They sent me an email today stating that the Short sale is denied because the borrower can afford his mortgage. The processor said she submitted all of the docs to the investor and the investor (Freddie Mac) Denied it. The owner's income is 3700.00 before taxes are taken out and his bills are 4700.00 a month. Not only that but the reason he is requesting a short sale is because of his deteriorating health. He cannot maintain his home any longer. He goes to Dialysis 3 times a week and does not know how much longer he will be able to keep his job. What can I do. Who can I call.

Views: 264

Replies to This Discussion

Icesis - 

If your seller is still current on his mortgage payments, that is almost certainly the reason for the denial.  Fannie and Freddie are both among the most consistent investors to deny these because the payments are current.  In each instance where that happened to me, we suggested the buyer stop making the payments, then resubmitted the package when the loan was at least 60 days delinquent.  This resulted in an approval every time.  

Hope that helps.

Regards,

London Cox

Dear Icesis,  Would recommend that you go to your  senator's office immediately.  I have had to do that a few times here in Nevada, and Senator Hecht actually has a staff person assigned specifically for this purpose--to assist with problems on short sales for Nevada homeowners.   Since this is Freddie Mac, a contact from your state Senator's office should definitely get their attention.  On my last issue, Senator Hecht's office directly called the president of B of A, and within 24 hours I had a phone call from the Vice Pres. asking, "What can I do to help?"  We resolved the nonsense, and the file was approved to close. My experience with servicers over the past 7 years is sometimes they misrepresent what was determined by Fannie Mae or Freddie Mac.  It helps to have a Senator's office riding shotgun on your file when this happens.  I see many agents try to be a solo cowboy on their file,  but often you are up against large corporate organizations, sometimes sandwiched between two of them, like you are now, and they are trained to only respect who has the bigger guns behind them.  It's a fact, so use it. 

A fatal illness should qualify as a legitimate hardship, when coupled with the fact that he likely won't have any income (or it would at least be significantly reduced) as he went through treatment and the very unfortunate reality that he simply won't be around indefinitely to continue making those payments.

Sorry, this was intended as a comment to Icesis' most recent post. My fat fingers.........

You would think be the ASC Manager said that he would have to be unemployed or not paying the mortgage in order to be considered for the short sale approval. The hardship has to be happening right now. 

Thank you all. I think he will have to miss some payments in order to be considered. Has anyone ever heard of Freddie Mac granting a short sale for probable fatal illnesses? 

My seller are in the same situation right now.. The short sale was declined by Fannie Mae according to Wells Fargo.. They are current on the mortgage they don't want to default.. what else can they do.

It's unlikely you'll be able to get that approved if the borrower is unwilling to stop making payments.  Once Fannie digs their heels in on that point, it's virtually irreversible.  Their take on the matter is that if the borrower can still make the payments, then they're not going to write down the loan.  Your last option would be to simply contact Fannie directly and ask them why the file was denied.  Oftentimes they will be fairly forthcoming with that information.  You'll need to send them a revised copy of your authorization letter first, with Fannie Mae noted in the same area that Wells Fargo was.

He is going to have to be late. No other hardship is going to be accepted. 

That may be a Wells Fargo requirement, not a Fannie Mae requirement.  Contact Fannie Mae and find out for sure.  Our Nevada legislature had some issues with a servicer requiring a homeowner to go delinquent before they can be considered for a short sale program, if that is not a program requirement.  Find out for sure.

So an ASC manager just called back and said as long as the homeowner is still making Mortgage payments Freddie Mac will deny the loan. They take no other hardships into consideration other than the ability to pay the loan back. I asked why wasn't I told this 3 months ago when I started this process. He said that every short sale request has to be sent to the investor for approval or denial. 

RSS

Members

© 2024   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************