Contract on 7 year old Manufactured Home (mobile) 1700 square foot double wide on foundation on 3 acres. Sellers purchased for 159,000 9/08. Seller H lost job. Now divorced. Balance now over $180,000. Seller H has 21,000 judgement post divorce. Post divorce in Missouri, home is held tenants in common. Reduced price from 149,000 to 101,000 in steps until got a contract. Recieved an extension on the 8/9 foreclosure. We have an attorney as negotiator, who has done a number of these for our office. GMAC appraiser was out of the area - approx 50 miles away in St Louis County and home are in rural Jefferson County. Appraisal came in at 120,000. GMAC asked for highest and best so buyer increased to 104,000. Attorney sent letter re appraisal-attached. Appraiser used two highest comps and said limited data and use stick built as comparable for third Foreclosures have been selling for considerably less, which attorney also pointed out in letter to GMAC. GMAC rejected contract without counter.
See attached Attorney Letter.
Where do we go from here? Any suggestions?
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GNMA is a pain in the rear, I did one a few years ago. Go get em!!
You only have a 8" thick pile, get a few more stacks and they will approve it!
Dean E Eshelman said:
Jeff, here is an update. As I said this is a FHA loan with GNMA as the investor.
EX - unemployed. Two months ago spouse receives promotion and pay raise, now house payment of $1156 is 26% of spouses gross, with 3 kids and no child support. Here we are two years into this and $80,000 underwater, now GMAC says don't qualify under HAFA Short Sale, and no moving expense of $3,000 under HAFA. What??? Is this the way the servicers try again to take it to the homeowner? Any suggestions?
The good new is that we do have a tenative approval with GNMA paying $3,000 of seller closing costs and the seller paying the attorney $1,000 of $2,500 fee and seller paying moving allowance of $1,000 which is going to 2nd lien holder on Ex's YellowBook advertising judgemetn. There is supposed to be a "waiver of deficiency", don't know the wording on the YellowBook release.
Questions:
Is that correct that they can now take the Short Sale out of HAFA?
What should I look for in the "Waiver of deficiency" and YellowBook release?
Since this was a non-cash out refi (original loan 9/08, refi 8/09 for lower rate), this will result in an $80,000 Form 1099. It should be excluded from income by a basis adjustment in the property -IRS Form 982- and then the gain on sale will fall under the $250,000 rule so no tax.
Dean, looks like you are moving forward.
Sure they can take it out of HAFA, actually I always prefer they don't use HAFA because the program is a failure in my opinion.
There should be specific verbage about waiver of deficiency or verbage that they are issuing a 1099. The yellowbook release should be very straightforward because I believe that once they release it you are good to go, they have nothing to come back on.
Talk to a CPA about the 1099 issue. Is this a primary residence? If so, no worries on the 1099 taxes
Dean, good stuff. Could we talk you into writing an article explaining tax consequences for owner occupied properties vs investment properties?
Great to have a CPA here on the site that also understands real estate and short sales
Dahhh - I sent a qualified written request and got a response back in April. You jogged my memory. This file is only 8 inches high of papers. "The current Master Servicer is: GNMA. The loan is currently owned by: GMNA, US Department of Housing & Urban Developement, Washington DC 20410-9000 and phone number 202-708-1535. However the loan is currently being subserviced by GMAC Mortgage, LLC.
Guess we be call'n first thing in the morning.
Ok, I understand a bit better now.
A QWR, Qualified Written Request, needs to be submitted in order to find out who the investor is. Have you asked the negotiator? I have never had a problem with GMAC giving me that information but most of our GMAC are either portfolio or VA.
I would never say GMAC will not order another appraisal because I have gotten them to do it before. Never say never, you just need to get to the right person.
I hate to keep beating the attorney drum but he should have already known how to find out who the investor is :(
Keep fighting and keep pushing this one until you get to someone who will take care of it, do not take no for an answer
We are trying to find out.
https://www.mers-servicerid.org/sis/
MIN 1000630-0000032923-7 MERS site says "This investor has chosen not to display their information. For assistance, please contact the servicer."
FHA 292-5411609-703-203B MERS site says "No MINs can be located that match the search criteria entered. Verify the search criteria and resubmit."
Yes, the judgement is considered a second lien (mortgage). GMAC will not order another appraisal.
Dean, I just read the letter. There is a second mortgage too?
At the very least maybe you can get a new appraisal ordered.
Who is the investor on this loan?
Understood, I guess my thought was more along the lines of how much time is the attorney going to spend on a difficult escalation as opposed to the easy files that come up. If he is willing to work hard for 1000 or 1500 and spend the time that it takes to escalate a file, you have a rare one.
As far as fees on the HUD, ALL fees from the sale must be on the hud no matter who is getting paid to negotiate the short sale.
Putting the situation on record really does nothing, it is more of a waste of time. Escalating the file to upper level management is what needs to be done as the negotiator doesn't care that the attorney put the situation on record, nor will any one else for that matter. The bottom line is that if this one is worth pursuing, you may have to get on the phone and start escalating the file.....
Keep at it, dont give up
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