Third (2)

My client is doing a short sale on an investment property. Sales price is $175,000. The first mortgage, Citi, Is taking a short sale and allocating $4,500 towards the second mortgage which is 5th 3rd.

5th 3rd wants the entire remaining balance of $40,000 to be repaid by the seller. 5th 3rd wants the seller’s current 2nd mortgage on the investment property to be transferred as a third mortgage on the seller’s personal residence. The seller may have maximum $5,000 to $10,000 equity in their personal residence, but not really if you factor in selling costs and closing costs.

5th 3rd demands, per some “policy”, to have the seller encumber his personal residence up to 140% of its value.

 

5th 3rd also disregards the seller’s financial statement. The financial statement shows about $2,000 monthly negative including the loans that are included in the short sale. After the short sale, the seller will be barely breaking even.

 

5th 3rd claims that according to his credit report he has $2,000 of discretionary income, even though the CREDIT REPORT DOES NOT REFLECT most of his expenses such as groceries, baby expenses (two babies), utilities and most of the expenses needed to run a household. 5th 3rd is plucking numbers out of air and is unwilling to explain their math.

 

The sellers refuse to jeopardize their personal residence and the roof over their babies’ head and are ready to pull the trigger on a chapter 7 bankruptcy to shake loose of the problem. They have spoken to a BK attorney who confirmed their chapter 7 eligibility. The BK attorney has sent a letter to 5th 3rd clarifying the situation.

 

5th 3rd also states they would rather get ZERO dollars in a foreclosure and bankruptcy rather than $4,500 now! Does 5th 3rd get reimbursed more by TARP or other source if they get ZERO from the seller?

 

We have appealed and escalated to a manager, but 5th 3rd’s answer always comes back the same: FIRM DENIAL.

We now want to escalate as high as we can. Does the group have any experience, suggestions or contact info within 5th 3rd?

A similar situation was previously posted at http://shortsalesuperstars.com/group/fifththirdbank/forum/topics/lisa-i-am-in-the-same-boat-as . I have not been able to obtain the phone numbers that were offered in that previous post.

Any help would be greatly appreciated. I have not run into such a brick wall in the hundreds of liens I have negotiated.

 

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Successful Short Sale with Fifth Third Bank.

Avoid foreclosure. Another successful Short Sale Closing with Fifth Third Bank.Mortgage amount: $185,000.00Sales price: $87,500.00Lender agreed to 3% in closing costs and a 6% commission.Net to Lender: $77,078.00Fannie Mae was the Investor and there was Mortgage Insurance (MI).Challenges: The Mortgage Insurance company started out wanting $60,000 in any combination of cash and/or promissory note. We negotiated for 2 weeks. The Seller ended up bringing $1,000 to closing. No note.The first Buyer walked after keeping the property off the market for 60 days. The 2nd Buyer closed 38 days after going under contract.Total time from placing it on the market until closing: 205 days.Seller testimonial:Dear Bryant"I want to personally thank you for your exemplary handling of our recent real estate transaction. From day one you were a professional; courteously and patiently guiding me through the entire process. Your response time was unparalleled; you responded to my emails and phone calls within minutes, as if I were your only client!And I believe that’s what every seller (and buyer) wants – to get the idea, or enjoy the feeling, that Bryant Tutas is their exclusive agent! I tried quite a few real estate agents before I finally came to you, and you jumped into action from day one! My property had been on the market for more than a year; within days of contacting you I had my first real offer, and very soon the house was in contract. We just closed a few days ago, and I am so grateful for all your help. Thank you Bryant, for everything!"Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
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