Forum

Compass 2nd - wants $30K to participate in short sale

Posted by Kristy Hamilton on November 28, 2012 at 4:21am in Short Sale Discussions

Please help. 

1st is FHA w/ MI and we have the ATP. Allowing $2500 to the 2nd.

2nd is Compass (recently released to LTD). Approx. bal is $56K.  They won't accept less than $30K to participate in the short sale.  Previous to file moval to LTD, Compass stated $30K.  I was actually relieved when I found out it was now with LTD because I was expecting different hands in the mix.  But, LTD had to submit to Compass - the same person, in fact, that supposedly told the Compass negotiator that they wouldn't accept anything less than $30K. 

Sales price is $155K.

Thank you for any suggestions.

You need to be a member of Short Sale Superstars to add comments!

Join Short Sale Superstars

Email me when people reply –
Follow

Replies

  • Kristy Hamilton December 2, 2012 at 5:08pm
    SE Davis: What a pain, but an option. Thank you.
  • Kristy Hamilton December 2, 2012 at 5:03pm
    Joseph,
    We are aware that the 2nd doesn't have to accept what the 1st dictates, but reason would lead us to believe that the 2nd would understand how foreclosure goes down. The 2nd doesn't have to release the deficiency, just the lien, for participation in this short sale. Compass wants $30K ($56K principal balance) for the lien release ONLY. If the property forecloses, they might get some payment eventually once they file a judgment, but won't get the $2500.
    • Joseph Alfe > Kristy Hamilton December 3, 2012 at 5:34am

      They don't care, because they will file for a judgement whether they retain rights to the property or not. Start offering them cash contributions.  My point was that this should have been foreseen from the beginning.

      www.ssprocessing.com

  • Joseph Alfe December 2, 2012 at 4:15pm

    What some of you fail to understand is that, #1, The second does not have to accept what the first is allowing them, period. And #2, They do not care if it goes to foreclosure. HELOC's are consumer debt, therefore not wiped out in a foreclosure.  They can and will come after the sellers.

    What you should have done was anticipate the need for a cash contribution in the beginning, then found a buyer that would agree to do it, even if that meant lowering the offer to make it attractive to the buyer.

    www.ssprocessors.com

  • SE Davis December 2, 2012 at 5:41am

    Compass Bank originates FHA loans.

    Escalate that 2nd Mtg file using homeowner initiated and signed complaints to the OCC via the FHFA, HUD and direct to FHA.

    My prediction is you will experience SHORT SALE JOY with Compass accepting the $2500 in less than 30 days.

     

  • Justin Berry November 29, 2012 at 11:40am

    Yes, we are invested now!   :-)   Please keep us posted....

  • Justin Berry November 29, 2012 at 5:03am

    Escalate and provide them with the HUD PFS Rules - You're not making this stuff-up.  Play tough and tell them that you'll close the file and will go to foreclosure.  Also, if you got a fair appraisal in the ATP, market the property so that a buyer is expected to contribute $xxx to the 2nd.....

This reply was deleted.
********************************** like buttons ************************