Provident Funding's refusal to do a short sale.... despite sales contract that's higher than appraised value...!!
Can someone advise on this Illinois home sale...?
Provident Funding is refusing to agree on a short sale for a homeowner who has a financial hardship.
Three separate sales contracts have already been submitted. The third contract submitted included a fee appraisal for the property. The contract price was for $5,000 more than the appraised value.
Again, Provident refused to move forward on a short sale for the borrower. Property taxes have not been paid by either the homeowner or Provident Funding since 2010. The borrower has not made mortgage payments for about 6 months now.
Any suggestions??
Thank you
Ted Breden
Replies to This Discussion
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Permalink Reply by Joseph Alfe on
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what, specifically, is the reason for the rejection? Is borrower in hardship? Are they delinquent? Is loan owned by Provident (unlikely) or an investor?
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Permalink Reply by Ted Breden on
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Provident does not give a reason other than they want a full payoff of the first lien. The reason the appraisal was submitted with the third contract was because Provident (with the first BPO and offer) said their was enough equity to pay off the 1st lien in full. That was more than 9 months ago.
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Permalink Reply by Bill Dobbins on
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I had a Provident short sale sold close to appraised price after more than 6 months of working with them we got approval but they would not forgive ANY deficient amount.
They were informed that in our state if it goes to foreclosure all deficient amounts are forgiven as long as the loan was used to purchase the home.
I couldn't believe it so I made many many calls and I finally got high enough in the food chain to have a manager tell me that they tell all of their investors Provident will forgive no deficient amounts on a short sale.
That was two years ago it might have changed but I don't think so.
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Permalink Reply by Renee OBrien on
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Tell the seller to agree with a promissory note, then try to get the attorney to negotiate a judgment waiver. If they go into foreclosure they still don't get a waiver, so this is the best way to eat through the deficiency. If it goes into foreclosure the bank tacks on all their fees to the reduced sales prices and can come after that amount, with renewed right to do so every 7 years. This is still going to be the best option for your seller. Or put the promissory on a subsequent BK....
If they walk away they will still be haunted by the debt....
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