Replies to This Discussion

Permalink Reply by Adam Woodhall on November 24, 2010 at 6:08am

David - I am a little confused as to your role in the transaction - are you the agent performing the short sale, or the borrower on the loan? What do you mean 'finance the short fall' -- is this in reference to a promissory note for the difference? In regards to HAFA, that is an option to explore, but I wouldn't rely on it. Very few people successfully get through the program --- not unlike the number of people who successfully get through a loan modification.

Short sale with NFCU, provided it's only that one loan, should be 90-120 days from contract to close on average...however, please explain in further detail so we can all understand and assist you.

Permalink Reply by David Cash on November 24, 2010 at 8:28am

Adam, I am the borrower. And yes, we were planning on financing the shortfall from the sale price and our loan balance so we won't have a negative mark on our credit.

But looking at the blogs out there, I am under the impression that I can negotiate with the negotiator on the promissory note. We really can't afford to pay off a $63,000 unsecure loan and wondering if they take less like 20K and call it good. I am sure they will attempt for the full payoff, but I will threaten to walk from the difference and take the hit on the credit. I don't think they will go through the trouble of suing over one loan...they have alot on their hands.

Any advice on NFCU? And BTW I have $5.00 in with NFCU so there is no money for them to grab freely.

Dave

Permalink Reply by David Cash on November 24, 2010 at 8:32am

Also, it seems by this blog that agents are pretty involved with the short sale transaction. So far, I have been the one to do everything. As the process goes further, does NFCU call my agent for more involvement?

Permalink Reply by Adam Woodhall on November 24, 2010 at 9:10am

David - If your deficiency is 'only' 63,000, in terms of a short sale, your off should meet their guidlines, provided back HOA, taxes, etc, are not too excessive. NFCU will not likely ask for the entire deficiency be paid to satisfy the note --- just a percentage. In my NFCU short sale, borrower owed 350k, I sold the property for 218k, he has to pay a 25,000 note. Even though the bank was over 100k short. Every person's financial situation is different, and the bank knows this, so even if you have only $5 in the bank, be prepared to show 401k, pension, etc. as evidence you 'can't afford' X amount in payback.

It sounds like your agent needs to go over the process in greater detail, and set some expectations moving forward. I applaud your research on the subject -- if only all sellers were as well informed --- you are right in saying your agent needs to get on track. Agent should be faxing the package in till they can verify it is recevied, and calling a minimum of 2 days a work week to get updates.

Permalink Reply by Adam Woodhall on November 24, 2010 at 9:12am

NFCU will rarely call or even email your agent --- most negotiators have anywhere from 50-200 files at once to work on - agent will need to be proactive and your file to the top of the pile.

Permalink Reply by David Cash on November 24, 2010 at 9:57am

NFCU says I can't call the negotiator directly. They said to just call them and they will look in the computer to see the status. The people I talk to don't seem to know a whole lot, in fact, she admitted they don't get much information on different programs such as HAFA. She searched her work emails to find anything.

Are there better people to talk to at NFCU to get things moving?

Permalink Reply by Adam Woodhall on November 24, 2010 at 10:03am

David - you CAN call the negotiator directly, some have direct lines, but for obvious reasons, it's not given out. Given that they work 50-200 files at a time and everyone wants to call, email is usually your best option anyway. If you know their full name, you know their email -- have your agent email them. The format is in the description for this group. Be certain your package follows their guidelines as well -- that is also in the description for this group.

Customer service and the negotiator eventually assigned to your file will know little or nothing about HAFA, it's on your agent to research it and get it submitted through appropriate avenues. NFCU does not care either way, unfortunately. In regards to 'better people' -- it's the same mess at every bank. Have your agent call loss mitigation every other day in an effort to find a customer service rep who cares enough to help you. If you get an answer that sounds wrong or off, call right back and ask another person the same thing. Checks and balances will get you through the smoke screens. And of course, have your agent visit this site for help whenever possible...

