Advise needed on NJ Short Sale. Seller has 1st & 2nd lien on property, with 2nd being a HELOC.
1st is with BOA for Fannie Mae; 2nd is CLC or PNC for Etrade.
Turns out seller had a HELOC loan with ETrade in 2005 for $35K
Seller refinanced in 2006 (BOA). ETrade loan was paid in full at closing, but according to seller,
allowed to remain open. Title company that closed refinance in 2006 did not subordinate ETrade
or file loan paid and closed w/county clerk. They also never issued the title insurance policy after closing.
Sellers reused the line of credit after the refinance.
Title company goes out of business.
Sellers faced hardship and requested Short Sale.
BOA approved short sale and will allow ETrade 6% of outstanding $35K.
ETrade says they are 1st and want $35,000.
BOA will not allow ETrade to get $35K no matter where it comes from.
BOA says their loan is a Fannie Mae loan and they will go to foreclosure, since they feel they have a 1st loan. They claim Fannie Mae will not make any exceptions even though I have sent all documentation to them.
Anyone have an escalation name and number for Fannie Mae
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These sellers need to speak to an attorney. Not sure what you feel Fannie can do but here is their info:
The Fannie Mae Resource Center can be reached at 1-800-7FANNIE (1-800-732-6643) Monday through Friday, between the hours of 8 a.m. and 8 p.m., Eastern Time.
EM: resource_center@fanniemae.com
You will need to send them a Letter of Authorization before they will speak to you about a specific file.