Second Mortgage of 75K Refusing to Participate in HAFA and Demanding 34K

Does anyone know of any options for a seller when the second mortgager PNC refuses to particpate in HAFA? Has anyone seen the first mortgages allow the seconds through a regular short sale receive 30K when the first is being shorted by over 200K?

 

Thank you,

Kim

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Thanks Teresa for your help, I have already emailed your gal! I sure hope that helps and that I get an answer fast ,, like tomorrow! I have had a difficult time escalating in PNC, I have a title company with many upper contacts and she gave me about 5 or 6 for PNC and I emailed each one of them and now of them responded expect one who said he doesnt work in that area anymore and gave me the 800 number that I had for cs! Geez thanks Mr. haha. First time dealing with PNC and the worst ss by far! Ok, I am gonna think positive for this outcome. I always tell my sellers that. They often have no idea what happens in the trenches to get their short sales done! Thanks to everyone on this thread. I always come here for help and contacts and I send coworkers here also. It is a great forum that ss superstars have set up here, and I really appreciate it!!!!!!!!!!! Happy Sunday 

You wasted time even attempting HAFA.  Seconds almost never comply.  If PNC wants 30K, offer them a cash settlement to buy out the deficiency.  Start low, and work up.  At some point they will accept-probably around 3K, assuming the first is giving them at least 3K.  Then get the money from the buyer.

This should have been anticipated BEFORE submission.

xx

I had a short sale with PNC as the second.  The sellers owned about $35,000 and PNC would release for $3300 or forgive for $15,000 plus the $3300.  Bank of America offered $3000 and the buyer paid the additional $15,300.  All was done through the HUD1 and BofA approved.  B of A had already approved the short sale net; otherwise PNC stated to me over and over that they would close the file.  Also the sellers had to stay current on the second for PNC to allow the short sale.  They were very tough.  Maybe you could get just a release amount and get the deal done this way.

PNC is a NIGHTMARE!! I just closed with them on a 1st loan....it took calling VPs when they bubbled back and forth between them and their subsidiary Cardiss for months.

 They ultimately did get the deal done...7 months later with Buyer #2. They told my Buyer he was ineligable for HAFA...and since he had gone back to work, could now afford the payments! (Which unfortunately was true.)  They insisted on a promissory note for $10k, which I got reduced to $5k. The note said they would discount down another 15% immmediately after the deal closed. PNC blamed the M.I. company for the promissory note. I know they will also take 50% for  a lump payment (they told my Seller this after it all closed.) All in all, it was a good deal for my Seller to get out- the house had turned into a money pit for him.

@Jeff: when they blame the MI company, get a letter from an attorney(well worth the 250.00 cost) Demanding that the MI company perform the task that they were paid to do...DO NOT let the MI company hold your deal hostage...they were paid for a certain risk and they will bluff you to reduce their loss...Don't let them...call their bluff with a threat of legal action...They will mor ethan likely settle with much less fuss. Also, request to speak with the MI adjuster, you will need 3rd party authorization from your seller exactly like you would for the bank...and yes PNC is not the greatest bank to work with but dont abdicate your seller's power to them ot the MI company! Hope that this helps!

oh please give me that contact you talk about. I am having an impossible time  with PNC handling an ETrade second , it is a HELOC, for 47,000 and the seller  had valid hardships. Many of them. Out of the 47K PNC is asking for 40K and does  not care where it comes from. The first offer to them was 4K from the sale of  the home, Citi is the first and there is enough money in the sale to pay them in  full. The sale was postponed once and we were warned they won't postpone again  waiting on PNC :(. Well PNC is dragging their feet big time, saying they are  understaffed! So we got the buyer up 5K and squeezed title and now PNC is  getting 10K up front and after speaking to an attny my seller agreed to sign a  30K promissory note. But their first request was to get all 40K at closing. The  prom note is unsecured of course and is over a period of time and seller is  requesting 0 interest on it. We are waiting for a decision. But of course if it  goes to auction, the second gets nothing and seller will file chapter 7, so they  can't collect on the debt. Why is PNC so pig headed!! ??? Thanks for any help.  Oh and i have spent so many hours on this short sale, my toughest by far!  I want this to close, and my seller wants it to close and not have to file BK! Reading this thread has me furious about their bailout, from the Feds! Any help with contacts or ideas that will work fast would be greatly appreciated. Everyone involved in this transaction has been very cooperative except PNC! Waiting for an answer about the 30K prom not and 10K at closing. Provided the first extends the sale date which is this week. I had to use a high up executive to even get that considered. Citibank is ready to foreclose and not wait on PNC to make their decision. Again, I don't get it? Left speechless, they would rather take nothing? Wow

Yes...I'm in one now and have completed many in the past.  You will need to get everyone on the same page with a 10% payment to the 2nd...PNC knows that if they were in the same position that they would never accept less than 10% in 2nd position...Forget about the shortfall and concentrate on current market value and the loss to both lien holders if this forecloses...Focus on this and you'll more than likely be able to pull the two ends together...It is not uncommon for those large seconds to refuse to cooperate in HAFA shortsale, and in fact be proactive in the beginning and have your sellers decline a HAFA short sale so that you don't waste time being rejected.  If the 2nd debt is above 75k you are going to meet with resistance to hit a HAFA home run.  When in running into roadblocks, escalate, escalate, escalate...Good luck!

Here is Phoenix it is very difficult to find anyone who will take a PNC short sale.  They pride themselves in getting nothing vs. something.  When management has that mind-set it is very difficult to achieve a successful short sale.  The norm is PNC wants 50%.  

I do believe PNC is responsible for the increase in Gin sales.

I am in Phoenix also and I see why agents reject them, I am all for a challenge but this is just ridiculous.  I cannot get past the first line of defense at PNC, every number or email I have received from forums has been disconnected. Do you think they are trying to avoid agents!!! I communicate with the negotiator via email only and she freaks out when I try to call her. She will send an immediate email and say to stop trying to call her, she is busy and email is best, oye, I am going for the alcohol. Dealing with PNC is not healthy for sure. Any ideas on how to penetrate to escalate this file. Number must be recent! Title gave me 6=7 contacts now of which were good, emails or phone numbers! HELP

http://www.pncmortgage.com/Libraries/Important_Documents/HAFA_Eligi...

PNC Mortgage Escalation
• Escalation is handled through the Executive office.  The email address for
complaints is: [email protected].  The mailing address for written
complaints is:
PNC Mortgage – Executive Office
3232 Newmark Drive
Miamisburg, Ohio 45342

http://www.realtor.org/wps/wcm/connect/04cbb28045cc9f638a5ecb342c47...

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