I knew when I took the listing that I was going to be sorry.
We wrapped up a short sale last week, closed on Tuesday, funded on Weds, in which the first mortgage holder was paid in full, a second and third got shorted. Today I got a call from Nationstar, the first mortgage holder that there was a problem: Their payoff figure was good thru the 14th (a Saturday). That particular Saturday was followed not only by a Sunday but by a Monday that was a legal holiday. Closing was scheduled and took place on the next business day. Unfortunately, the buyer's funding was held up by the typical nonsense that we deal with these days, and the loan didn't fund until the following day, at which point, a full payoff, including the required per diem and an extra day's worth for delays, was wired to Nationstar. They are saying that they want an additional $2900 in legal fees because of the (four day, two of them business days)delay. Or else they are going to reverse the sale. These are the guys who got paid in full on a loan that they hadn't seen a nickel on since August. I am sorry, am I missing something here??? I am biting my tongue clean off to keep from saying what I want to say, but would love to hear any thoughts from others in the forum. I have given this whole dilemma to the attorney to solve (hopefully). I am ready to call the new CFPB with this one.
By the way, this was an $85,000 deal. the payoff of the first was slightly north of $61,000. When does someone at Nationstar say it's time to stop racking up legal fees on a property of this size.
Replies to This Discussion
-
Permalink Reply by Joseph Alfe on
-
Tammy I agree 100% with you. Perhaps I should clarify: Title companies are extremely important, and many fall short. In my experience, the large corporate title companies have rigid policies in place, and tend to like to play underwriter. For example, I had a short sale approval letter that had NO deed restriction. Stewart closer decided to make one of her own...and killed my deal. Many times, last minute number changes make shuffling numbers around the HUD inevitable. Sometimes items need to be moved to the buyers side, or whatever. If the closer isn't flexible, it could endanger the closing. Lastly, title closers are notorious for not following short sale aclosing instructions, thereby threatening to have the lender reverse the wire.
I have found that smaller, "boutique" title companies have a much better ability to work with us to make sure the deal closes. I have three in the Chicago are that we exclusively use, and I am finding them around the country. Title is critical, make sure you are working with one you trust. I go so far as to visit with them and help train their closers on what is expected of them in a short sale. For the record, in Chicago, Greater Metropolitan, PNTN, and Baird & Warner are excellent. In the mid-East, Meridian Title and Laurus are top notch. Florida has Suncoast.
-
Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
-
And full -disclosure, your license is with Baird and Warner, correct ?
-
-
Correct, currently, my license is inactive and held in the B&W Holding Co.
-
Permalink Reply by Jill Ford on
-
we lived up to the conditions of the approval letters of the two shorted lenders, since when do we need an approval to payoff a mortgage in full?
-
Permalink Reply by Tammy Davis on
-
This is a title/escrow issue. As a previous escrow officer for many years...it is the responsiblity of the escrow agent to confirm payoff and adhere to the payoff demand letter. They are the ones who will be on the hook under the terms of the title policy that they have issued to the buyer and their new lender...if the previous lender does not release the debt from the property.
Don't stress....not your issue....from what you have explained.
-
-
I got word this afternoon that this deal has resolved--legal fees have been waived. Apparently, according to our closing attorney, the substitute trustee/attorney for the lender was not the source of the fees, it was Nationstar ANTICIPATING that there would be fees. Such BS!!
-
Permalink Reply by Ban KKiller on
-
Nationstar is not here to help you or anyone else but themselves. They have no decency and, worse, no common sense. They rely on intimidation and the misstatement of facts to fool people. Please read ANY Pooling and Servicing Agreement and you will see that the name of the game for Nationstar is FEES, EXPENSES and just more money. Not surprised at all about Nationstar.
- ‹ Previous
- 1
- 2
- Next ›
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons