I have a short sale listing with one loan that is backed up by Freddie Mac. The borrower is a military member and he received permanent change of station orders requiring him to relocate to Florida due to an imminent closing of his CA squadron. The borrower is still current with his loan.
Ocwen got BPO done and we submitted an offer for short sale approval on Tuesday of this week. Yesterday evening I received notification that the investor countered back. The amount they are countering has nothing to do with the BPO valuation. They are countering back with an amount that would yield sufficient net proceeds to pay off the loan in full (nearly $125,000 more than accepted offer price). The comment section says: "On current loans investor requires full payoff."
I understand that typically borrowers who are current are evaluated for imminent default, but service members with permanent change of station orders are supposed to be an exception. I included the PCS letter and pointed it out to Ocwen repeatedly to make sure they knew that this is a short sale based on PCS.
Has anybody else run into this?
Tags:
what is PCS, Ute?
PCS stands for permanent change of station order.
I got the same story about full payoff with a borrower who was current on a HELOC.....
You're getting bad intel.
Borrowers who are current or less than 31 days delinquent must:
» Occupy the mortgage premises as a primary residence.
» Have a monthly debt-to-income ratio greater than 55 percent (service
members with Permanent Change of Station orders are exempt from this
requirement).
http://realtorsfr.org/wp-content/uploads/2012/12/Standard-Short-Sal...
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