This is CA HAFA
1St-SLS
2nd-Chase Recovery because loan was discharged by Chase
Can't move on. Both are refusing to issue the approval letter until the other one does. Both are citing different portions of the MHA HAFA Handbook-4 & 4.1 and 6.2.4.2 & 6.2.4.2.1. I don't see where either sections say who issues 1st. They say those are their rules & nothing can be done.
Thanks for any help you can give me.
Bonnie
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Reaching out to the VP of RTR has helped us make progress with RTR on countless occasions.
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com
I recently had this happen between CCO and PHH. I wrote a letter explaining everything that we had done and that is was obvious that the banks were not cooperating with this short sale. If we didnt receive a response within 15 days we were reporting both banks to the Department of Banking and Finance as well as the State Attorney. The letter was faxed, emailed, mailed to the presidents, vice presidents, and CCO's and anyone else at top level in the bank. I had a response within 2 days. 2nd gave the approval. Still finalizing the 1st, but if they dont cooperate, I have no problem sending the letter. But, now I have contacts at the top of both banks should I need them.
I just had NationStar do a hard decline for failure to supply the approval from RTR. RTR would not go forward without the 1st approval. Per nationstar RTR know this.
Hi William - mine was also hard declined by Nationstar and RTR could have cared less - in addition - RTR stated they would not even review the file until there was an actual Auction date set for the home AND they would not accept less than 20% of the balance owed.
Dont despair! I had the same problem with a short sale that took a while to get approved but I did finally get it though. Chase bank was the second and B of A was the first, however B of A was using a servicer company which insisted, I went up the chain of command that the second gives a full written approval prior to their agreeing as the first to give one. It was a stand off. I insisted with the first that it is typical and customary that the first give the approval first and that the second at Chase will no way grant a second approval without the first giving theirs first. In the end I was told that the problem was because the short sale was being approved under HAFA and it was a special HAFA "rule." I had to get around that standoff by asking both lenders to cancel the short sale approval, which both had given me verbally but would not in writing until the other did so first, and had them change it to a traditional short sale instead. I had to resubmit the entire file again and yes it caused a 2 month additional delay but i did get it approved as a traditional short sale and my clients did not receive the $3,000 incentive they would have gotten under HAFA. Because of that experience now I always ask the first and second if this switch around from the usual situation will happen under HAFA before I try to do any short sale under HAFA and save months of wasted effort. I have done plenty of HAFA's that this did not happen but I always do ask. My suggestion is to have the client write a letter and sign and date it that they no longer want a HAFA short sale because neither the first or second was willing to give the written approval first and so they now are compelled to ask for a traditional short sale instead. Good luck with that.
@ Celeste: In California they make it difficult because the first has to cease foreclosure once short sale approval is received. No dual tracking after short sale approval.
Why do these banks make it so difficult? The 2nd just has to agree to what the 1st is paying them, so the 2nd should just cough up the letter so the file can proceed. Asking them to put their "policy" in writing is a good idea and then try to go to upper management. Sometimes I think they really don't care about their borrowers.
I have two files with this issue happening right now. One of them has been shut down because of this - Cartus servicing 1st lien for PHH and 2nd Lien with US Bank and neither would budge. 2nd lien said they did not care if the property foreclosed. Yesterday - Nationstar 1st tells me they need 2nd approval and RTR 2nd says they need 1st lien to approve - frustrating!
I have a Nationstar 1st and a RTR 2nd and I am getting the same, both want to see the others approval before issuing.
Bonnie,
Work on getting proof from the lenders in writing that they won't issue an approval without the other liens approval letter. Provide the documentation showing this and escalate the file to upper management. We solve issues like this all the time and haven't seen something like this kill a deal in a very long time.
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com
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