Our short sale has reached it's bitter end. After 150 days (that's 6 months!) of riding the short sale roller coaster blind folded, we've crashed!
We went thru the whole sale, every step and agonizing slow motion torture, but always we thought and hoped and prayed it would turn out good. We'd get something encouraging and always it was "don't celebrate yet because it can still go bad". So we never got really excited until last week. We had first approval, investor approval and we finally finally finally heard PNC was ready to approve if the sellers would take their offer. PNC was agreeing to to the percentage but they are demanding the sellers sign a promissory note. Well, guess what? Their realtor sent us a message yesterday telling us she's going to work on them a little longer and she'll let us know on Monday, but she's pretty sure it's over. They won't sign. They can't sign. They can't do accept the terms offered! And this has been going on so long they are just done. The foreclosure process has started and they are stepping away and leaving us with egg on faces, tears in our eyes and a bitter taste in our throats.
I just don't understand how PNC can get away with this! It's so unfair that they can hold up and ruin the whole sale for want of a couple thousand dollars. It's just not right.
We're heart broken.
So upon leaving this fine site, I am just going to tell anyone who is starting short and is searching for PNC as second lender, do yourself a big favor and RUN away as fast as you can! You can't win against them! YOU CAN'T WIN! Save yourself the trouble of trying and go find another house. I don't care if if your dream house and your love it, walk away! Look at all the PNC posts on here and all over the web, PNC is impossible!
Best of luck everyone...from the losers!
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PNC usually will take an amount to release and a larger amount to forgive. Many sellers will not sign promissory notes when they can just let the property go to foreclosure. Have the listing agent find out and negotiate what amount PNC will take to release and see if you can contribute. They are tough but money talks!
We were unable to contribute at all. But they did sign. As the buyer, I have no idea what they ended up doing. But I do know the first has started the foreclosure process. I'm not sure where any of that is and I'm not sure how long till auction. Yet another bad part of being a buyer. I really do wish the whole process could be "fixed" so everyone is on the same page. The buyer ends up feeling very lost. It's no wonder so many buyers walk. We're 160 days into this and there is no end in sight.
Keep us (other buyers) posted Sharon! We are 191 days in right now as a buyer and we also have PNC in 2nd - still waiting for approval.
PNC Bank only releases liens for short sales they do not issue satisfactions.
In all PNC transactions, I require my clients to read their custom hardship application page 5 item B. Short Sale Deficiency Agreement.
We focus on that final settlement consequence in advance of the listing and marketing of their home.
Depending on the anticipated PNC Bank “numbers” scenario we disclose this to the buyer and weigh their tolerance for participation before accepting and executing the purchase contract.
After the short sale, closing PNC Bank will send a collection letter to the seller for that deficiency balance and offer a discounted lump settlement opportunity and the negotiation for settling that debt restarts at that point.
In several experiences with this bank, they have erroneously reported or failed to update both the short sale settlement and the deficiency balance debt to the seller’s credit reporting bureaus in clear violation of the FCRA. This creates advantage rebuttal opportunity for the seller in that negotiation.
Of course this is an action the seller must handle on their own however educating them can remove fear and uncertainty to get your transaction closed.
You know, I still don't understand why they thought they were going to walk away owing nothing. And I don't understand why their agent didn't prepare them ahead of times that they were going to have to owe PNC for sure. Every comment I've ever read about PNC in Second anywhere has said exactly;y what you're saying. They want more money then the first is going to offer. Logic dictates they are going to want at least as much as they can get from selling to a collections agency.
You know, one of the more annoying parts of a short sale is that as a buyer, we can never celebrate and brag to our friends that we bought a house. We realize this can fall apart even on the very last day.
Good answer Wendy. I'm also wondering why you don't come up with a little more money? You can offer it..what state are you in?
1. backed their moving truck into the garage roof- that's going to cost at least $700-$800 to fix.
2. They left the house with no propane so we have to put some in before we can even get an inspection done-that should be another $250.
3. when they left, they took all but one of the ceiling fans and the over stove light. Those will cost around another $1200 to replace.
4. They ripped out 28 shrubs and trees. Won't have to be replaced, but we are going to have to have landscape work done..especially since they have not mowed or weeded at all.
5. They took the original refrigerator from the house and left a beat up piece of junk in it's place.
6. They took the washer and dryer
All that with the additional closing costs, we're going to be out over $5000 or $6000 as it is.<<br />
We're just not sure what we can do now.
Sharon - That is unfortunate for you. The sellers should have been prepped at the beginning of the process that there may be a promissory note or cash contribution. This is not an uncommon request, especially from a junior lien holder. They often prefer cash contributions to promissory notes. If you are willing, you could find out if the junior lien holder would accept a contribution from you at closing, if you are able, and see where that proposal leads. With a cash contribution, they might lower the promissory note amount to the seller, or waive it. You can send the agents here to this site, if they want to post in the forum, too.