Has anyone dealt with DCU as a second on a short sale????

I have been negotiating short sales for more than 4 years and this is the first time I have gotten a flat out denial from a 2nd. The lawyer that is helping us with this too has never seen this happen. We have the approval from WF and they are allowing 10% of the 2nd to be paid to them and the seller will contribute 1k for a total of 7k. DCU is still dening the short sale. DCU is claiming the seller has no hardship, even with curtailment of income and eventhough is not paying the 1st or the 2nd they are still dening him. Anyone out there that can help will be greatly appreciated!

thanks!!!!

Irene

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Permalink Reply by Jaryd Ruffner on August 18, 2011 at 7:11am
This might be a long shot but do you have a negotiator at Wells fargo that will contact them directly given the circumstances? Sounds like they need a reminder of how they'll make out on this deal should the home revert back the the 1st.
Permalink Reply by Irene Medina, PA CRS GRI CDPE on August 18, 2011 at 7:17am

Yes, that is my next step. The lawyer reminded DCU of this and it still didn't help. the lawyer is going over the file one more time to see if there is anything he might of missed that he can go back to DCU with. If it doesn't work then I will see if WF can intervene.

Thank you for your response!!

Permalink Reply by Jeff Payne on August 18, 2011 at 7:27am
Credit Unions are tough to deal with usually because they are small and don't always understand the short sale process.    PLUS they are member owned and can have different rules about this type of situation.  You may want to escalate this to the BOD or the CEO, should be easy enough to find them.  Our local credit union still does not understand a short sale, the last one I did with them I actually had to walk them through it step by step.  They even asked me to send them the short sale approval letter so that they could review and sign it, true story
Permalink Reply by Irene Medina, PA CRS GRI CDPE on August 18, 2011 at 7:31am

Okay, that is an even better idea. But I agree credit unions are the worse.

Thanks again and I will pass that one along to the lawyer.

Permalink Reply by John Smith on November 17, 2011 at 9:07am

What was the final resolution on this case. Were you able to Drive this to any conclusion...

Thanks

Permalink Reply by R Trip on March 31, 2012 at 5:04am

I am exactly in the same situation. Wf approved and provided 10% to remaining balance of $34K for DCU. But they flatly denied saying that there is no visible hardship like loss of jobs etc or some death in family .What they don't understand that first one wont approve short sale if there is a loss of job.My property in california .

After negotiating so long with first one and get success but because of this attitude of DCU house may get foreclosed.What I don't understand is they will get ZERO after foreclosure. Who can make these guys understand the logic if they decided to not follow.

Anyone in similar situation , any other idea . Trustee sale date is set for 10th april, so i have very less time.Will appreciate  any more input,thoughts regarding resolving this issue.

Permalink Reply by Irene Medina, PA CRS GRI CDPE on March 31, 2012 at 1:23pm

DCU stuck to their guns and we couldn't close it. Unfortunately the lawyer he went to didn't do much either. So, he ended up reinstating with DCU and going to another lawyer that was going to try and help him get a loan modification with WF. This was one of only 2 short sales that I was not able to  close in 2011. Very upsetting.

Permalink Reply by R Trip on March 31, 2012 at 3:24pm

Sorry to hear that and i am more scared about results of mine. So do you think asking DCU that we are not going for foreclosure and will renegotiate with WF to revert back short sale process will be something that convince them to come to negotiation.Because as I stopped paying the second long time and if keep paying back the first one and no longer pay to DCU they can't do anything as house is upside down so no foreclosure by them, since it is not going to foreclosure so they can't get after me as security is still there.

I am kind of confused. Will appreciate some suggestion. 

Permalink Reply by Rick Stuart on April 1, 2012 at 6:25am

This issue in CA is everything changed with regard to 2nds after Brown signed into law SB458.  Under this law, if the 2nd accepts a short sale and release of lien, they have no further opportunity to pursue the borrower for any deficiency. What they get in the short sale is it.  If they decline the short sale and allow the 1st to take it to foreclosure, although it is true they will likely get no proceeds from the foreclosure sale, they still have the right to pursue the borrower for the entire deficiency.  SB 458 was not thought through as is usually the case with government intervenes and in this case has hurt our ability to negotiate short sales with 2nds for a nominal amount (10%) of the loan balance for release of lien.

Permalink Reply by James Miner on April 1, 2012 at 12:37pm

Sounds like they will be suing the seller after foreclosure.

Permalink Reply by R Trip on April 1, 2012 at 5:16pm

Thats the reason I will prefer to revert back the short sale with 1st one as there is no point doing foreclosure and later need to deal with DCU with another lawsuit which will add to the hassle. So its best to not to do foreclosure under this circumstances.

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