sister is an attorney and is finally speaking to someone who seems to know what they are doing. (They processed the first short sale request we sent in as a request for a loan modification. They had already turned down the seller for a loan modification.) </p> <p> Thanks for whatever info anyone can share. </p> <p> Sherry Young </p>

<p> hi all, </p> <p> I REALLY REALLY need <strong>help</strong> here. I&#39;ve successfully closed at least 20 short sales in the last 3 months alone but NEVER ran into this following scenerio. </p> <p> House listed, In July in Santa Rosa, has two loans w/Indy Mac and a 3rd w/the local Bail Bondsman.... the 3rd is removed everntually,then we have TWO Trustee sales postponed then FINALLY we get an approval from our negotiator (who has changed 3 x too)after 4 months. </p> <p> The SAME DAY as short sale approval I discover that there had been a Trustee Sale (even tho the week before i had been told it was postponed for 30 days). So, I implore negotiator who says &quot;no problem, it will be rescinded&quot;. Buyers Agent (I&#39;m listing agent obviously) orders their reports and appraisal (buyer spends money and puts their deposit in escrow )and all looks good; seller signs their closing papers and here we sit waiting for buyers loan docs. </p> <p> HOWEVER, there&#39;s no happy ending here, yet. As of Fri, Indy Mac is telling my title company that they will NOT rescind the Trustee Sale UNTIL the Short sale is recorded and the title company has that money in their hands!!!! </p> <p> Now, I&#39;ve sold home for almost 30 year here, I have NEVER heard of any title company recording a deed that grants a property from one person to another when the SELLER as named on the Grand Deed ISN&#39;T REALLY THE SELLER anymore due to the Trustee sale. iT&#39;S the investor now (btw who is Freddie mac) I even called OTHER title companies in 3 contiguous counties to see what their policies are as I&#39;m being told Freddie Mac will NOT waiver in this decision. (Freddie Mac says &quot;it&#39;s done all the time and if I can&#39;t find a title company who will do it then the short sale is dead&#39;.) No recsission of the Trustee Sale until the SS is recorded!!!!! It&#39;s the old &quot;chicken and the egg&quot; syndrome. </p> <p> I need HELP and guidance. Does ANYONE know anyone at Indy Mac I can go to (I&#39;ve contacted the ALL the people i&#39;ve had dealings with in the past year or so). Or does ANYone know anyone at Freddie Mac? how does one <u><em><strong>succintly</strong></em></u> explain that what they ask isn&#39;t legal? </p> <p> I&#39;m told now that it&#39;s <u><em><strong>this</strong></em></u> way or everyone is OUT, and the house goes to the REO dept (and of course i lose a listing which isn&#39;t the end of all ends but I hate to lose ANYthing...) the sellers are out, the buyers are out (after spending money on reports, not to mention WAITING 4 MONTHS to get approved to begin with) and everyone else involved in keeping this sale together. We even had to switch title companies in mid stream cuz the initial one went out of business! </p> <p> Any guidance or names and phone numbers or email addresses would be wonderful. If you&#39;d rather call than post my cell is 707-953-1759. I&#39;m in Northern Calif, Sonoma County just about an hour north of the Golden Gate Bridge. </p> <p> Gael Grove </p> <p> PS: BOTH loans were purchase money loans. </p>

<p> can anyone here lead me in the right direction, I went to the NAR Convention in Orland and listen to some Realtors, filling in the slower market with BPO business can anyone lead me in the right direction on this ??? </p>

<p> As probably some of you have noticed, Countrywide has changed the way they do things on their short sales - again. So when I had a rep on the phone today I asked him to explain the timing of the various steps (or now called &quot;Phases&quot;) so here is what he said. </p> <p> File enters system and appraisal is ordered on files NOT in foreclosure within a week. </p> <p> <u>Phase 1<br /></u>Once appraisal is back and in their imaging system it is assigned a Phase I negotiator. This person&#39;s job is to confirm a complete package and make sure all necessary pieces are there. <u>This takes 7-10 days.</u> </p> <p> <u>Phase 2<br /></u>Then, it is sent to a Phase 2 negotiator. Their job is to &quot;process&quot; the file, compare values, assure sufficient offer, and draft financial data report that goes to investor for approval. This phase submits to the investor and obtains approval/denial. <u>This takes, now, about 20-25 days</u> he says (though he says they&#39;re trying to streamline this). He does note too the investor timelines vary. </p> <p> <u>Phase 3<br /></u>This person is referred to as the closer, and completes the package with the approval letter to the seller/agent. <u>This can take up to 7 days.</u> </p> <p> So, as you can see, even if all goes like clockwork, its still about a 6 week process. So many variations, and so many places it can get delayed; appraisal, financials, investors, vacations, holidays, etc. </p> <p> Best defense is complete package from day 1. </p> <p> Also, their automated system that literally tells you NOT TO call back b before a certain date. Don&#39;t listen to it (he even said that!) He said no matter what, we have to be calling at LEAST every 7-10 days. (I call more than that!) </p> <p> He also stated they just don&#39;t have time for counter offers, and confirmed my concern that sometimes at Phase 2 files are just closed with no chance to remedy for a low offer, or financials show seller doesn&#39;t qualify or whatever. So its important to call in alot so your seller is not surprised by a denial letter! </p> <p> Hope this helps! </p> <p> If anyone has the same kind of processing and time line information on another bank, please feel free to start a new topic and post away :) I will do one on B of A seconds in a minute. </p>

