Anyone Had This Problem

I am expecting an offer on a short sale property this weekend. The property has a first with BOA and a second with Green Tree. Have been in contact with Green Tree people to let them know what is happening. Green Tree rep. told me today that since the owners have gone over 180 days with no payment they would be 1099ing the loan. She also told me that even if we got an offer on the property she won't even look at it unless they can make three months of back payments. She said she didn't know how long it would take to be 1099ed, basically didn't matter to her, maybe by the end of the month. She told me she will continue to call the owners demanding payment. (More like harassing them--very unpleasant person.) And then she hung up on me. Two questions: Can she actually prevent the short sale from moving forward? And if they 1099 the loan, isn't that implying that the loan is forgiven, because how can it be looked at as income and a debt both? Any insights of how to move forward will be appreciated.

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Permalink Reply by Wendy Rulnick on April 1, 2011 at 9:40am
Isabel - Submit the package to Green Tree when you get to contract.  It sounds like you were really talking to someone in the collections department, not short sale department.  What you were told doesn't make sense.
Permalink Reply by John Treadwell on April 3, 2011 at 3:08am

I have never had a good turn out when Green tree is the 2nd lien,  They will try to get money ,and you can send in the short sale pack and see where it goes ,but they are going to want 10% no matter what ,and the first well give you 3000.00 only.

 let it go to a 1099 ,will only put it in a collect company hands , then you"ll have the same thing  only thing is sometime they are easier to deal with than GT.   Everyone in the deal might have to pay some cash to get it closed in the in ,cause the 1st won"t cover the paid off for the 2nd in the end.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on April 3, 2011 at 3:11am

Isabel -

 

Wendy is correct - sounds like "Collections" to me. 

 

To answer your questions, 1099 are issued at the end of each year just like when you get yours from your Broker at the beginning of each year by January 31st for the prior year.

 

Yes, Greentree (or any other lender) and "prevent" the short sale by simply not approving it.  Remember, they are approving the amount of loss they are willing to accept - they do not have to accept any loss through a short sale.  They can foreclose or wait for the 1st to foreclose.

 

Best of luck,


Thom Colby

Broker

Newport Beach CA

Permalink Reply by Linda Susan Fox on April 3, 2011 at 3:50am
Green Tree is very difficult and yes they can hold up your short sale.  They too need to release for title to close the deal.  Your sellers may need to make a payment or two to make them happy.  PNC is the same way.  I do not believe that they can 1099 the seller unless it goes to foreclosure, you may want to have the sellers speak with their tax attorney and CPA.  Ask the forum about Green Tree as they bought many loans and now have much power over short sales.
Permalink Reply by Cindy Curd on April 4, 2011 at 1:33am
Greentree is rough. I had one with them last year and they finally released the lein, but said they would pursue the deficientcy. My seller was unhappy and told me he would come back to me if they came after him. Since I have not heard from him in a year, I expect that Greentree did not follow through.
Permalink Reply by Diana Hrovatin on April 4, 2011 at 8:38am
HELP Does anyone out there know of a goo contact person at Litton on a short sale. They have had all the paperwork since Nov of 2010 . Just found out 2 weeks ago that it has been sitting on someones desk misfiled. Now they gave us another name and said that they would call us . You guess it NO ONE has called. We are at their mercy and we get no response. The first has been approved in Jan and now we need to start over with them again as it is only good for 90 days. We did not go back to the first yet as we don't know if Litton the second holder will ever look at this short sale. The loan amount is 75k so they aren't paying much attention to us. HELP Any ideas or contact help?????

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