5/3 is demanding the balance of a HELOC paid in full at closing of a short sale
Hello forum.
Hoping to get some advice on options to present to 5/3. Ocwen approved the short sale of their mortgage (Deutsche Bank is the Investor) and will only pay the Jr. Lien 8% of the balance which is $4,160. 5/3 is demanding the full $51,000 because their full appraisal came in at $700K. Ocwen's full appraisal came in at $650K. 5/3 has said they would rather risk getting nothing at all & let it go to FC to potentially get more. 5/3's appraisal came in too high and the appraiser didn't take into consideration the condition of the dock or seawall. Doesn't look like fighting the appraisal will work unless the forum has other solutions.
The seller is willing to do a promissory note, but my contact is saying this is still a short sale and they are not interested.
What options will work that I can present back to the negotiator?
Thanks in advance.
Replies to This Discussion
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Permalink Reply by Short Sale Superstars LLC on
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How much is owed on the 1st?
How about just trying to get them a larger payoff by means of contribution in lieu of a full payoff?
310-564-6389
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Permalink Reply by lukand01 on
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Thanks Brett.
$580K as off July 2016, but $12K in property taxes coming due in 2 weeks along with interest and FC fee's, interest, etc. would likely put it over $600K.
Ocwen said their investor (Deutsche Bank) will only pay 8% of the balance. I did try going back to them.
I'm willing to pay $20K towards the $51K HELOC and the listing agent will pay $10K of their commission. Added with the 8% from Ocwen, that's $34,160 and 65% of the balance of the HELOC. Seller is also willing to do a promissory note for the $18K balance.
5/3 must believe the home would sell for over $650,000 at auction, which it would never. House was listed at $699,900 with no offers for 10 months.
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Makes sense. When does their value expire? Have you spoken to any managers? Will they allow a value dispute?
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yes, working with Loss Mitigation Supervisor by email only. Won't call to talk and replies are 2 sentences. Here is an example.
Mr. Andrews,
Fifth Third considers anything less than a full payoff at closing a short sale. A promissory note is a tool used when completing a short sale. As stated earlier, Fifth Third is not interested in pursuing a short sale on this property.
I have brought up a value dispute and even gave them 3 recent sales with a list of all the improvements the home needs. The dock and seawall need to be replaced and I think the appraiser missed this. About $25K to replace both.
They just aren't interested is what they say.
Do you know the logic they are thinking? If I can understand their logic, maybe I can come up with something. Ocwen will not get outbid and no one will pay more than $600K at auction. I have offered 65% ($34K) of their debt & promissory note. They are saying now, 5/3 would rather get nothing than a guaranteed $34K with a promissory note for the remainder. What logic is this?
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I'd be contacting as many higher ups as possible.
Who's the investor on their note or is it in house?
If that doesn't work I'd have to likely wait until the value expires and hopefully they do a new on that comes back more fair and changes their position.
5/3 is a smaller bank to my understanding so I'm not sure the the history of the account. Sometimes there is no logic to follow.
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