I had to write about this-- maybe because of freedom of speech or just to see if anyone else finds this to be strange. I have been working on a HAFA short sale with Pennymac as the 1st loan. Pennymac offices are apparently local to my area. Long story short, we got a hafa short sale approval with a buyer's offer but those buyers wanted credit after their inspections. So, their escrow cancelled. I got an offer from another buyer with same price that was willing to do cash and waive all inspections (to avoid another cancellation). The negotiator takes a couples of days to respond & tells me that they want $25,000 more or they will foreclose on the property. I spoke to a supervisor in the short sale dept that told me that he "researched' the buyer and knew him & the buyer is a shrewd person & if he is purchasing the property it must be priced too low. The new buyer would be making money off of the property. It was clear that the supervisor did not favor this buyer purchasing the property. I thought that as long as the buyer is not related to the seller or friends with the seller and that there were no agreements with the seller, it should not matter? The supervisor said that he re-evaluated the value of the property & he is the one who approves or disapproves the offers. This is just hard for me to understand? Any ideas on what I can do? The email addresses on Pennymac's website for escalations do not work! The email bounces back. Thanks.
It is unusal for any lender to reveal specifics like you mentioned in this post about a potential buyer.
I have experienced a large percentage of servicers/lenders/investors with heavy handed bias against all investors buying short sales.
1. Ultra fast declines with no reason given.
2. Verbal demands of the seller to contribute $10,000 cash at the closing when they barely have a $1,000 to their name.
3. Approvals granted giving cash buyers only 7 days to close with no extensions allowed.
4. Counter offers with outrageous net demands which we are experiencing on primary buyers as well.
PennyMac seems to make up their own rules when it comes to doing short sales. The founders are former senior management of Country Wide and they have been making tons of money quarter after quarter. With backing from Blackstone a huge hedge fund that is constantly buying distressed mortgages pennies on the dollar they have plent of their own loans that the manage.
Since they were the ones to originally make the toxic loans and are making money again on these loans they offered many of the homeowners loan modifications that seemed really great but since they bought these toxic loans for pennies on the dollar they are still making tons of money off them.
Because unfortunately you are in thes same town as their corporate HQ you now have to contend with employees knowing
about the buyer on a personal basis really puts an added issue that should not exist with this short sale. I would probably go in person to their HQ and ask to speak to the VP of Loss Mitigation. There are quite a few Penny Mac employees on Linked In so I would also try to get an connection with one of them to see if you can go around this particular supervisor to get the short sale approved.
You can also file a complain with the Consumer Financial Protection Board against Penny Mac or at least threaten to do that.
I was able to close on one short sale with them although the commission was cut to 5%. Good Luck!
Call back to the supervisor you spoke with and record the conversation (I use Ring Central). Ask them to repeat what they told you previously abotu the Buyer.
In CA you must inform the other party you are recording the call - I do that directly on my 3rd Party Authorization so everyone at the Servicer / Lender is informed when they lookup my authorization. Once you have that recording, you can do whatever you want with it including sending it to the Buyer and then let him deal with PennyMac.
On the other hand, it's really no different from the Casinos in Las Vegas banning consistent winners from gambling / winning at their casinos. When someone is taking money because they are smarter than the lender, the lender doesn't like it.