I am using a attorney to do this Short sale which has been going on for a year We started with Metlife and CCO. Metlife sent it to Nationstar so as of now......
I have a Short sale w Nationstar 1st/ CCO 2nd
In August prior to getting approval on the 1st CCO wanted 4700 of a $46947.79 balance
Now we are getting ready for Nationstars approval and need a payoff from CCO
CCO said that since this loan has been charged off, all of their documents have been purged, the interest has been wiped out, and the balance is $46,947.76 and will not change (ever). When I explained to CCO that I needed this in writing for Nationstar to approve the short sale they have advised me that they sent the homeowner a letter in August She cant find it
What do I do
Thanks so much
**********************************
like buttons
Replies
Jean, what did you end up doing?
I have a first with nationstar and a second with CCO. nationstar agreed to pay 10% of the original loan amount to CCO. It is also in chargeoff status (the second). Now Nationstar wants my buyers to come up with 5k to close. argh.
We have one that we're just wrapping up that is also Nationstar (1st) and CCO (2nd).
We found that CCO requires 10% of balance for payoff and forgiveness of debt. However, Nationstar will only allow 6% of balance to CCO from the sale proceeds. And Nationstar will not allow contributions from any other parties (agents, seller, buyer) shown on the HUD-1 as going toward the 2nd lien holder (CCO).
So, our seller sent a check for the difference to CCO and we recieved a revised approval letter for the remaining 6% of the balance owed (which Nationstar approved).
Nationstar then produced their approval letter immediately upon receiving CCO's and we're headed to closing with all debt forgiven.
I would advise you get info from Nationstar on what they'll allow to the 2nd to receive. (I'm sure it'll only be 6% of unpaid balance, not the 10% that CCO is demanding). Then get CCO their extra 4% ($1,880) before closing and CCO will revise their approval letter and you can get to closing. Plus, for the mere $1,880, the seller will have his entire 2nd mtg forgiven.
Not a bad deal.
Best of luck.
linda Zemler
Hi Linda Thank you so much !
A stupid question, but does the owner have the letter? If they charged off the loan, did they also dismiss their claim?
Thanks for responding She cant find the letter
That is what I am wondering I doubt it I have a call into them