After reading through these comments, I was also under the impression that you dont' need to be in default or behind on mortgage payments. So help me understand -- I'm in San Diego and have a short sale (IndyMac/OneWest). Hardship/short sale package submitted and after a little over a month, they just advised me they terminated it because the sellers have not missed their mortgage payments. They have a tenant in the property but the rent doesn't cover everything and the tenant is a month behind anyway so things are getting worse as we wait. So what's going on and is there anything I can do? The hardship is valid and the financials support it; the short sale package was very complete and it took them over a month to tell us this?? If that's their rule, why didn't they reject initially?
From my experience with IndyMac (One West) the seller's must have first tried for a loan modification and then after the loan modification is denied they can request a short sale. I don't know the specifics about being in default or behind on mortgage payments, but did the Sellers first try a loan mod?
In my last short sale with Indymac, my clients were behind on their payments and a loan modification was not approved after several month's work to try to get one; but before the short sale process could begin, my client had to send a letter to Indymac stating that they did not want a loan modification - so go figure. It's still a mess out there.
All you can do is to be the squeeky wheel and make phone calls, emails, twitter...anything you can do to get it to an upper level escalation.
Remind them that the seller should not be penalized for attempting to keep their credit intact. That if they truly have a hardship (that you can prove) it should be accepted.
Good Luck...be that squeeky wheel!!
Hi Renee, was this a jumbo loan? I personally had my loan with OneWest and they turned down our short sale because we weren't delinquent. My husband had lost his job and we had the right hardship reasons but they said NO. It was a jumbo loan and Duetche Bank was the investor. It took 30+ days to tell us. Took even longer to get the sale approved after we stopped making the payments. P.S. our 2nd was with Wells and we never missed a payment. They approved it, no problem.
Just wanted to update everyone about my IndyMac/OneWest short sale. First time around it was terminated because the loan was current and performing (it was not a Jumbo loan). Within 2 weeks we resubmitted because the payment had been missed by the tenant and now was showing up on their system as delinquent. Second time around, the approval was fast and smooth. I didn't advise the seller to miss a payment but they realized it on their own and the bank sure can't tell them that either, but it seems that "the investors will not approve a currently performing loan for short sale." By the way, IndyMac is VERY attentive and fast in processing short sale submittals to One West when the package is complete. Hooray -- this one is finally coming to a successful close!!