Ive been working a short for over a year now.. The first is BofA and USAA has a HELOC 2nd....Originally USAA was going to cooperate with the short as my client was going to give them 25% of the debt cash at close, and take a personal note for another 25%. The total debt is $48,500 and USAA is now demanding 50% of the debt cash at close or they wont approve the short... BofA is the first, they will not approve more than 6% of the debt, and thanks to SB458 that our wonderful California governor put in place, my clients are no onger able to bring cash to close, or do a promissory note.... According to the new law, the 2nd lien holder can only take money from the 1st lien holder.. There is no way bofa will givethem 25k or 50% of the debt owed as BofA is losing nearly 200k onthis file themselves...
does anyone have any ideas? Does anyone know anyone at USAA that I can contact to help push this through? Please feel free to email or call me... Thanks!
**********************************
like buttons
Replies
I had a similar situation and I advised the lender that my client had spoken to BK attorney. Once the lender heard BK, they changed their tune and approved the file the next day. If a client files a BK then nobody is going to anything.
Good luck on this one. I owned a property in Cooper City which I sold short. USAA didn't budge on the second. When I applied for a mortgage in 2005 USAA gave me a first and a second at the same time...I think they knew what was coming and wanted to protect themselves. I am still trying to resolve and will let you know what happens.
I must agree with Harry. I am also befuddled by the fact that the HELOC knew from a year ago that your Seller would pay 25%? Why would you tell them that?? Make them beg, then negotiate. They get zero from a Foreclosure. Some will choose to do that anyway with a HELOC as they can send it to Collections, but often they'll negotiate.
Your first mistake was talking to them about bringing money in to close...JUST SAY NO! Now they have their sights on 50% of the debt...My strong advice is to walk away from the negotiator on this file and get another one who has nothing to do with the the old file...or go to the top management at USAA by email and let them know that they are going to get nothing if they submarine this short sale...BofA will pay 10% but you have to shame them into it sometimes...
Anyway for a HAFA short sale??? THey are called negotiators for a reason...Negotiate with them and just say Hell No when necessary! When all else fails, You have been very helpful and kind, and I understand completely that you can only do what you are able to do, pregnant pause, then ask for their Supervisor...So, you attack the problem from bottom to top and top to bottom...You will not speak with the CEO, COO, or CFO...that's not the point...If you connect with their Admin Asst's they will often give you good contact information on how to resolve the gridlck in your deal...Then keep them in your back pocket for future reference...Good Luck...