<p> Navigating through the short sales sea can be a challenging adventure... to say the least... </p> <p> Most of the time there is MUCH more to complain then to compliment but today, I received a very pleasant surprise and I wanted to share with you. </p> <p> I submitted a complete short sale package to GMAC (the first mortgage) on 11/20/2008, followed up the next day to make sure the fax was received-it was. I called back to follow up 10 days later, Dec 1st to make sure of the sure that everything was ok, and I was told that the file was complete and I should expect an answer between six to eight weeks... 6 TO 8 WEEKS? AHHH.. That&#39;s an insane amount of time to make a decision on a complete file, that has an offer that is above market value.. but ok.. what can I do. I was told to call back in two weeks...so I made a note on my calendar and updated everyone involved in the transaction. </p> <p> Today... less than 20 days from submission-Thanksgiving holiday in between- I received the short sale approval from the loss mitigator. WOW. Good job GMAC!!!!! </p> <p> Help lots of people and have a great day!!! </p> <p> Patty Da Silva, CDPE© </p> <p> CERTIFIED DISTRESSED PROPERTY EXPERT© </p> <p> Real Estate Short Sale Specialist® </p> <p> At Home with Diversity® </p> <p> Licensed REALTOR® &amp; Mortgage Broker - Senior Financial Advisor </p> <p> (305) 244-0609 </p> <p> <a target="_blank" href="http://www.pattydasilva.com/">http://www.pattydasilva.com</a> </p> <p> </p>

<p> Well, as some of you know, I used to be a fan of the Countrywide short sale process. Things have changed. Does anyone have the names of escalation team members at CW, or even the proper federal regulator names/numbers? Here is a blog I wrote about my recent issues, and things got even worse today when they closed the file on an already approved short sale: </p> <p> So, of many of the big lenders, I hear a lot about Countrywide. They&#39;re here to help people. They want to work with people. They want to help people avoid foreclosure. Awww, its warm and fuzzy isn&#39;t it? </p> <p> <strong>Actually from the Countrywide website their Code of Ethics features :</strong> </p> <p> <strong>Doing the Right Thing<br /> <em>We have the responsibility to do the right thing for our customers, shareholders, communities and one another.</em></strong> </p> <p> Its an untruth (lie) from what I can tell. A PR dream come true, but its going wrong. I, for one, can&#39;t stop fighting for my clients. They are NOT doing the right thing for their customers, or the communities. </p> <p> I do a lot of short sales. Hey Countrywide, those are YOUR borrowers, trying to avoid foreclosure. These are YOUR borrowers who have lost their jobs, their health and their dignity in many cases. These are YOUR borrowers who have jumped thru every one of YOUR hoops to get to a successful short sale. And hey , you know what Countrywide? You are getting market value. You have an asset, that to this point, is well maintained and being marketed properly. Oh, and Countrywide, you have an offer - and this offer is from a buyer who really wants YOUR asset. Did you know you have YOUR borrower, the realtorS, and the buyers ALL JUMPING THRU *YOUR* hoops to get the short sale successfully completed? </p> <p> Yes, we are. We have, and we continue to do what YOU SAY. </p> <p> So, why is it that you&#39;ve cancelled SEVERAL of our short sales in last 2-3 weeks? Yah, would that be the same time frame you are on the news and in the press and telling the government that you&#39;re HELPING PEOPLE?! Yes, it would. </p> <p> Was it too much for you after working with YOUR borrower and their realtor for MONTHS to give a courtesy call before cancelling? To give a reason before you closed the file? Or to at least confirm your closure of the file MADE ANY DAMN SENSE AT ALL? </p> <p> Here&#39;s an example: </p> <p> You were waiting for the first lender to approve the sale (you are in second position). That&#39;s ALL you were waiting for. Nevermind the months you put us thru of needing extra docs, needing docs sent, resent and resent again. Nevermind the explanations and updated statements you needed and always got as soon as you asked. So we sent you the approval to be told you cancelled /closed the file. Why? Because after the MONTHS you put us thru, the buyer walked. But guess what, without ANY glitch at all, we had a back up buyer and submitted you a contract and new updated estimated HUD. NOTHING CHANGED FOR YOU. YOUR NET $$ TO YOU DIDN&#39;T CHANGE. THE TERMS DIDN&#39;T CHANGE. NOTHING CHANGED except the buyer name and you closed the file. Hey geniuses , the other bank is going to foreclose because after you delayed this for months, they&#39;re done. </p> <p> I believe now that for some warped reason, this is your goal. </p> <p> Is the government bailing you out if you foreclose but not short sale? What is your incentive here? </p> <p> That is just ONE of a half dozen examples I could give you of what you&#39;ve done to my clients in just the last 2 weeks. These are YOUR borrowers Countrywide. Do you care? (wait, I know the answer to that, its ok, it was a rhetorical question anyway, no need to answer). </p> <p> (If you read some of my past blogs, I used to be a big Countrywide supporter, I &#39;ve had good luck, things have changed since the bail out plans and new guidelines.) </p>

