Comment

Comment by Ben Benita on January 7, 2011 at 6:47am

Thanks for the compliment....lots of "time in the trenches" and a never ending devotion to "beating the banks"!!!!

 

;-)

 

Comment by Ben Benita on January 7, 2011 at 5:57am

Michael - NICE NICE NICE....I am impressed, you have done your homework!!!!

Though I do not know everything on your file, I would bet it is the usual story, you just need to get to the person at DB that makes the decisions, and, more importantly, get them to listen to reality.....it may take a few hours to find that person, and, once you do, it may take a few days to catch them on the phone, BUT, certainly worth the effort if your commission i on the line.

 

Also - do not be afraid to have the homeowner make a few calls as well (assuming they are with you on this and NOT at the "I don't care what happens" phase).

 

After all, you are helping them avoid foreclosure and the nasty consequences thereof!!!

 

Keep fighting!!!

Comment by Michael Schneider on January 7, 2011 at 3:59am

Ben,

In this case, the coverage ratio in on total debt, not the loss amount.  So, there is a fixed cap of $70,000 payable by Radian at time of loss, whether it's a short sale or a foreclosure.

The loss amount on the short sale is $80,000, whereas under foreclosure it is probably closer to $110,000.  So, the two scenarios are:

1. Short-sale now.  In this case Radian pays $70,000 and the Deutsche Bank loss is $10,000.

2. Foreclose:  In this case Radian pays $70,000 and the Deutsche Bank loss is $40,000.

Deutsche Bank bears the full incremental loss, as the Radian payout is capped.  But, by the terms of the contract, the sale must be approved by Radian, and Radian has the right to pursue.

So, Radian is being rational, I think, as they are probably better off with the foreclosure anyway.  Defer the loss.

Deutsche Bank is a different story, I think. They will have a larger loss under foreclosure.  So, I'm trying to get Deutsche Bank to pay a portion of the increased loss to Radian, in order to resolve the debt now and mitigate their loss now.  Meaning, agree to accept less than $70,000 from Radian, in return for Radian approving the short sale.

I'm not certain that this makes sense entirely for Deutsche Bank, as I don't know the precise details of their contract, but it seems to, at least to me.

The reality is that the homeowners have choice.  They can choose to stay in the house, not pay, and force DB to foreclose/evict.  Moreover, CT has mandatory mediation.  So, they may not be able to foreclose in any reasonable timeframe.  Moreover, the homeowners are insolvent and can choose to file for bankruptcy.

The reality is that DB needs the cooperation of the homeowners in order to mitigate the DB  loss. So, dictating unacceptable terms just increases the DB loss.

Basically, Deutsche Bank will force the homeowners into an option under which Deutsche Bank loses.

Sorta like Napoleon and the Russians.  Napoleon forced the Russians into a strategy that was the only way the French could lose.

 

Comment by Ben Benita on January 6, 2011 at 7:44pm

1)  DB (and ALL Investors) never want to speak with agents, that is why they pay Servicers and make it VERY difficult to reach them.....you need to know how to approach them for help (PLAY NICE AND PLAY UP THE SELLER HARDSHIP) in order to get answers

 

2)  You need to ask Radian what the "coverage ratio" is...this will tell you the percentage of loss they will be paying out if the home goes to foreclosure.

 

There ARE occaisions where the Investor, DB in this case, will actually make more money foreclosing....

 

Example:

$300k is owed on the property

home is worth $200k

you get a short sale offer for $200k and THINK youa re all good

You later find out the coverage ratio for the $100k loss is 10%, and, you now are facing an uphill battle.

 

Why - because if the lender forecloses, they will get roughly $200k when they take back the home and sell, BUT, they will also get a check for $10,000 as per the MI, (10% of the $100k loss)

 

Another reason to always do your homework (ask in the very beginning of your short sale if their is MI..... if so, find out what the coverage ratio is.

 

If it is high for your area, STRONGLY consider passing on the listing......it is easy to pas son listings if you are doing your marketing and have your phone ringing with motivated Sellers!!!

 

;-)

Comment by Michael Schneider on January 6, 2011 at 3:30pm

Right now, Deutsche Bank is a rock, Ben, not, they rock.

DB, or probably more the MI company, Radian, is insisting on a $35,000 promissory note at closing, from insolvent sellers.

They don't seem to understand, or perhaps care, that they have no way to force the sellers out of the house in any reasonable timeframe.

Basically, the offer is:

Leave not and give me a $35,000 promissory note.

Or, live rent free for another year, then leave and declare bankruptcy, with no further obligation.

It seem a bit thick,  just let them sell the house, then DB/Radian can get the proceeds.

Comment by Jim Schneider on December 22, 2010 at 5:46pm

Wow, DB really doesn't want to speak to agents! I faxed my Letter of Authorization over twice. When I called to check on it the secretary put me into a pre-recorded message with no place to even leave a message. When I called back SHE was pissed off! Go figure, she still can't find my LOA, I sent it again, I'll keep trying back until she can't ignore it.

Comment by Pam Martin on December 20, 2010 at 4:00am

Thanks I am going to give them a call this morning! Wow I am dealing with a 2nd Chase they have charged off loan to this hard ball collections agency. They are saying the investor who is Deutsche is not going to release lien unless the seller brings 12K to the closing table.  Wish me luck!

Comment by Ben Benita on December 9, 2010 at 3:30am

Best site for Deutsche Bank:

http://www.db.com/en/content/contact.htm

Deutsche Bank AG
60 Wall Street
NEW YORK, NY 10005
USA

Tel: +1 212 250 2500


General Number - 714-247-6000 - they are open 8 to 5 PST...start here but play nice

Deutsche Bank ROCKS if you get in direct touch with them and explain your situation.....I did this and was able to get a short sale complated that an attorney had been working on for almost 3 years!!!!!

It was 4 months from the day we took over the file until closing....GIDDYUP!!!!!

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