I have a $2M SFR loan assigned to Carrington from Wells Fargo in early 2012. I have an investor who has asked if he can negotiate a Short Sale and have the existing 1st be Novated with him as the new borrowner and a release for the existing borrower. A quick on-line title search shows this loan was sold by Wells Fargo in 2006 to a CDS pool. I explained to the investor that a Short Sale is what is says, a Lender accepting payoff less than the balance + accrued interest. Meaning new money not a novated reduced loan balance assumption, a hybrid new 3rd Party HAMP if you will. I can't imagine a CDS pool Lender considering, let along accepting, this approach, nor have I never run across or heard of this. Any similair experience or comments will be much appreciated...
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Sounds like this "investor" either:
1) Thinks he has some new Guru/innovative type approach that no one else knows (yeah, right), or
2) Doesn't have the cash and or financing to do a regular short sale
If he is legitimate and does have the resources....well, sounds good on paper, but ain't going to happen.