<p> Well, let&#39;s start our group rolling with some discussion: </p> <p> I <strong>was surprised, out of the blue, to get a short sale &quot;approval&quot; letter for a property who&#39;s package only got into processing with them 2 weeks ago.</strong> </p> <p> This is a second loan on this property. A little over 300k is owed on it (as a P.S. over 3 million is owed on the first) </p> <p> I was surprised that the letter said: </p> <p> <strong>&quot;Bank of America agrees to accept $320,000 in certified funds as settlement in full of this loan. Upon the bank&#39;s receipt of the payment of $320,000 the bank will release the the lien on the above property.&quot;</strong> </p> <p> Yes, don&#39;t be blinded by the approval part of this letter, take note that this is NO settlement at all. </p> <p> So I called and the rep said, we have a new guideline. <strong>&quot;In non-deficiency states we are no longer accepting short sales for anything less than 85% of the full loan value.&quot; Period</strong>. This is important.. not only as it may signify the death of many short sales around the country (in non deficiency states), but that their expectation is (per the rep) that the first loans, upon foreclosure, will have to buy them out to release the lien. </p> <p> So helping people with short sales just got that much harder in California... for anyone with a Bank of America loan (presumably a second loan or heloc product). Bank of America is going to force the hand of many, many borrowers. If this is true, and is becoming the new, true guideline, many will be now going to foreclosure instead of settling the debt thru a short sale as for most, there is just no room to pay the second 85% of the loan value. The other option is to force folks into promissory notes in order to accept the short sale ... for some that will work, for others, with true financial devastation and hardship, the idea will be overwhelming... </p> <p> Thoughts?? Experiences with B of A and their handling of seconds? I just had another one approved and didn&#39;t have any of these issues. </p>

<p> I&#39;ve got one of the short sales from hell on my hands. We have an approval from the first (Wells) and Countrywide is the second. Countrywide was approving the deal per the rep - and then up came the note on her system that it had to go to Mortgage Insurer approval. Now keep in mind this is a deal that&#39;s been in the bank&#39;s hands since MAY! Granted we&#39;ve had a couple buyer&#39;s back out due to the wait, and that has delayed things, but now I&#39;m being told the MI company will take another 30 days. </p> <p> 30 days? This buyer will not wait for 30 days - I&#39;ve been told that by their agent. First (Wells) is threatening to foreclose next week if we don&#39;t have anything definitive from Countrywide. </p> <p> I hear the MI company is Old Republic? Has anyone ever been able to skirt the bank and get to the MI person and beg them to hurry a decision? I&#39;m not above begging at this point. These sellers have been saints thru-out this process and they really wanted to avoid foreclosure. Closing this by the end of 2008 also offers them tax benefits/forgiveness which they&#39;d like to take advantage of. </p> <p> Thought I&#39;d see if anyone here had any ideas. </p>

<p> Have you called Countrywide for an update lately? Oy vay! They now have it all automated! Now, instead of a &quot;real&quot; person you talk to their computer system that will tell you an &quot;update&quot; which on all the ones I called on today were non updates . They said they&#39;re working on the file, and that collection activities have been temporarily stopped. They said they will have another update on x date, and DO NOT CALL BACK until then. On one they told me 10/14 and another 10/21. </p> <p> Just when I thought we were on a roll... though on the bright side maybe this will make them work faster when they can devote less resources to phone answering. </p>

<p> Will Mortgage companies work with people who need to sell their rental property because they can no longer afford to feed it? Because they are an investor, will they automatically get a deficency judgement or can that be negotiated? Anyone have any experience with this? </p>

<p> It seems that there is a trend for lenders to put a moratorium on Foreclosures while they try to pro-actively do work-outs for people with ARMs that are re-setting. Not sure about sub-prime sufferers. Any thoughts on whether this will result in increasing difficulty getting lenders to accept short sales? </p> <p> Bernard Gibbons </p> <p> +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++<br /> Bernard Gibbons, Realtor, e-PRO Certified Internet Specialist<br /> J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526<br /> Phone (925) 997-1585<br /> <a href="mailto:bernard@bernardgibbons.com">bernard@bernardgibbons.com</a> </p>