OK Members, here is your chance to get your burning questions answered from some major lenders.
I am attending an event in Mid November and will be meeting with some major lenders short sale department heads and VPs. It is an orchestrated event to discuss with the lenders the pitfalls and issues with their short sale processes and will be a great opportunity for us to help them streamline their short sales,much like Bank of America has done with Equator (which by the way was at the suggestion of some top agents and BofA listened).
What is the question that you would like an answer to?
Mine is this: Why is there a secrecy around the process in regards to who the investor is, the investor specifici guidelines and also why can they not tell us the appraised amount or the amount that they believe the property is worth?
What is your question? I hope to compile a list of questions for the meeting.
Replies to This Discussion
-
Permalink Reply by Smitty on
-
Ask them if they feel if they will TRULY pursue a deficiency in 1-5 years after the short sale is completed if they've RESERVED the right to pursue it? My gut tells me few will actually pursue.
Ask them why they would foreclose and take back a property for less than a short sale that was offered?
Ask what actions can be taken against a lender that doesn't adhere to the HAFA guidelines? I.e., if they don't respond to an offer in 10 days.
Ask them WHY we can't see the written policy from the lender based on the investor guidelines? If it's submitted to the government, why can't the public at large see it?
-
Permalink Reply by Jeff Payne on
-
Good questions Smitty. I think your last question could unlock the mystery of short sales
Smitty said:Ask them if they feel if they will TRULY pursue a deficiency in 1-5 years after the short sale is completed if they've RESERVED the right to pursue it? My gut tells me few will actually pursue.
Ask them why they would foreclose and take back a property for less than a short sale that was offered?
Ask what actions can be taken against a lender that doesn't adhere to the HAFA guidelines? I.e., if they don't respond to an offer in 10 days.
Ask them WHY we can't see the written policy from the lender based on the investor guidelines? If it's submitted to the government, why can't the public at large see it?
-
Permalink Reply by VIctor T. Gurrola on
-
Short Sales VS foreclosures which do they feel are the better option? And if its short sales, are their systems in place, as good as there going to get?
-
Permalink Reply by sylvia gregory on
-
If an investor does not remove a deficiency clause from their approval letter, shouldn't they at least provide in writing what their plan of action will be in all possible cases? I.e.
option a) 1099c - lender will provide within 90 days following closing or before end of year whichever occurs first
option b) deficiency judgement - lender will notify you in writing of intend to file for a DJ (x number of days prior) or at time of filing; which form of delivery info will they use (specify address and phone info they will use)
What puts me at a "wow" is that the negotiators and bank workers cannot give you this info. So I get a letter stating that short sale is approved and I may be sued for the deficiency. No info on when will I know what exactly is going to happen - in the mean time while franticly checking my mail and loosing sleep in prayer for a 1099!
If there is such thing pls let me know how to obtain this info with BofA. I am "fortunate" to go through this process myself and understand how frustrating it can be for the client.
Thanks in advance!
-
-
Jeff I have another one.
Ask them why they would auction a house off for $350,000 when I had a short sale ready to go at $380,000? Under contract and patiently waiting for approval.
:)
-
-
Nevermind Jeff. I see I already asked that.
can you tell I'm pretty po'd about it?
-
Permalink Reply by Wendy Rulnick on
-
Jeff - You've got some great questions from the members here. If anyone can get "straight" answers, it will be you!
-
-
So far we know that Citi, BofA, Wachovia and Fannie Mae will be there, I have my list of questions ready!
-
-
Just got in last night from Texas so I have not had a chance to bring everyone up to speed, I believe there were some short sale superstars at the event, if so, please add your thoughts also.
The mastermind session went as can be expected, there were representatives from Fannie Mae, Citi, Wells Fargo and Bank of America.
Wells Fargo officially announced their partnership with Equator but did not give us a timeline. This is a great step in the right direction. Wells Fargo portfolio loans only account for 23% and 77 % of the loans are just serviced by Wells Fargo out of 9,000,000 loans. Wells is initiating a new process in which the seller is graded by their credit score and will not require any seller docs if the credit score is bad or below a yet to be determined threshold, this is something that will speed up the process too. Wells also announced that they will NOT pay 3rd party negotiator fees. They are also encouraging agents and sellers to engage Wells Fargo as soon as we know that we are in a short sale position. Last but not least, Wells acknowledged that we are agressive and actually commended us for being aggressive. Always ask for an escalation if you are getting stonewalled or if you belive the negotiator is wrong, only caveat to that is escalate up the chain of command and refrain from just sending your escalation to the top. Overall, I was very please with Wells Fargo and their participation.
