Replies to This Discussion

Permalink Reply by Donna Ryan on July 10, 2011 at 2:15am

Jim - the last one I received stated they will notify the credit bureau to reflect "agreed settlement short of full payment" and they will "waive any deficiency rights". 

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Permalink Reply by Vikki Deedrick on July 10, 2011 at 2:20am

I recently did a short sale for a client that was not in foreclosure.  The first was Citi, second was SunTrust.  Citi was quick and easy, I think mainly because they were not out much, less than $7,000.  SunTrust took the biggest hit and they also took the longest to get approval.  I believe the hardship situation is what made it work.  They were an older couple, he had just been diagnosed with cancer and they moved to be closer to family. They were prepared to let it go into foreclosure if they had to but it all worked out.  

Both banks waived deficiency rights.

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Permalink Reply by William K on July 10, 2011 at 2:38am

Last year, I was the seller on a BoA short sale where we were selling because we were moving. It wasn't very short and we got offers quickly, we were denied at 28 days delinquent. We resubmitted at 31 days delinquent and were approved after 90 days delinquent.

 

BoA waived deficiency.

 

We have since been unable to get a home loan, but we have bought a home on land contract. Our personal bank has said we will probably be able to refinance the land contract once we reach 12 months after the purchase, which will be in August.

 

We've also found that car loans available to us are only in the high interest high down payment range, the only credit offers we see are in the 36% interest and $75 annual fee for a $300 credit limit range... I never new offers that bad were possible.

 

Why would someone want to do that if they didn't have to?

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Permalink Reply by Evelyn Santiago on July 10, 2011 at 2:39am

Not PNC!  They have a "proprietary" policy that they have to be in default.  It's such a secret that they didn't tell us until 1.5 months into the short sale...another delaying tactic while they get their once of blood.  Seller used savings until his medical condition needed attention.  All you can do is try it but be prepared for worst case scenario.

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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on July 10, 2011 at 3:05am

Alex -

 

My experience has been "no" but I'm in CA.  BofA might work with it, but the other company likely will not.

 

So many people are behind in their payments the servicers are working on those since there may be an imminent foreclosure.

 

Best of luck,

Thom Colby

Broker / Negotiator

Newport Beach CA

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Permalink Reply by Jim Stewart on July 10, 2011 at 3:09am

Evelyn, my lone attempt at getting a non-DQ short sale done mirrors yours.  Indymac wasted about 60 days before telling us that they wouldn't even consider it unless the borrower was DQ.  When it was finally approved (we were within days of foreclosure by that point) they wouldn't even forgive the deficiency on an 85 year old woman with ZERO assets.  Nice.

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Permalink Reply by Alex Krumm on July 10, 2011 at 3:43am

wow, good feedback!  I had anticipated that there would be a stronger negative response to this, but it sounds like there's a real possibility.  We got a contract on one of them yesterday, so let's see how it goes ...

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Permalink Reply by Jennifer Hart on July 10, 2011 at 4:12am

Hi Alex!

There are 2 things that have to be a part of the equation in order to have the banks approve a short sale without your client going in default:  #1.  They must have a good reason to NEED to sell!  They cannot just WANT to sell because they are upside down, infact make sure your client NEVER makes the hardship the fact that they are upside down!  Banks hate that.   and #2.  There must be a foreseeable hardship!  So, we've been getting them approved without going in to default by hardships like:  Client just had another baby, and instead of being just a small family of 2 when they first purchased home, they have grown to 4.  House is getting to small for their needs and they NEED to upgrade. Until they get into something bigger the HARDSHIP is the fact that they are going crazy with no space.

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Permalink Reply by Juniper Cooper on July 10, 2011 at 4:16am

I've been able to do this on a few occasions where the seller stayed current on payments. They actually negotiated a settlement of the debt amount in the form of a one time payment at closing or a note paying monthly payments over 5 years. So it definitely is possible!

 

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Permalink Reply by Jackie Kumm on July 10, 2011 at 4:20am

  The only way I found to be successful, was to demonstrate some hardship or show that they will not be able to make the payment for long.  Divorce, underemployment, increased credit card balance, job transfer..   All of mine are were WF and they are tougher to get approved.   I also learned that if they are current that they are not eligable for HAFA

 

Jackie Henderson Kumm

Edina Realty

MN & WI

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Permalink Reply by Jackie Kumm on July 10, 2011 at 4:23am

We did have to negoicate deficiency/debt forgiveness with the second mortgages, since in WI the first has no deficiency on the first mortgages.

Jim Stewart said:

To those of you that are getting these done with the seller being current: is the deficiency being forgiven or is the lender retaining rights to pursue deficiency?

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Permalink Reply by Jackie Kumm on July 10, 2011 at 4:24am

Jim Stewart said:

Evelyn, my lone attempt at getting a non-DQ short sale done mirrors yours.  Indymac wasted about 60 days before telling us that they wouldn't even consider it unless the borrower was DQ.  When it was finally approved (we were within days of foreclosure by that point) they wouldn't even forgive the deficiency on an 85 year old woman with ZERO assets.  Nice.

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