Replies to This Discussion

Permalink Reply by Kevin Bown on November 21, 2011 at 12:11pm

what was their reason for decline?  Does he need to be 30 days late then resubmit?

Permalink Reply by Carmel Joseph on November 21, 2011 at 12:17pm

the letter stated that it was declined because of insufficient offer, not willing to sign a deficiency agreement, or contributing to the loss.  They never countered, nor asked for a Seller contribution.  I responded to negotiator inquiring about what could be done to get it completed and she stated that the offer was fine otherwise they would have countered that.  They decline it because of the homeowner's financials.  He does have a decent income but he has no choice but to sell. 

the letter also states that if the if the seller is willing to sign the deficiency agreement or contribute to the loss or have the buyer increase their offer; we may be able to reconsider the short sale.  How will i know what they want for a contribution?

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on November 21, 2011 at 1:47pm

This is interesting ..... Did you send a copy of the Divorce Decree mandating the property be SOLD ?  Will the attorney write a letter to the lender(s) on the seller(s) behalf?  If there is a promissory note required, are both the ex-husband and the ex-spouse required to sign?

 

Depending on the value of the property, if the ex-husband wants this over-with then maybe he should offer $2,500 - $5,000 payable over 10 years at 0% interest - maybe both he and the ex-spouse should be required to sign.  Need to get an attorney involved !

 

Thom Colby

Broker

Newport Beach and Palm Desert CA

Permalink Reply by Carmel Joseph on November 21, 2011 at 2:01pm

Hey Thom,

The divorce decree was submitted to them and clearly states that it needs to be sold.  I am in communication with the attorney and would be able to get a letter from her to submit to the lender as well.  They did not require a promissory note nor request a Seller contribution, just flat out declined it.  This really surprised me.  He has completely dried up his reserves at this point.   

 

The sales price is $269900, so how much do you think they should offer a promissory note for?  I will reach out to an attornery as well. 

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on November 21, 2011 at 2:20pm

Start with $3,000 payable over 10 years (120 payments), ZERO interest.  They will likely come back with $5,000 over 7 years / 84 payments ZERO interest.  It stinks, but they also report it as a new credit line and as long as he pays it on time, it will be a good thing.

 

Best of Luck,

Thom Colby

Broker

Newport Beach & Palm Desert CA

Permalink Reply by Debra Enos on November 21, 2011 at 5:13pm

Hi there!

Are you requesting HAFA? Or, is it a regular short sale?  I agree with Thom, that you send in the divorce decree to support the hardship..which you did. The thing is, they may test you to see if seller will come up with cash to keep from jepardizing his job, as you said. Can you please clairify something?.. Is both husband/wife on the loan? If so, then their individual incomes will change, as they both will have their individual living expenses - and possibly individual expense reports. If only one of them is on the loan, then make sure that you show ALL expenses POST seperation/divorce.  Those expenses go up in comparison to a single income vs. dual income... theres a house payment and someone is renting, right? Does one of them have to pay the others rent/deposits, or is it covered in the spousal support .. Is there spousal support? Child support....in the interium, or forseable future?  Who ended up with the "bills"? Take a good look on how your client(s) expenses were reported, are they true to the CURRENT situation?  If one of them is receiving child support from the other, it may not have to be reported as income by the one receiving it....child support is optional on reporting income in getting a loan - it may be true for a short sale....And then it is an expense for the other party.  Again, take a strong look at your client(s) expense/income reports, and don't forget the divorce attorney bills....If they are true to the situation, then you may have to make a contribution, like Thom said. Don't advise on how they can split up the contriubtion between the two spouses...that is legal-talk...to turn that one over to the attorney's...Good Luck!

Permalink Reply by ElizabethWeintraub00697006LyonRE on November 23, 2011 at 5:03am

He can't do a HAFA because this is Freddie Mac, and there is no ARASS for Freddie Mac. What the client needs to do is make an offer upfront to the bank. Just send a HUD with a contribution. Somewhere between $3,000 and $20,000, would be my guess. I've seen the spread.

Permalink Reply by joe beauchamp on November 21, 2011 at 5:50pm

I'm not that familiar with freddie - others can tell you if you need to be behind - I feel it is always better to have it a bad loan to have the investor/bank realize that dragging their feet doesn't mean that they keep getting paid by the seller.

The fact that you got no counter and BOA claimed you refused to cooperate indicates that you had one of the anal braindead "negotiators" at BOA.  Not as unusual as it should be.  Resubmit.  Get someone with 1/2 a brain and THEN explore what the real needs are.  If you get blowback because you have the same buyer, etc., point out that the negotiator did not propose those things that he said you refused (BOA "negotiated" in bad faith).  That should be enough for BOA to get it moving again.

With BOA, an occasional dumping a negotiator and restarting is, sadly, a reasonable tact.  When you get a pretty bad one, there often is no recourse - his "boss" is just as bad, etc.  Really not worth your time to try to get them to understand humanity and math - just move on and save time and limit your frustration.

 

[Also, I have to almost always pull teeth to get the sellers to write down their proper finances - they seem so burned out and uncaring.  My last pain wrote down $189/mo for electric - no other expenses and paystubs of $5K/mo net.  If your seller did that, what do you think BOA would do?  Hey, that extra $5K/mo should go to them, right?  Well, I'll bet it doesn't really exist..]

Permalink Reply by Wendy Smith on November 22, 2011 at 2:26am

I just had a similar denial - FreddieMac loan, however in my file, the buyer agreed to the counter offer from Provident and thee seller agreed to a prom note.  The denial letter was very vague, no real reason listed, and it was from Provident.  Upon contating FreddieMac, we were told that we had to deal with tProvident.  The letter also mentioned MI but Provident will not reveal which MI company.

The borrowers are also current. 

Permalink Reply by Kathleen Lordbock on November 22, 2011 at 4:58pm

Anyone do a SS with BOA and the owners are current on loan payment?