Navy Federal. What a nightmare. Working on short sale for over a year now, finally received approval from first lien holder (PNC, Freddie backed loan) and now Navy (home equity second lien) states it will not accept the standard $6k payoff as we were led to believe all along. Navy requiring loan paid in full on new promissory note. Thoughts? I am reading now, this is fairly common practice for them. Balance due is 22k at 6.5%. What is a reasonable starting point to negotiate these terms? Can short sale proceed? Anyone have luck with Navy taking the $6k from first lien?
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Have you escalated to any management contacts and shown them proof that the 1st lien is FHLMC backed? Is there any amount they would be willing to settle the note for in less than full?
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com
Navy Federal states we have the financial ability to pay our loan. They offered reduced terms which are acceptable. Still not sure if PNC (primary servicer) will accept this. PNC states NF has to accept $6k or no deal. Under Freddie guidelines, is it possible to continue with short sale under these terms? Is it allowed for us to settle with second and let first continue with the short sale? This way, PNC would make no contribution to the second (Navy Federal)
Freddie Mac doesn't allow subordinate liens to pursue if they agree to a short sale to my understanding.