Replies to This Discussion

Permalink Reply by Marcy Moyer on January 18, 2012 at 11:41am

I got the same letter this week from PNC on a HELOC. The first and HELOC are both with PNC. Second said they wanted 17K more than the first investor will allow. First will not let the seller contribute to the second. Money must come from buyer or agent per 1st. Second does not care where it comes from.

Permalink Reply by ElizabethWeintraub00697006LyonRE on January 18, 2012 at 12:08pm

See, it's a conspiracy. I asked the negotiator where she thinks the money will come from. The agents have already discounted fees, so not from the agent. The buyer's lender won't let the buyer pay any amount over the appraisal, so not the buyer. It's against the law per Civil Code 580e for the seller to do it and, far as I know, there are no millionaires wandering the streets tossing $1,000 bills in the air. What they are saying is they don't want to do the short sale, even though their mouths are saying they are not rejecting it, their hands are busy typing denial letters.

It's the strangest thing. Apart from ending her sentence in a preposition.

Permalink Reply by Joseph N. on January 18, 2012 at 1:08pm

California property....I have a 2nd lien holder that won't accept the 1st lien holder offer (6% of remaining balance on 2nd loan).  This is a fannie mae loan and BOTH LIENS ARE NON RECOURSE PURCHASE MONEY LOANS.  Why would they reject the the 1st lien proposal?  They don't receive anything if it forecloses. 

Permalink Reply by Kathleen Lordbock on January 18, 2012 at 2:50pm

My only Short Sale in 3 years that failed was with PNC. One loan. They indicated that they preferred to foreclose and so they did. After the MN redemption period- non recourse, the property was sold for less money than the SS offer. Big loss for them or was it? I think there is more going on in the background of some of these than we realize.

Permalink Reply by ElizabethWeintraub00697006LyonRE on January 18, 2012 at 2:53pm

I think there is something fishy in Denmark, too, Kathleen. I don't get this attitude, er, position, from other second lenders. They understand they'll end up with nothing so they take the 6% or $6K. Not PNC. What is PNC doing that the others are not?

Permalink Reply by Joseph N. on January 18, 2012 at 3:38pm

Have you watched the HBO movie "Too Big Too Fail"?  Last scene with William Hurt staring out the window sums it all...

Maybe a paper/accounting loss offers more benefits to the 2nd lien companies rather than accepting a 6% settlement....

Permalink Reply by Evelyn Santiago on February 7, 2012 at 9:33am

PNC is the most difficult of all the banks I have dealt with.  If they are holding the 1st they only allow a small percentage to th 2nd.  If they hold the 2nd they want an amount that is totally out of line with anyother bank guidelines.  My last deal with PNC my borrower was current and they refused to approve the short sale because of that but did not tell us that would be an issue until 2 months into it.  Seller defaulted and they agreed but unfortunately the 2nd was SLS which is another group that needs to be hit with a lawsuit.  Seller ended up paying them off HUD with stipulation that they would accept whatever PNC paid them to forgive the 2nd lien deficiency.

This is one bank that needs to get sued in a class action.  I am not looking forward to dealing with them on this one. 

 

Permalink Reply by ElizabethWeintraub00697006LyonRE on February 7, 2012 at 3:45pm

I had to tell a seller today that although he has a purchase money loan with PNC, it carries very high odds that PNC will not approve his short sale, so he may very well need to get a lawyer involved at that point. I have seen PNC back down when a lawyer threatens them, but it does nothing when I do it. 

They won't say they don't approve the short sale. Instead they will say they don't approve the money offered. I'd say half of my PNC short sales go to foreclosure. It shudder when I see them as the lender. With other banks, I enjoy a 95% to 100% success ratio. Only PNC drags them down.

Permalink Reply by Karen on February 8, 2012 at 8:56am

just wait- they are aquiring POS RBC bank...

Permalink Reply by susan ellen on February 15, 2012 at 5:48pm

I am having the same trouble right now with PNC.I have been trying to get out of this house for 3 years, tried to refi, modification and now short sale. I am more than $200,000 underwater. 

PNC holds the 2nd lien and they are demanding $54000 to settle the $82,000 account. I was approved for a HAFA with the 1st Lien with BOA, (took about 3 mths). BOA has about $270,000 in this settlement which they agreed to take. I offered to give my $3000 incentive from BOA to PNC and the standard $6000 total of $9000.00 and threatened them that I would do a Deed In Lieu if they didn't accept it. They accepted the $9000 but with a terms from PNC:

 I can accept $9,000.00 as a short sale lien release only.

Susan would need to sign the deficiency agreement (attached).  We would

release the lien for $9,000.00, due by closing.  A 1099 A will be issued

for tax purposes.  We would hold Susan responsible for the charged off

deficiency balance & our recovery department would contact her to make

payment arrangements post short sale.

My lawyer send the PNC Person (see info below) an email stating that I will not sign any deficiently paperwork to repay this loan. She replied saying she will then close this account, no short sale. I am still going to call her tomorrow to plea with her. Its pathetic people have to go through this. Based on everything I am reading on here, I am worried they won't budge. 

Any advice?

Susan

My PNC Contact is:

Erin Hutchison

Short Sale Counselor

Lending Services-Consumer Default

PNC Bank/Consumer Services

6750 Miller Road Loc: BR-YB58-01-03

Brecksville, OH 44141

ph: 1-866-622-2657 ext 66269

Fax: 1-855-469-6447

Permalink Reply by ElizabethWeintraub00697006LyonRE on February 16, 2012 at 10:15am

If you were in California, I'd say hire a lawyer, agree to it and then sue the pants off them for breaking the law.