Permalink Reply by David Cash on January 7, 2011 at 10:49am

Adam,

 

Freddie Mac offered us to bring $20,000 in cash at closing or a $40,000 promissary note.  Luckily we have the $20,000, so we will go with that.  NFCU sent back my answer on the offer on Wednesday....do you know how long it should take to get the final approval letter?  I was thinking the turnaround time would be quick after an offer was made.

 

Dave
Adam Woodhall said:

David - you CAN call the negotiator directly, some have direct lines, but for obvious reasons, it's not given out. Given that they work 50-200 files at a time and everyone wants to call, email is usually your best option anyway. If you know their full name, you know their email -- have your agent email them. The format is in the description for this group. Be certain your package follows their guidelines as well -- that is also in the description for this group.

Customer service and the negotiator eventually assigned to your file will know little or nothing about HAFA, it's on your agent to research it and get it submitted through appropriate avenues. NFCU does not care either way, unfortunately. In regards to 'better people' -- it's the same mess at every bank. Have your agent call loss mitigation every other day in an effort to find a customer service rep who cares enough to help you. If you get an answer that sounds wrong or off, call right back and ask another person the same thing. Checks and balances will get you through the smoke screens. And of course, have your agent visit this site for help whenever possible...

Permalink Reply by Adam Woodhall on January 7, 2011 at 10:59am

Dave -

 

If you provided financial showing at least $20,000 cash assets, I'm surprised they didn't ask for more, considering that could be used against you terms of proving the hardship...consider yourself lucky there.  Who 'sent back' the answer, the negotiator directly? Any documentation from the investor? Today is Friday, depending on what needs to be signed and sent back to them, shouldn't take more than a few business days to get you an approval letter.

 

David Cash said:

Adam,

 

Freddie Mac offered us to bring $20,000 in cash at closing or a $40,000 promissary note.  Luckily we have the $20,000, so we will go with that.  NFCU sent back my answer on the offer on Wednesday....do you know how long it should take to get the final approval letter?  I was thinking the turnaround time would be quick after an offer was made.

 

Dave

Permalink Reply by David Cash on January 7, 2011 at 2:27pm

I was suprised as well about only wanting $20,000.  BTW, does that mean all we will have to pay at closing is $20K....that includes realtor fees, etc.?  The prelim HUD had $63,000 as my total payout with  all the fees and the money we are giving to the buyers at closing ($4,000).  So I assume the final HUD number will be $20K now...right?

The negotiator was the one who responded back the Freddie on our answer.  She said it was sent to them and all that she can do at the point is wait for the final approval.

Dave

Adam Woodhall said:

Dave -

 

If you provided financial showing at least $20,000 cash assets, I'm surprised they didn't ask for more, considering that could be used against you terms of proving the hardship...consider yourself lucky there.  Who 'sent back' the answer, the negotiator directly? Any documentation from the investor? Today is Friday, depending on what needs to be signed and sent back to them, shouldn't take more than a few business days to get you an approval letter.

 

David Cash said:

Adam,

 

Freddie Mac offered us to bring $20,000 in cash at closing or a $40,000 promissary note.  Luckily we have the $20,000, so we will go with that.  NFCU sent back my answer on the offer on Wednesday....do you know how long it should take to get the final approval letter?  I was thinking the turnaround time would be quick after an offer was made.

 

Dave

Permalink Reply by Adam Woodhall on January 17, 2011 at 9:43am

David  -

 

Any progress on your file, are you nearing closing?

Permalink Reply by David Cash on January 19, 2011 at 2:45am

Adam,

 

I have closed on the house!  Got letter of approval back on Jan 11th and closed that Friday.  Glad this ordeal is over with and really didn't take that long (2 months).

 

Thanks for all your posts.

 

Dave

Adam Woodhall said:

David  -

 

Any progress on your file, are you nearing closing?