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Hi,

I'm seeking relief after the fact.  Please bear with me.  I contacted Sun Trust  seeking advice prior to submitting an application for Short - Sale to help with modifying my 1st and  2nd trust with them.  I was advice by Sun Trust staff to STOP making loan payments and submit an application for a short-sale since I would not meet the criteria for a modification.

I did everything to the letter.  Nine months later a letter of approval arrived for both the 1st and 2nd trust.  The borrower had waited for nearly 6 months and bailed out on another offer for a larger home. The 2nd buyer didn't wanted to wait 30 - 60 days for settlement as well.  I was fortunate to have a 3rd buyer soon after approval letter arrived, however Sun Trust indicated the process would need to start all over again.  While waiting for the approval one again, Sun Trust lost the file and require a whole set of paperwork again.  With the numerous delays and changes in loan processors, I was given 1 day notice that my home would be foreclosure the next day regardless of approval pending for last buyer.

I am now being sued by the 2nd trust for breach of promise for 103K.  Do I have any recourse.  I feel Sun Trust deliberately held up the short-sale proceeding.  Sun Trust refused to speak with me since a realtor was representing me.  

Do you know of anyone who handle class-action suits against Sun Trust for their delay tactics, negligence, and overall incompetence in handling my case and countless others.  I do not have the means of paying a bankruptcy attorney and fear losing what remaining assets I have.  Can anyone offer me any help and/or hope.  I would really appreciate it.

Nikki M.

202.526.0917

Glendale,  CA Real Estate – Some lenders are very stubborn about collecting what they feel they are “rightfully owed.”

These lenders are usually a lender that you originally got the loan from. A good example is a credit union loan, or a small community bank.

Another common type is loans that were granted with Private Mortgage Insurance. In our experience, these companies are very demanding.

They negotiate hard and say they will not approve a short sale without a promissory. However, that is not always the case!

You can often convince them to waive the deficiency if you do the following.

1. Prove to them that you don’t have any assets or any extra monthly income.

2. Prove that your home is worth what the buyer is offering on the short sale. This is your agent’s job to do. Your agent will put together an agent’s version of an appraisal.

3. Prove to them that you have been "advised by your attorney" that the best course of action is to file a Bankruptcy after either a successful short sale or foreclosure! I've done this quit a bit and have been extremely successful in getting the 2nd TD lender to "waive the deficiency verbiage" on the Approval Letters!

This will include comparable sales and what your property is worth, based on those comparable sales. Your agent will show them that they are better off accepting the short sale.

If you have presented your case well and the lender buys it, then they will usually waive the deficiency or promissory note and accept what they can get. After all, something is better than nothing. Make sense?

Another option is to hire a good lawyer to negotiate for you. Look for a lawyer with experience in bankruptcy.

They can use the threat of bankruptcy to convince the lender to approve the short sale with the deficiency waived. Bankruptcy is very bad for creditors.

If you declare bankruptcy, then it could take 12-18 months before the lender can sell the house. Their right to collect from you would be wiped out in bankruptcy.

A short sale where they get their money today is a much better option. That’s why they’ll usually take that option when threatened with bankruptcy. Thinking about a short sale?

Thanks for reading this, Jennifer Escobar.

Jennifer is a Real Estate Agent at Qwest Real Estate.

My BLOG: www.Glendale-ShortSales.com

Glendale Short Sale Specialists | Burbank Short Sale Specialists | Granada Hills Short Sale Specialists | North Hollywood Short Sale Specialists | Van Nuys Short Sale Specialists | North Hills Short Sale Specialists

I write a blog about various interesting tax issues.  Several of my posts have been about short sales.  Below is the most most recent development

CCA 201102058

Last month I wrote a post about IRS allowing that a carve-out by a lender for transfer taxes does not create equity in their lien.  That burst of generosity is followed this month by even more beneficence.  If under the Home Affordable Foreclosure Alternative program, the senior lender provides a taxpayer with $3,000 in relocation assistance, they can actually use that money to pay relocation expenses.  The full text of the ruling is below:


In consultation with the Collection experts in Counsel, below is the answer to your question concerning whether the IRS can require a taxpayer to pay the IRS the amount of relocation expenses as a condition of discharge. Recently, the Treasury Department introduced the Home Affordable Foreclosure Alternatives (HAFA) program. The HAFA program took effect on April 5, 2010. Borrowers who participate in a HAFA transaction are eligible for $3,000 in relocation assistance. If the senior lender provides the taxpayer with the $3,000 relocation assistance required under the HAFA program, the IRS cannot require the taxpayer to turn the $3,000 over in exchange for the lien discharge. The HAFA program payment is a payment directly made to the taxpayer to assist in relocation. As such, the relocation payment has no bearing upon the taxpayer's equity in the property under a discharge analysis. Rather, this is just a payment to the taxpayer. Furthermore, under the terms of this program, since this is a required payment as a condition of participation in the program, it would likely be treated as an ordinary expense of sale to be allowed priority despite being reached by the federal tax lien. If a lender provides relocation assistance because the lender believes it makes good business sense and not because it is required under HAFA, the legal answer is the same. The IRS cannot require the taxpayer to the IRS the amount of the relocation expenses as a condition of discharge.

 

If you are a borrower with a VA home loan in Crestview, Navarre, Fort Walton Beach, Florida and surrounding towns, and are having trouble paying your mortgage, there is good news for you. The Veterans Administration recently announced a change to the VA Compromise Sale program.

What is a VA Compromise Sale?  Similar to a short sale, a VA Compromise Sale (also called VA Compromise Claim or Offer) is used when a VA borrower can no longer afford to make mortgage payments, must sell, and the mortgage balance is less than the what the property is worth.  If you qualify, you may sell your home at fair market value.  You will not be obligated to pay back the shortfall to your lender if got your loan after December 31, 1989.  (To use your full VA entitlement in the future to buy another home, you would have to pay the VA back its portion of the claim).

What is the new Veterans Administration announcement?  After you are approved for a VA Compromise Short Sale, you will now receive $1500 in relocation assistance at closing.  The Veterans Administration noted in its announcement that it wanted to be proactive in helping Veterans and competitive with the Home Affordable Modication Program.  They also noted that VA Compromise Sales leave homes in better condition than foreclosure, which is a cost-benefit to the loan servicer.

This new VA relocation assistance program ends on January 1, 2014.

If you are a VA borrower in Crestview, Navarre or Fort Walton Beach, Florida, and are trying to avoid foreclosure due to hardship, contact an experienced VA Compromise agent to help you.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call 1-877-487-9639) or 850-650-7883 ext 204 to list your home.

Email Wendy: itswendy@rulnickrealty.com

Crestview, Navarre Florida Short Sales & Pre Foreclosure Help.

Read Wendy's Crestview, Navarre Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.