WF/ASC as servicor- (DEUTSCH PMSR investor). DECLINED short sale because property is now land. Can any one HELP??

In regards to a First mortgage lein with ASC as servicor and apparently DEUTSCH PMSR as the investor. I submitted a qualified package to ASC and all was looking good until BPO and Appraisal were returned to the negotiator. At that point the negotiator closed the file and declined to entertain a short sale since the dwelling has been demolished and now only vacant land, which is a violation of the original mortgage terms signed by the borrower to the lender. I have been trying every one at every level in the chain of command and all are directing me to a Mr. B. Fuhr which is acting as a buffer placing me at the dead end. we tried seemingly every thing for the past 18 months but as of now no luck cracking this issue. At one point I was told something about some technicality with some insurance claim but clearly not given any facts or leads to dig in to. The original mortgage was 925k commenced as an 'investment property', 75%LTV with no MI. The insurance company declined to pay up since the property was vacant 60 days prior to the fire at the adjacent building. The fire caused subject property to be 'unsafe',the Dept of Buildings condemned it for demolition.
Your thoughts and comments are very welcome.

Thanks

Views: 298

Replies to This Discussion

This transaction will never close as a short sale. It sounds like the property was likely not insured properly prior to the fire (it should have been insured as "unoccupied property"). Also, it's likely the investor will have claims to be levied and possible fraud investigation / charges against the owner / mortgagee.

If it were me, I would not waste another moment of my time on this deal. It will very likely be tied-up in legal proceedings between all of the parties for many months, if not several years.

Best of luck,

Thom Colby
Newport Beach, CA
I concur with Thom- close your file on it and move on.
Hi Shabsi. What a very unfortunate story. The owner needs to run to the nearest attorney's office and seek legal advice. This is certainly a legal matter.
I think everyone is right get our of the middle of this one fast, tell your client to get a lawyer

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