Strategic Defaults
Has anyone been successful in negotiating a Strategic Default? What was your approach with the bank and what did your "hardship letter" say? Am I correct in assuming that the lien holder will ask for a financial contribution? Can this be done WITHOUT the borrower being in default?
I appreciate any and all feedback on this one.
Elise Fay
Replies to This Discussion
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Permalink Reply by Darlene Krause on
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We had a customer who had two mortgages with Chevy Chase Bank (Capital One) and he was not behind on his mortgage payments. We were advised by the bank that Fannie Mae would not review his file until he went 30 days delinquent. So he went 30 days delinquent and we closed with no monies or note required from him. It also appeared that they would be issuing a 1099-C, as opposed to a deficiency judgment, since this was an investment property.
It depends on the lender. Each lender has different guidelines and requirements.
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Permalink Reply by Kimberley Kelly on
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Hmm.. I'm confused. Strategic default is entirely different than a Short Sale. I assume you are trying to keep your Seller from strategic default by doing a Short Sale instead????
As for the reply below, in Calif., being non-recourse, the Seller will be 1099'd for the difference of the loan balance and Sale price..on 1st and 2nd liens..not instead of a deficiency judgement. The right to pursue for deficiency is what we demand the Lenders release..otherwise it makes no sense for the Seller to do a Short Sale in Calif.
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Permalink Reply by Deidre St. Romain on
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Strategic default, MI Companies and BPO's and their value - knowing them - discussion to follow tomorrow in our mastermind group!
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