Carrington Problem--Negotiator Insisting on above Market Value and Above BPO NET! WAY Above!!!
So this one has been under contract for three months. It's a miracle that we still have the buyer.
True hardship on the part of the seller...verified. Package 100% complete (135 pages) from the beginning....Seller has now been hit with a lawsuit and is filing bankruptcy this month.
Carrington shut down their SS ops in the old location and shipped all of their files to California. We were all the way through the process, and at the last step when the company pulled it from our negotiator Gladys (who made serious progress on the file) and sent it to California to Toby Allen.
Buyer's loan done...just need Carrington approval. Buyer's appraisal came in at $240k, contract price $237,500...Carrington BPO $250k done almost 3 months ago...market has fallen further.
Two weeks ago negotiator told us that he "knew" that the investor was going to have to NET (not gross sales price) $255k which is even greater than their BPO. We went back to the buyer who laughed and said forget it and you couldn't get a loan for it anyway...VERY TRUE. We told Toby both verbally and in writing the buyer's and seller's agreed that the submitted price was the price. (Seller's an appraiser..knows this is a good fair market value)
So we finally get ahold of Toby again today (he never answers his phone or returns calls) and we are told that he just knows that the investor will have to get no less than $255k net. HE HAS NOT EVEN SUBMITTED IT AND IS REFUSING TO. This file should have been a SHOO IN!!!
Any ideas? It's not an empty threat that the seller is filing bankruptcy. Everything is in place...they were just giving it a couple of weeks to see if this would go. Their attorney is just waiting on their go ahead and will file the bankruptcy that day.
We have told the negotiator that the bankruptcy is about to be filed. We have explained in 5 different ways that it's impossible to net more than the buyer's appraisal will allow for a sales price. The net he is asking for is 45k more than the net that is possible based on the market value. If this thing goes to foreclosure (which it WILL) they will probably not even list it for $200k. A comparable foreclosure in the same neighborhood went recently for $179k.
Any ideas? We are calling to see if we can get a manager on this. Carrington is a servicer and obviously is horrible. I need to pull a rabbit out of the hat on this one.
True hardship on the part of the seller...verified. Package 100% complete (135 pages) from the beginning....Seller has now been hit with a lawsuit and is filing bankruptcy this month.
Carrington shut down their SS ops in the old location and shipped all of their files to California. We were all the way through the process, and at the last step when the company pulled it from our negotiator Gladys (who made serious progress on the file) and sent it to California to Toby Allen.
Buyer's loan done...just need Carrington approval. Buyer's appraisal came in at $240k, contract price $237,500...Carrington BPO $250k done almost 3 months ago...market has fallen further.
Two weeks ago negotiator told us that he "knew" that the investor was going to have to NET (not gross sales price) $255k which is even greater than their BPO. We went back to the buyer who laughed and said forget it and you couldn't get a loan for it anyway...VERY TRUE. We told Toby both verbally and in writing the buyer's and seller's agreed that the submitted price was the price. (Seller's an appraiser..knows this is a good fair market value)
So we finally get ahold of Toby again today (he never answers his phone or returns calls) and we are told that he just knows that the investor will have to get no less than $255k net. HE HAS NOT EVEN SUBMITTED IT AND IS REFUSING TO. This file should have been a SHOO IN!!!
Any ideas? It's not an empty threat that the seller is filing bankruptcy. Everything is in place...they were just giving it a couple of weeks to see if this would go. Their attorney is just waiting on their go ahead and will file the bankruptcy that day.
We have told the negotiator that the bankruptcy is about to be filed. We have explained in 5 different ways that it's impossible to net more than the buyer's appraisal will allow for a sales price. The net he is asking for is 45k more than the net that is possible based on the market value. If this thing goes to foreclosure (which it WILL) they will probably not even list it for $200k. A comparable foreclosure in the same neighborhood went recently for $179k.
Any ideas? We are calling to see if we can get a manager on this. Carrington is a servicer and obviously is horrible. I need to pull a rabbit out of the hat on this one.
Replies to This Discussion
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Permalink Reply by Wendy Rulnick on
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Can you send in the buyer's appraisal? Otherwise, unfortunately, ask seller for contribution to make up the difference. I just had the exact same thing with Chase.... Chase appraisal 292,000. Buyer's appraisal 243,000. Chase appraisers would not change value, got the bottom line net, buyers won't come up so seller is contributing almost 17K
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Permalink Reply by Stephanie Lim on
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I've sent in the buyer's appraisal three times now. ;-)
We don't think it's even gone to the investor. This is just the negotiator talking at this point. From what we can tell, he is trying to drive the price up before sending it to the investor.
So the negotiator is asking for a sales price of $280k on a home when their BPO says $250k and the buyer's appraisal says $240k.
The homeowner called Carrington again today and was told that they have no idea who owns the note and they didn't know how she could find out. Carrington has already offered them a dead-in-lieu and have indicated that they are willing to waive any and all deficiencies.
None of this one makes sense to me. Reminds me a lot of the Litton one I did. We were denied with no explanation at all. I turned around and resubmitted the whole package and got an approval with a different negotiator. Unfortunately with this one I don't have time.
I DID e-mail their "Consumer Advocate" group today as well as the negotiator's manager. Got read receipts for both, but no response so far. They don't like to give you the e-mails of anyone at Carrington but if you have the correct spelling of the name it's easy. And they are set up to send read receipts...so you will know it's correct.
Wendy Rulnick said:Can you send in the buyer's appraisal? Otherwise, unfortunately, ask seller for contribution to make up the difference. I just had the exact same thing with Chase.... Chase appraisal 292,000. Buyer's appraisal 243,000. Chase appraisers would not change value, got the bottom line net, buyers won't come up so seller is contributing almost 17K -
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Permalink Reply by Sherry Siegel on
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Stephanie, not too long ago--like maybe last week--someone on ActiveRain said they got fed up with the lack of progress on their short sale listing. After multiple letters by listing agent and seller to as many people as they could think of, the listing agent finally wrote to the Better Business Bureau. They got a response and got the ball rolling within a couple of days. If Carrington belongs to the BBB, you might try it and see what happens.
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Stephanie, mea culpa-mea culpa: Here's the source of the information i wrote above. Larry Story, right here on SS, is the person who came up with the idea to write to BBB. Go to BOFA Short Sales and look for his post. Title follows, in quotes.
"Former TBW loan handed to BofA then Countrywide. Found a secret silver bullet to make things move!" Posted by Larry Story on December 1, 2009 at 10:54pm in Bank of America Short Sales -
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Hi Sherry--Thanks for the info. :-) Unfortunately the sun has set on that one. I would have kept fighting for the seller as long as I needed to, but they filed for bankruptcy instead and their bankruptcy attorney told them that they didn't care what happened to the house...so they decided that they didn't care what happened to the house. I had even called Wells Fargo who after much digging I figured out was the investor. WF had "no record" of the loan or loan number or the homeowner at all...however they found it quickly to file a petition for relief of stay as soon as the bankruptcy was filed.
Sherry Siegel said:Stephanie, mea culpa-mea culpa: Here's the source of the information i wrote above. Larry Story, right here on SS, is the person who came up with the idea to write to BBB. Go to BOFA Short Sales and look for his post. Title follows, in quotes.
"Former TBW loan handed to BofA then Countrywide. Found a secret silver bullet to make things move!" Posted by Larry Story on December 1, 2009 at 10:54pm in Bank of America Short Sales -
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