Replies to This Discussion

Permalink Reply by Joseph C. Alfe on January 12, 2012 at 8:30pm

Do not assume that BOA HELOC needs 20%.  In case, prepare the buyers to possibly bring extra cash to close to buy out second.

Permalink Reply by Sharon Molnar on January 13, 2012 at 5:54am

Hi Clara,

 

I don't think you've really given us enough information to help. I am wondering why you only have until 1/20/12 to get a buyer and submit all paperwork. What are the details? Details, Details. It all boils down to details.

Permalink Reply by Clara Ling on January 13, 2012 at 12:47pm

The house is scheduled for a foreclosure auction on Feb 3. The 1st lender (PNC Mortage) said I must have an entire short sale package (including a executed P&S) by Jan 19, 2012 in order to stop the auction. I don't think I have enough time.

Permalink Reply by Joe Beauchamp on January 15, 2012 at 5:44pm

The servicer (PNC) goes by the investor's guidelines. FNMA is 6% max to 2nd, for instance.  Most of these people are "negotiatoing".  They are interested in either bringing in a lot of cash or getting the file off of their desk.  Honesty doesn't have to enter the picture.

If the BOA HELLOC is in the debt collector's hands, good luck.  Those people usually believe that if they stand hard for huge payoff, even after all the deals that go to foreclosure because they stand hard, the average $$ is better than if they work a deal.  That is a tough attitude to deal with.

BOA runs hot and cold - occasionally you get a good negotiator, usually a mediocre paper pusher, sometimes someone who should just be taken out and shot for the goodness of humanity.  Usually, the best approach is to discuss the issues and find what kind you have.  Urgency is something that BOA doesn't understand - you'll be very lucky to get that across.

You probably need to sit down and do hard negotiating.  I usually understand where the walls are after some back and forth - what their limit is.  If the negotiator is good, he will actually tell you what his bottom line is.  But, I haven't run into many of these at BOA in the last year - I think they've all gone into some easier way to make a living??

PNC is very unlikely to help.  If they foreclose, they get to continue collecting fees from the investor for "managing" the property.  They have no interest in cutting that short, especially pay extra to a 2nd to cut that short - and, again, the limit is set by the investor, not PNC.  I use that factor when I am talking to a 2nd.  Many of mine are FNMA and I explain to the 2nd that it is FNMA and their limit is 6% and that they clearly know this because, no doubt, FNMA is one of their primary investor/bosses so they know this guideline and I cannot get more.

Good luck.

Permalink Reply by Ben Benita on January 15, 2012 at 9:21pm

 

As teh risk of being a smart _______, what is the job title of the persons you are dealing when you call in?

 

ANSWER - "Negotiators"

 

by definition, they get paid to negotiate" and get as much money as possible for the Inevstor on teh note.

 

To overcome your scenario (and 90% of short sale issues), you need to:

 

1)  Escalate your file to the higher ups (team leads, senior VP's, etc.)

and

2)  Follow teh cash - contact the "Investor" on the note....they are the entity that stands to actually lose the money should this go to foreclosure

 

I forget which one off teh top of my head, BUT, I no know at least one of teh servicing arrangemetns actually REQUIRES THE SERVICER TO COUNETR ANY OFFER at least 3% higher than what is first sent in.....

 

know how to play the short sale negotiations game and you will do just fine!!!

 

Best of luck.....