The LM specialist at Indy, sent this message: "In order to continue with the short sale we will need any party to this transaction to contribute $16000.00 towards the short sale. This is a requirement."
I replied to e-mail, and explained no one has money to contribute. The LMS hasn't responded...
Problem is, seller has no money and would rather let the property go to foreclosure...
I will escalate if I don't hear anything back this week. In the meantime, does anyone have any suggestions?
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IndyMac has a loss share agremeent with the FDIC http://www.fdic.gov/about/freedom/IndyMacSharedLossAgrmt.pdf
Also, what state are you in ? If California, they cannot ask for any contribution from anyone as a condition of shrot sale approval.
Most of the time this comes through the fact that the MI company is not willing to fully reimburse the investor for the loss. The investor is not being made whole and they are looking for alternatives. Many times, they never ask the investor but it is in their delegated guidelines. Who is the investor? I might try to reach out to them directly and let them know about what their servicer is doing.
My recommendation is: 1) Have the seller complete a new hardship letter explaining that they truly are destitute. 2) have the seller's complete a new financial form to accompany the hardship letter. 3) Send this to IndyMac and ask if the investor is willing to accept a claim reduction because there are no other options.
I hope to hear the result - good luck!
Have all parties state clearly in emails to you they can't contribute and forward those to the negotiator. We do it all the time and the negotiator then has record of the request for the file.
INDYMAC is owned by a private investment firm, they do what they want. I would try to speak with a live person and see if you can negotiate this down to some reasonable amount and then ask the buyer to contribute or find a buyer who can and will.
Did you ask the seller? The buyer? Chances are someone will have to contribute something. If you can't come to an agreement then place the property back on the market and look for a buyer who is willing and able to contribute.