UPDATE

Well, this one FINALLY closed - WooHoo ! 

Here are the final stats:

  • 600 Days on Market
  • 4 offers - all rejected for being too low but finally convinced lender to accept after
  • 1 complaint filed with CFPB.
  • 3,415 e-mails
  • 60+ pages of typewritten & very detailed notes
  • 30+ recorded telephone conversations

In the end, PHH stepped-up and got on-board.  On the positive side each time we started over, I got the same Analyst so she had the history and we developed a good working relationship based on our mutual respect for each other's position / job in the transaction.  We are all people trying to do our job.

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ORIGINAL POST

Hello Superstars!  

I've been working on a short sale since July 2014 - PHH is the 1st and Wells is 2nd.  PHH has been difficult at best and will not communicate.  The seller has received 2 Short Sale Denial Letters in the past 12 days.  On these letters, they state the Investor is "XYZ" but when I call-in they say the Investor is not "XYZ" but is actually "ABC" (which is also the borrower's employer and he believes this is the original and current Investor. 

When I contact PHH, I am able to reach the SPOC and he says the Denial Letters are not "real" and the file is actually still active.  The SPOC also told me the Specialist will never take calls from the Broker.  Further, I've been told the offer will never be submitted to the Investor (not sure which one) unless the commission is reduced by 1%.  (Two Brokers on this one, not at the same company).  I've asked PHH to put this request into writing and I would consider the reduction - instead they sent a Denial Letter.

Since the "Specialist" will not communicate with me, I had the borrower contact him.  The borrower received this e-mail earlier today: 

"The most recent denial was due to the fact that the minor changes to the transaction (HUD1) were not accommodated within the given timeframe.  The deal should be restructured to feature broker commission not exceeding "X"% before presenting to the investor for consideration."

PHH has not indicated whether the offer $$ is ok or not, whether the valuation was within guidelines, or if other items on the HUD are acceptable or not e.g., "Termite", "Payoff to 2nd", etc.

The last e-mail I received from the SPOC said; "Going forward I will be unable to communicate via email.  Please direct all questions and concerns to the office via phone. I can be reached at phone number 1(800)936-8303".

How is it possible to negotiate a short sale if the servicer does not communicate?

Anyone else have experience with PHH?

Views: 454

Replies to This Discussion

Have you tried reaching out to their executive office? PHH reps also communicate via email.

[email protected]

310-564-6389

www.ishortsalenow.com

Thanks Brett -

I finally got communication from the "specialist" yesterday.  PHH would not present the transaction to the investor unless the commission was reduced.  They sent 2 "Decline Letters" to the borrower and also sent him an e-mail stating the Real Estate commission killed his short sale.  Needless to say, I reduced the commission and magically everything is moving forward.  I want to get it done for my client and then possibly sue PHH / Merrill Lynch afterwards.

UPDATE 5-14-2015.  So, we've had two offers - both have been at or above the BPO & Appraisal value.  The first offer was countered by PHH and the Buyer stood firm at their offer price.  The Buyer eventually walked away when PHH would not budge either.  The second offer was higher than the prior offer and included closing costs paid by seller (FHA Buyer).  PHH limited the allowance for the 2nd and approved the short sale.  Then the 2nd decided they wanted 10% of the UPB "or else".  As a result the 1st would not budge, the 2nd declined the short sale, and the Buyer walked away. 

So the question is how to resolve the difference between what PHH will allow to the 2nd (Wells HELOC), and what Wells requires.  Anyone have any thoughts?

{BTW, we continue to have an uncooperative tenant who will only allow showings at 7:30AM for 10 minutes and with 3 days notice.  The good news is the tenant is supposedly moving at the end of May - but he's supposedly been moving at the end of every month for the last 6 months! (the seller doesn't even have a key for the property)}

PHH has never spoken with me by telephone and will not respond to any e-mails from me.  They are not responding to the Borrower / Seller either.  There is no Foreclosure or Default notices posted as yet.

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