Comment

Comment by Tracy on March 28, 2011 at 5:55am

My loan is a Navy Federal portfolio loan.  Looks like the worst kind : (  I called the bank to get their hafa policy in writing and was told that there was nothing he could send me.  All we can do is send in a short sale package and we get a acceptance or denial and a reason why.

We owe about 40,000 more than the house is worth including fees and everything.  We are a military family with pcs orders coming.  We have excellent credit and only about 8,000 in other debt.  We have no problem paying our mortgage now but obviously we can not afford to keep an empty house and pay rent and separating our family after all the deployments... Plus I am not sure we could afford even that.  We could rent at a loss of about 300 a month not including any maintenance or time that the house is not rented.

After reading everything I am thinking that a short sale may not even be worth it if they are going to ask for a big promissory note anyways, especially considering how long it takes and all the mortgage payments we would have to make.  Can we just sell the house and take out a loan or is that considered a short sale?  

Comment by Adam Woodhall on March 28, 2011 at 4:14am

Tracy - I have not personally completed a HAFA short sale with NFCU. You can review all the rules and requirements via the HAFA website.

 

https://www.efanniemae.com/sf/servicing/hafa/pdf/hafafaq.pdf

 

Although NFCU may be listed as 'participating', they are not obligated to accept your short sale either way, so keep that in mind. Be certain your agent has prefaced their negotiator for the process.

Comment by Tracy on March 27, 2011 at 6:05pm

Has anyone closed a HAFA short sale with Navy Federal?  They are supposed to be participating in HAMP.  Who sets the rules if you qualify for HAFA?

Comment by David Cash on March 15, 2011 at 2:30pm

Good news.  Just got a refund check in the mail for my mortgage overpayment from NFCU.  Another chapter closed...keep the harrassment up.

Comment by Adam Woodhall on March 10, 2011 at 5:15am

After title fees, back HOA, etc, NFCU net from 218k was about 204k.

In your case, they aren't really getting a 195k payoff, since a large portion of that is your promissory note, which as an unsecured debt, they are in no way guaranteed the money. In their eyes, you 'could' never make a payment post closing, they would then sell off the debt eventually, etc. There is still some risk involved on their part. If the sale price is 150k, they still owe commission, other liens, HOA, all the normal fees. If you don't include your promissory note, since it won't be paid in full at closing, they are really netting less than 150k on a note where they are owed 195k. I'm not defending their actions, only observing the facts of the transaction. They are no doubt asking for a 50k note because that is the deficiency - again, they only care about themselves, however I don't doubt your agent is working in your best interest and will do their best to help you.

Comment by Jason Bettis on March 10, 2011 at 2:22am

Adam,

Thanks for the feedback and guidance.

What was the sellers payoff that sold for 218K?

In my case, CU should get a bottom line of about 150K and my payoff is 195K. Appraisal should be around 150K.

Comment by Adam Woodhall on March 9, 2011 at 3:17pm

Jason -

 

I would be very surprised if NFCU removed the promissory note completely, unless you are providing some sort of earth-shattering finacials to support it, i.e. lost your job, unemployment ran out, taking care of mentally disabled partner/child, etc. My deal with them, they asked for 50k note, I got it down to 25k, but that's it. Seller has 4 kids and 2 ex-wives...he made a fair amount but didn't take it all home...I had his ex's write a letter stating he paid more than his court mandated support (i.e. not showing up in paper), he was a great father, etc. Nothing, came back, we want the note or no deal. Oh and of course, agent takes one percent less commission for his trouble. This home had one of the best lots in the neighborhood, view of a park, all granite in kitchen and bath, stainless steel appliances, tray ceilings in master. Seller paid 350k in 2008, we sold it for 218k in Oct 2010. NFCU (any bank in a short sale, for that matter) doesn't care what you paid or what you put in, they only care about their bottom line.

 

I work in the Orlando market not far from you, and I agree with you in principle about the overall issue with banks. But there is no such thing as a 'pre approved' short sale with any bank or market, no such thing as honesty up front, no recognition for what you did for them up to the short sale. They have all the power, and as bad as it sounds, they are NOT required under any circumstance to accept a short sale just because borrower cannot or will not pay the mortgage any longer. I don't mean to sound crude, I mean nothing personal, but we are at the bank's mercy and they take no prisinors.

 

On a better note, [lease do have your agent review this forum to be well equipped for NFCU's nonsense! And if you get that note eliminated entirely without bringing cash to close, you'll be our hero!

Comment by Jason Bettis on March 9, 2011 at 2:47pm

Adam,

I'm the owner.

My agent has Short Sale experience, but not with NFCU.

NFCU holds the note on my mortgage > NFCU portfolio.

Sale is not complete - I submitted a counter offer back asking to remove the promissory note based on down payment amount $25K + upgrades paid in cash $8K + Interest paid to date (51 payments, no lates).

 

IMHO, NFCU has a very poor game plan when it comes to a Short Sales. In my case, had they been upfront (six months ago) they could have stated they will insist on closing at the full payoff price. Then my Agent could have set a pre-approved short sale price which would have been slightly higher, with a much improved potential for more buyers and more offers. This would have reduced the promissory note amount by about $10-15K. This would mean NFCU gets $15K more at closing - this makes too much since.

 

Home values in my area (NE Florida by Jacksonville) seem to keep getting worse. Thanks to greedy builders, appraisers, and bankers, this region has a unlimited supply of foreclosures.

Thanks, Jason

Comment by Brigitte Powell on March 9, 2011 at 6:16am

Good for you Dave.....wear them down :-) it's worth the effort. don't forget to keep us posted.  All the very best to you and your family

Comment by David Cash on March 9, 2011 at 5:26am

All,

I have an update from my situation.  My specialist, Wendy Todd at NFCU didn't call me back for 4 weeks after she promised they were going to send my mortgage overpayment.  She finally called me back after a helpful customer service rep sent her a callback message with her Supervisor CC'd.  She called me back that day.

She said she sent the request for my refund, but the escrow closed out before it happen.  Monday she was going to send a formal request to accounting to have them mail me a check for the overpayment.

I honestly think I will finally get my overpayment back.  I will keep you updated.

 

BTW.  I have learned with NFCU, you have to be on them everyday to get things done.  The more annoying you are, the more attention you get.  I think they depend on people being lazy and not speaking up.

 

Dave

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