Replies to This Discussion

Permalink Reply by Mark Vandervest on July 20, 2011 at 5:13am

Good morning Lisa.

 

I have been negotiating a second with PNC for about 6 months.  I received a carbon copy of an email like you received above, from a different Short Sale counselor named Erin Nolan.  This must be boilerplate language for them.  In our scenario the first mortgage holder (not PNC) approved the short sale and approved $6,000 to be paid to PNC.  PNC insisted on a $59,000 settlement.  Naturally, the Sellers were not in any position to come up with that amount to settle the 2nd.  If they did, they would likely not be in a position of losing their home.  Because PNC dug their feet in at that amount, we were held hostage by them.  We decided to let the listing expire, and PNC contacted the Seller and told them that they had to get the property back on the market.  The Seller advised that having the home on the market was pointless, because it had been on the market for 13 months with only one offer (the one that was approved above by the first).  The Seller further informed PNC that it was their fault that the home was heading to foreclosure, and if PNC came back to them for the balance in the future, they would be forced to file for bankruptcy.  In the end, PNC would surely get nothing.  PNC then informed the Seller that they would settle for $10,000.  Unfortunately this is still too much, as the first will not approve more than $6,000 and everything must be accounted for on the HUD.  So their statement that anyone can contribute the difference is absolutely not valid.  If a first mortgage is involved with PNC as a second, it would be fradulant to give PNC anything more than the first mortgage approves.  We are now 60 days away from the foreclosure sale date, and our hands are tied.  I have done a fair amount of short sales and up until this recent transaction with PNC Bank, I have had a 100% success rate of closing my short sales.  I believe that your problems lies with PNC Bank... and no other reason.  I have not encountered similar problems with other lenders including Chase, Wells Fargo, Bank of America, and many other more obsure lenders.  Of all the research I have done on PNC, I have not read or found one positive outcome.  I have read that in no event will PNC allow any settlement that is below 10% of the original loan amount.  This conflicts with what first mortgage holders are approving as a payout to the seconds.  I'm not sure there is any way to win this battle.  I can tell you that if I ever encounter PNC Bank as a lender in a short sale again, I will have to evaluate if the settlement is at or more than 10% of the original note.  Otherwise, it is my opinion that the short sale will be a complete waste of time.  It pains me to say that I don't think there is any way we can help the consumer out of this situation when PNC is involved in a second position.  I challange anyone out there to reply to this thread if they have had any success with PNC in settling short sales.  I would like to hear how that has been accomplished.  I have myself set up to receive any posts that involve PNC.  This is how I saw your post.  Again, I have not seen anything positive about PNC.  I have been following posts on PNC since January. 

 

Best regards,

 

Mark Vandervest - Principal Broker

RE/MAX Equity Group, Inc.

Beaverton Oregon

www.TheOregonBroker.com

Permalink Reply by susan ellen on February 20, 2012 at 4:57pm

I am dealing with the same lady Erin Nolan at PNC now. She won't settle my short sale for $9000. She wants $54000. I owed $84,000 originally, and $9000 is more than 10% so I wonder where this 10% rule is coming from? is it true? What other negotiation tactics can you recommend for me? I am the seller. My 1st Loan with BOA approved my for a hafa short sale, closing is scheduled for March 30th, and now everything is at a stop because PNC is being so greedy. I don't know what to do anymore. And Erin is saying she will not release my loan without a settlement even if I tried to do a deed in lieu of foreclosure (my next option). So basically i feel like I can't get anywhere with PNC, and they are forcing me into a corner to have to foreclose on my house. 

Permalink Reply by ElizabethWeintraub00697006LyonRE on July 20, 2011 at 1:57pm

This is what I expected to happen. Lenders won't play ball if they have a better opportunity to collect through foreclosure on these hard money loans. But it should help the borrowers with purchase money. And who better than PNC to kick off the repercussions of SB 458? One of the other attributes of this new law is the fact the banks can't demand a seller contribution. But they will. You know they will.

 

Elizabeth Weintraub

Broker-Associate #00697006

Lyon Real Estate

Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Permalink Reply by Mark Palermo on July 26, 2011 at 5:00am

Elizabeth and Mark,

 

This is a rule of thumb for PNC...But don't get stuck into thinking that the seller has to pay for it...they can't because the 1st won't let them..If the sellers are under water on the 1st, they will NOT be allowed to contribute anything on the second and it can't be shown in a HUD I. 

 

The solution? If PNC said they would settle for $10,000...TAKE IT!!! But divide that amount not covered by the 1st between the listing agent, the buyers agent and the buyer. On the HUD, show that PNC is being paid off between those three parties...It's like an extra closing cost...The 1st has no beef with agents and buyers...so they will allow it...Their beef is with only the seller.

 

There isn't a 1st mortgage company alive that will allow a seller to pay off a second BEFORE they are paid...The 1st is in that position for a reason. They get paid first...The second gets paid second...Get it done my way and it will close.

Permalink Reply by Mary K Foster on February 28, 2012 at 7:33am

I got the same letter and I am in Az, same Negotiator and everything. We are a non defiency state but not for HELOCs, so I am stuck! PNC just ordered a 2nd BPO after we sent in our counter with client agreeing to sign a prom note and 10K up front. If it goes to auction this 2nd will get 0 and will be able to pursue the seller for everything. Has anyone been able to get through to a supervisor, Her supe is Mike Messer, I get his vm and he does not call me back. Every PNC sale seems to take months and months to get done if they do! The first has a sale date this month and does not want to postpone again. PNC are like snails, i need a good manager contact!! Someone who understands. thanks to all who post here, as the information is very helpful!!!