PNC denies even allowing short sale said to let go into foreclosure?
I've somehow not had to work with PNC on any short sales over the past couple of years, now realize I have been fortunate.
Here is what is happening, what is your thoughts? I have done hundreds of short sales and I have never had a client denied a short sale...until this time.
Seller lived in home back in 2007. He got a job transfer and also got married, moved 4 hours away. He tried to sell home back in 2007, but owed more then it was worth, so decided to rent it out. He is having a hard time keeping up with payments with this home and the other his current wife owns, so I listed as a short sale 4-5 months ago. Of course, now home is worth half what it was even back in 2007. I have faxed over all documents include HUD-1, and offer to PNC. I just called today to get an update. A negotiator was given the phone call(even though I found out currently it's not actually been assigned to a specific one yet). He told me that based on my clients hardship, that he is being denied a short sale. This is an FHA mortgage. I asked him what my clients options were, he said foreclosure or sell for what is owed(which is about 70k more then it's worth and no way client can come up with that money). I told him I have never had a short sale denied like this(BPO/appraisal hasn't even been done yet). Negotiator stated that my client doesn't have a "hardship" and that he should have spoken with PNC back in 2007 when he had a hardship.. I said he does have a hardship and it's a continuing hardship, he lives 4 hours away and can't continue to maintain these other two homes....he tried to make it right by renting it out and getting you paid, but he no longer can do this, tenant not paying, taxes went up, etc. Negotiator said that they will just let investor foreclose and then they will be the ones that loses the $$$, not PNC....
Is this for real? I guess I've been lucky, but I have never had a short sale denied like this. I've had offers denied because bank wanted higher net, but never heard of such a thing. It seems to me my client would be a classic person that has a hardship....?Thoughts or do I need to talk with a supervisor?
Replies to This Discussion
-
Permalink Reply by Kevin - Greenville, SC on
-
Have you checked out FHA Loss Mitigation Guidelines and what is required before a pre-foreclosure sale is allowed?
-
-
Permalink Reply by Beverly Cibulsky on -
Craig,
Kevin is correct (an a valuable asset to this site! I may add!) I dont think your seller no longer would qualify for a FHA Pre-forclosure due to the time they have been out of the home. 2007? The guidelines are on this site, also the number for HUD direct.(go to the FHA members) Thus PNC is taking the path, "does not meet investor guidelines, why bother!" PNC will get the FHA insured amount at foreclosure. You need to plead your case to FHA, see if it is workable with them! I would give it a shot! Also if you would be kind enough to keep us posted on your outcome, I would appreciate it! Just out of curiousity, why didnt you persue a FHA PFS when you listed it?
-
-
-
Non-owner Occupant Exceptions – Mortgagees are authorized to grant reasonable exceptions to non-occupant mortgagors when documentation indicates a property was not purchased as a rental or used as a rental for more than 18 months, immediately preceding the approval into the PFS program. As Beverly said, you may get HUD to grant a variance.
-
-
Permalink Reply by Craig Bartels on
-
thanks so much everyone. I guess I have been lucky over the past few years and never ran into this before at all....Beverly, it seems that most banks I submit to start the process on their own with PFS, such as Bank of America has in past....at this point I had just been submitting to bank all paperwork they had requested up front, with no indication from them that this would not work. What is frustrating is I submitted entire hardship package(without offer per PNC request) months ago. It was not until I called in again for maybe the 10th time yesterday asking for an update that they notified me that he didn't qualify.
I am going to see if I can get an exception. Looking over the PDF file, my worry is he has been out of house for 5 years, well past the 18 months mentioned in PDF on rentals.
-
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons