Replies to This Discussion

Permalink Reply by Ricky D. Ostrom on January 20, 2011 at 11:22am

I've worked a PennyMac short sale and it went smooth and quick.  Took around 1 month and got deficiency judgment waiver.

Permalink Reply by bethany on January 20, 2011 at 2:17pm

Thanks Ricky.   One month from first contacting them to approval?  I've never worked with a bank like this one - one that seems to focus on bad loans.   Had one offer, pannymac counter offered.   The couple walked.   Just submitted another offer matching pennymacs counter.  Wondering how long before I might hear anything.

Permalink Reply by Ricky D. Ostrom on January 20, 2011 at 2:47pm

Yeah, it was pretty fast.

 

You have to understand that PennyMac buys these loans in bulk, paying somewhere around 30 cents on the dollar.   So, if your offer is 50% of what is owed, they still make money.  A no-brainer for them.

 

BTW, my deal started with Citi Mortgage and then the loan was sold to PennyMac.

 

bethany said:

Thanks Ricky.   One month from first contacting them to approval?  I've never worked with a bank like this one - one that seems to focus on bad loans.   Had one offer, pannymac counter offered.   The couple walked.   Just submitted another offer matching pennymacs counter.  Wondering how long before I might hear anything.

Permalink Reply by Michael Schneider on January 30, 2011 at 4:48am

My experience with PennyMac was pretty much the same as Ricky's.  But, this will depend on the Investor.  PennyMac services on behalf of others, and ther Servicer will follow the specific Investor's guidelines.  Pennymac was started by ex-Countrywide people in anticipating of massive sales of distressed assets.  But, I suspect that most of their money is being made on Servicing, not returns on purchased loans.

Permalink Reply by bethany on February 2, 2011 at 6:33am

Thanks Michael.   What your timeframe with them once they had the whole package including an offer?  you think about a month?

Michael Schneider said:

My experience with PennyMac was pretty much the same as Ricky's.  But, this will depend on the Investor.  PennyMac services on behalf of others, and ther Servicer will follow the specific Investor's guidelines.  Pennymac was started by ex-Countrywide people in anticipating of massive sales of distressed assets.  But, I suspect that most of their money is being made on Servicing, not returns on purchased loans.

Permalink Reply by Michael Schneider on February 2, 2011 at 6:41am

It was 35 days from submit to approve.  I have done only one PennyMac short sale.

They reduced the commission to 5%, per investor guidelines, btw.

Permalink Reply by bethany on February 2, 2011 at 7:33am

we already have an approved amount from them.  the first buyers walked.  we sent in a contract matching what pennymac wanted.  i'm wondering how long until we hear.  did yours take 35 days from the very beginning?  Was there any going back and forth on the offer in those 35 days?

Thanks!

Michael Schneider said:

It was 35 days from submit to approve.  I have done only one PennyMac short sale.

They reduced the commission to 5%, per investor guidelines, btw.

Permalink Reply by Michael Schneider on February 2, 2011 at 7:42am

Bethany,

Yes, 35 days, from start to approval, first and only buyer.  Yes, there was quite a bit of "back and forth".  If you are sending in a new contract from a different buyer relatively soon after "buyer walked", then they may approve quickly, and they have the appraisal, title and valuation work done.

And, I should have added that they cut the commission to 5%, but did approved other "optional" fees that were very helpful in completing the deal.

Overall, my one experience with PennyMac was very good.

Permalink Reply by Kenneth Kelley on August 24, 2011 at 4:44am

Does anyone have copies of the paperwork that are required or can we use a generic information form?