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Second Mortgage of 75K Refusing to Participate in HAFA and Demanding 34K

Posted by Kimberly Boudier on August 18, 2011 at 10:13am in Short Sale Discussions

Does anyone know of any options for a seller when the second mortgager PNC refuses to particpate in HAFA? Has anyone seen the first mortgages allow the seconds through a regular short sale receive 30K when the first is being shorted by over 200K?

 

Thank you,

Kim

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Replies

  • Kevin - Greenville, SC February 29, 2012 at 7:29pm

    http://www.pncmortgage.com/Libraries/Important_Documents/HAFA_Eligi...

    PNC Mortgage Escalation
    • Escalation is handled through the Executive office.  The email address for
    complaints is: executive.office@pncmortgage.com.  The mailing address for written
    complaints is:
    PNC Mortgage – Executive Office
    3232 Newmark Drive
    Miamisburg, Ohio 45342

    http://www.realtor.org/wps/wcm/connect/04cbb28045cc9f638a5ecb342c47...

  • James Miner February 27, 2012 at 4:46am

    Here is Phoenix it is very difficult to find anyone who will take a PNC short sale.  They pride themselves in getting nothing vs. something.  When management has that mind-set it is very difficult to achieve a successful short sale.  The norm is PNC wants 50%.  

    I do believe PNC is responsible for the increase in Gin sales.

  • Jan Sanderlin February 26, 2012 at 7:09am

    Yes...I'm in one now and have completed many in the past.  You will need to get everyone on the same page with a 10% payment to the 2nd...PNC knows that if they were in the same position that they would never accept less than 10% in 2nd position...Forget about the shortfall and concentrate on current market value and the loss to both lien holders if this forecloses...Focus on this and you'll more than likely be able to pull the two ends together...It is not uncommon for those large seconds to refuse to cooperate in HAFA shortsale, and in fact be proactive in the beginning and have your sellers decline a HAFA short sale so that you don't waste time being rejected.  If the 2nd debt is above 75k you are going to meet with resistance to hit a HAFA home run.  When in running into roadblocks, escalate, escalate, escalate...Good luck!

  • Mary K Foster February 26, 2012 at 6:53am 
    oh please give me that contact you talk about. I am having an impossible time  with PNC handling an ETrade second , it is a HELOC, for 47,000 and the seller  had valid hardships. Many of them. Out of the 47K PNC is asking for 40K and does  not care where it comes from. The first offer to them was 4K from the sale of  the home, Citi is the first and there is enough money in the sale to pay them in  full. The sale was postponed once and we were warned they won't postpone again  waiting on PNC :(. Well PNC is dragging their feet big time, saying they are  understaffed! So we got the buyer up 5K and squeezed title and now PNC is  getting 10K up front and after speaking to an attny my seller agreed to sign a  30K promissory note. But their first request was to get all 40K at closing. The  prom note is unsecured of course and is over a period of time and seller is  requesting 0 interest on it. We are waiting for a decision. But of course if it  goes to auction, the second gets nothing and seller will file chapter 7, so they  can't collect on the debt. Why is PNC so pig headed!! ??? Thanks for any help.  Oh and i have spent so many hours on this short sale, my toughest by far!  I want this to close, and my seller wants it to close and not have to file BK! Reading this thread has me furious about their bailout, from the Feds! Any help with contacts or ideas that will work fast would be greatly appreciated. Everyone involved in this transaction has been very cooperative except PNC! Waiting for an answer about the 30K prom not and 10K at closing. Provided the first extends the sale date which is this week. I had to use a high up executive to even get that considered. Citibank is ready to foreclose and not wait on PNC to make their decision. Again, I don't get it? Left speechless, they would rather take nothing? Wow
  • Jeffrey Burnham February 26, 2012 at 5:53am

    PNC is a NIGHTMARE!! I just closed with them on a 1st loan....it took calling VPs when they bubbled back and forth between them and their subsidiary Cardiss for months.

     They ultimately did get the deal done...7 months later with Buyer #2. They told my Buyer he was ineligable for HAFA...and since he had gone back to work, could now afford the payments! (Which unfortunately was true.)  They insisted on a promissory note for $10k, which I got reduced to $5k. The note said they would discount down another 15% immmediately after the deal closed. PNC blamed the M.I. company for the promissory note. I know they will also take 50% for  a lump payment (they told my Seller this after it all closed.) All in all, it was a good deal for my Seller to get out- the house had turned into a money pit for him.

    • Jan Sanderlin > Jeffrey Burnham February 26, 2012 at 7:16am

      @Jeff: when they blame the MI company, get a letter from an attorney(well worth the 250.00 cost) Demanding that the MI company perform the task that they were paid to do...DO NOT let the MI company hold your deal hostage...they were paid for a certain risk and they will bluff you to reduce their loss...Don't let them...call their bluff with a threat of legal action...They will mor ethan likely settle with much less fuss. Also, request to speak with the MI adjuster, you will need 3rd party authorization from your seller exactly like you would for the bank...and yes PNC is not the greatest bank to work with but dont abdicate your seller's power to them ot the MI company! Hope that this helps!

  • Linda Susan Fox February 26, 2012 at 3:49am

    I had a short sale with PNC as the second.  The sellers owned about $35,000 and PNC would release for $3300 or forgive for $15,000 plus the $3300.  Bank of America offered $3000 and the buyer paid the additional $15,300.  All was done through the HUD1 and BofA approved.  B of A had already approved the short sale net; otherwise PNC stated to me over and over that they would close the file.  Also the sellers had to stay current on the second for PNC to allow the short sale.  They were very tough.  Maybe you could get just a release amount and get the deal done this way.

  • Bryant Tutas February 26, 2012 at 2:18am

    xx

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