HELP - Need PNC Escalation Contact
I need a escalation contact for PNC. The sheriff sale is scheduled for Dec.20th. The sheriff appraised the house at a ridiculous value of $474,000. The auditor appraisal is $365,400 so that should tell you this is an error. The problem we have with this is that PNC's full payoff is $285,000 and the 2nd mortgage is a local bank with an outstanding balance of about $100k. PNC is requiring a short sale approval from the 2nd for $6000 before they will provide us with their approval. My clients filed BK in July and the first sheriff sale was postponed because of that - that is when they appraised it at $474k. This time around PNC only had the sheriff re-advertise but did not do another appraisal (as they should have). With the high appraisal from the sheriff, the minimum bid is $316,000. That would pay off PNC and give the 2nd lender at about $25,000. Why would they approve $6000 when they can get at least $20,000? I've pulled comps and there is definitely a HUGE error with the sheriff's appraisal but it is setting the short sale up for failure. PNC will end up with a house that is really only worth about $270k since it require a lot of repairs as well. Any suggestions on how I can encourage PNC to postpone the sale so that the sheriff can re-appraise the property? Thank you!
Replies to This Discussion
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Permalink Reply by SE Davis on
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Rita your post is very confusing.
What state is the property located?
How much is the buyers purchase contract price? Has your clients BK been discharged? Has the BK Courts “lift of stay” hearing been held? Usually these hearings take 5-6 months after initial filing.
Sounds like your short sale decision lender is the 2nd mortgage holder and NOT PNC BANK.
Typically, lenders will not discuss additional suspensions of a foreclosure until the week before the sale date.
Let me know I will try to assist you.
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Permalink Reply by Rita Boswell on
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My apologies.
Located in Ohio. Had a buyer at $285,000, they walked, then got another buyer at $270,000. Yes, BK has been discharged.
Yes, the decision lender is with the 2nd, Emerald Bank.
I have sent a detailed explanation with comparables to the attorney and PNC. It is definitely in PNC's best interest to postpone the sale and do the short sale.
Thank you SE.
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Ohio is a judicial foreclosure state right?
I'm not sure how that process is affected after BK 7 discharge.
PNC is tough to deal with. It sounds like they may be restricted on valuation based on Ohio's foreclosure statute requiring a sale of at least 2/3 value (?) at time of foreclosure. I may not be interpreting that correctly. The sheriffs valuation may not be disputable in the realm of short sales.
You may have to get an approval letter from the 2nd lien holder before PNC will do anything. That 2nd lien holder any not get any money after foreclosure so I would agitate them really hard.
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The challenge is that the 2nd will NOT provide a short sale approval since they WILL make more money having it go to the sheriff sale (remember pay off to PNC is $285k and minimum bid at the sale is $316k leaving about $25k for the 2nd mortgage). This is all because the sheriff has an incorrect appraisal on this property. It's an obvious error because no one in their right mind would even appraise it that high. The highest value in the neighborhood may be closer to $350,000 so $474,000 is a HUGE mistake and I'm not sure how it happened when typically they get 3 realtor appraisals. I called the sheriff's office and didn't get anywhere with them either. I realize I'm probably fighting a losing battle with this one but it's quite disturbing and I've never dealt with this type of situation before. PNC has actually be pretty easy to deal with and are willing to accept the offer but they need the 2nd to provide approval. My opinion, if I was the decision maker for the 2nd, I wouldn't approve it either if I knew I was getting a lot more at the sheriff sale.
I just need to convince PNC that it's in their best interest to postpone the sale so that we can work with the short sale and, if not, they can get the sheriff to do a new appraisal that will force the 2nd, Emerald Bank, to give us approval of taking $6000 for the short sale (since they won't get anything at the sheriff sale).
Thank you.
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