Bank of America: BofA also stated no more 3rd party negotiation fees paid and that they will only approve the fees that they pay in an REO in regards to closing and title fees. They are also looking into limited seller docs based on credit score. Buyers can be in the form of an LLC but there will be extensive documentation needed in order to ensure that the transaction is arms length. Substitution of buyers, Equator is making changes so that when a buyer walks, we won't have to reupload EVERYTHING, it will only aks for specific tasks in regards to the buyer. The reason they won't substitute a buyer immediately is because they have to ensure that the buyer is arms length, they are now sending out arms length affidavits that will need to be signed. If you have a BPO or appraisal dispute, put your comparables together and escalate the file.
Citi: Citi is also doing low doc short sales based on credit score.
Fannie Mae: 75% of all defaulted FNMA loans are foreclosed and 25% are short sales. Fannie recognizes this and they are working on reversing this trend so that 75% can be disposed of in a short sale. They are looking at low doc short sales also. If you have a dispute with the servicer, you must request the file to be escalated to Fannie Mae. FNMA gives the servicer full delegation and as we know, the servicer does not always see the forest for the trees. Fannie is working on the extension issues and as of right now they will only extend the sale date one time.
When asked about secrecy behind investors and BPOS, all lenders said the same thing... their investors do not allow them to provide the investor name and many times the investor is who has the BPO in hand and not the servicer. They expressed a concern over giving up too much information by giving out the desired NET amount because if they give the minimum NET, they will NEVER get anymore than the minimum. Actually makes sense to me (a little). Since most of the loans are just serviced, the servicers have to follow investor guidelines and they are working with the investors to make the guidelines more transparent.
That is all for now, I will add more later.
-
-
Jeff, Lots of good information. Great tip to notify Wells Fargo as soon as the short sale is listed... Maybe they'll fast track the process. Also, very interesting on not paying third party negotiators now. I think you should add your update to the original post, too!
Jeff Payne said:Just got in last night from Texas so I have not had a chance to bring everyone up to speed, I believe there were some short sale superstars at the event, if so, please add your thoughts also.
The mastermind session went as can be expected, there were representatives from Fannie Mae, Citi, Wells Fargo and Bank of America.
Wells Fargo officially announced their partnership with Equator but did not give us a timeline. This is a great step in the right direction. Wells Fargo portfolio loans only account for 23% and 77 % of the loans are just serviced by Wells Fargo out of 9,000,000 loans. Wells is initiating a new process in which the seller is graded by their credit score and will not require any seller docs if the credit score is bad or below a yet to be determined threshold, this is something that will speed up the process too. Wells also announced that they will NOT pay 3rd party negotiator fees. They are also encouraging agents and sellers to engage Wells Fargo as soon as we know that we are in a short sale position. Last but not least, Wells acknowledged that we are agressive and actually commended us for being aggressive. Always ask for an escalation if you are getting stonewalled or if you belive the negotiator is wrong, only caveat to that is escalate up the chain of command and refrain from just sending your escalation to the top. Overall, I was very please with Wells Fargo and their participation.
Bank of America: BofA also stated no more 3rd party negotiation fees paid and that they will only approve the fees that they pay in an REO in regards to closing and title fees. They are also looking into limited seller docs based on credit score. Buyers can be in the form of an LLC but there will be extensive documentation needed in order to ensure that the transaction is arms length. Substitution of buyers, Equator is making changes so that when a buyer walks, we won't have to reupload EVERYTHING, it will only aks for specific tasks in regards to the buyer. The reason they won't substitute a buyer immediately is because they have to ensure that the buyer is arms length, they are now sending out arms length affidavits that will need to be signed. If you have a BPO or appraisal dispute, put your comparables together and escalate the file.
Citi: Citi is also doing low doc short sales based on credit score.
Fannie Mae: 75% of all defaulted FNMA loans are foreclosed and 25% are short sales. Fannie recognizes this and they are working on reversing this trend so that 75% can be disposed of in a short sale. They are looking at low doc short sales also. If you have a dispute with the servicer, you must request the file to be escalated to Fannie Mae. FNMA gives the servicer full delegation and as we know, the servicer does not always see the forest for the trees. Fannie is working on the extension issues and as of right now they will only extend the sale date one time.
When asked about secrecy behind investors and BPOS, all lenders said the same thing... their investors do not allow them to provide the investor name and many times the investor is who has the BPO in hand and not the servicer. They expressed a concern over giving up too much information by giving out the desired NET amount because if they give the minimum NET, they will NEVER get anymore than the minimum. Actually makes sense to me (a little). Since most of the loans are just serviced, the servicers have to follow investor guidelines and they are working with the investors to make the guidelines more transparent.
That is all for now, I will add more later.
-
Permalink Reply by Melanie Ross on
-
Jeff,
I did not look far enough for the comments at the way down!
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons