That is right.. Wells has advised that the "Investor" (Freddie Mac) wants a FULL Payoff. How many of you have seen this tactic before?
Good Morning,
I am the Negotiator assigned to this file. Based on the Investor values and requirements, the Investor is requiring that there be an offer high enough to pay this loan off in full. The net that Investor requires on this is at $244,000, which is requiring a full payoff instead of a short sale.
If there are any jr liens, then your short sale negotiations will be with the Jr. Lien only.
I will be closing this file out of short sale review as the investor is requiring that the borrower keep paying on the property as current, or that this loan be paid off in full.
This requirement of the investor is good through 05/30/13.
Thank you
Deborah S Johnston
Wells Fargo Bank, N.A.
Mortgage Loan Adjustor
Loss Mit-FHLMC Liquidation
MAC D3347-01K
...>>
[email protected] Please note that this email does not constitute an approval nor do any statements within it guarantee an approval of a short sale of the referenced property.
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Please contact my manager directly with any feedback at [email protected]
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My guess would be that Freddie Mac currently believes (whether correct of not ) that there is sufficient equity in the Property for a payoff.
I had a similar thing happen with Fannie Mae. The 3rd party short sale vendor for IndyMac/OneWest did not specifically mention a full payoff, but their valuation was over $100K too high. I think it is just part of their absurd valuation issues right now that has been covered substantially on this site. I would advise your client to speak with a bankruptcy attorney.
What is the property value?
Property Value is $160k to $170K... Based on the tight market, we might be able to squeak $175k out of it. So, they are asking for $100k more than value approximately. It is a Freddie loan. We love GSE's, don't we? :-)
BPO expires end of May.
I asked my Wells Fargo contact when I received the same message, they told me if the owner is current they always reject it for full payoff. They told me to resubmit once the owner was missing payments.
Interesting... I will verify that the seller is in fact behind on payments.
Brian I was just going to say the same thing. I actually had someone at FHFA tell me that this was why the valuation came back at 75K over the asking price. Freddie Mac deal - same issue. Not only do they need to be behind in most cases but they need to be behind 60+ days. Either this or they need to prive immenent default.
I had this happen as well, so I re-submitted my file for short sale approval after waiting for the seller to miss 2 payments (60 days in arrears), but had the exact same result the second time. In theory it sounds good, but the net payoff amount was EXACTLY THE SAME the second time, which makes absolutely no sense because she was 4 months delinquent by then.
There is something odd going on with the GSE's, and they aren't playing nice. We need to fight back and let the public and the media know they are up to no good.
Servicers have delegated authority to approve a Standard Short Sale for:
If the borrower is current or less than 31 days delinquent and their hardship is other than one of the four listed above, Servicers may submit a short sale recommendation to Freddie Mac for approval.
Borrowers must meet all eligibility requirements in order for Servicers to approve a short sale
http://www.freddiemac.com/singlefamily/service/short_sales.html
Key phrase - "for Servicers to approve a short sale".
Ken,
I closed a short sale with this same Negotiator, a few months ago. She provided me with a document entitled "Preforeclosure Sales Program" which details what they will allow and what is unacceptable. Part of it details their "tiered net proceeds" requirement.
Did you receive one of these?
If not, send me an email and I will send you what she sent me and it may be helpful to you.
My email is: [email protected]
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