Replies to This Discussion

Permalink Reply by Kent Dills on February 25, 2010 at 5:42am

Scott, I think loan mods and short sales are handled by same department (loss mit./loan resolution) as is the case with most banks/servicers.

Stating that a loan mod was applied for and turned down shouldn't hurt anything at all. In fact, it should just support the financial hardship case!

Permalink Reply by Ben Benita on February 25, 2010 at 5:46am

REALLY depends on many factors, the big one being why it was denied? What was the reason given on the denial? What is the hardship? Was it only denied for the HAMP program? MOST loan mods., unless not eligible b/c of how they were securitized, will get approved if the Buyer's monthly income and expenses are within 15% of each, or, the DTI (debt to income ratio) is over 31%. If you are headed down the short sale road.....best of luck....I have been doing them for 4 years and can tell you it could be a long battle!!!!

Permalink Reply by Ben Benita on February 25, 2010 at 5:50am

As far as mentioning the denial on the short sale, lenders DO NOT CARE what the ahrdship is. For short sales, it is simply a numbers game. The Phase I negotiator, or processor, merely checks to be certain you sent in the hardhsip letter (along with all the other docs). 90% of the time the letter is not read and the ONLY document they review is teh settlement statement. The only real time a hardship comes into play is near the end of the short sale if you need to negotiate on the numbers or terms......you can play up the Mr. and Mrs. Jones are getting divorced, jost lost their jobs, etc. Tugging on the heart strings is dirty in negotiations, BUT, often effective when dealing with higher ups at the banks.....Also, if you are converting to short sale BE CERTAIN the lender knows this. We have taken over post loan mod. deinal and lost several weeks b/c the Servicer, CITI in your case, did not convert the file from Loan Mod. to Short Sale....

Permalink Reply by Scott R. Fuller on February 25, 2010 at 6:28am

Great info Ben, thanks very much.


Ben Benita said:

As far as mentioning the denial on the short sale, lenders DO NOT CARE what the ahrdship is. For short sales, it is simply a numbers game. The Phase I negotiator, or processor, merely checks to be certain you sent in the hardhsip letter (along with all the other docs). 90% of the time the letter is not read and the ONLY document they review is teh settlement statement. The only real time a hardship comes into play is near the end of the short sale if you need to negotiate on the numbers or terms......you can play up the Mr. and Mrs. Jones are getting divorced, jost lost their jobs, etc. Tugging on the heart strings is dirty in negotiations, BUT, often effective when dealing with higher ups at the banks.....Also, if you are converting to short sale BE CERTAIN the lender knows this. We have taken over post loan mod. deinal and lost several weeks b/c the Servicer, CITI in your case, did not convert the file from Loan Mod. to Short Sale....

Permalink Reply by Cindy Jones on February 25, 2010 at 7:21am

I have the same situation. We did mention it in the hardship letter but at the moment we don't have an offer on the property to take the next step.

Permalink Reply by Ben Benita on February 25, 2010 at 8:52am

no worries...glad to help....

Scott R. Fuller said:

Great info Ben, thanks very much.


Ben Benita said:

As far as mentioning the denial on the short sale, lenders DO NOT CARE what the ahrdship is. For short sales, it is simply a numbers game. The Phase I negotiator, or processor, merely checks to be certain you sent in the hardhsip letter (along with all the other docs). 90% of the time the letter is not read and the ONLY document they review is teh settlement statement. The only real time a hardship comes into play is near the end of the short sale if you need to negotiate on the numbers or terms......you can play up the Mr. and Mrs. Jones are getting divorced, jost lost their jobs, etc. Tugging on the heart strings is dirty in negotiations, BUT, often effective when dealing with higher ups at the banks.....Also, if you are converting to short sale BE CERTAIN the lender knows this. We have taken over post loan mod. deinal and lost several weeks b/c the Servicer, CITI in your case, did not convert the file from Loan Mod. to Short Sale....