The servicer is Navy federal Credit Union and I got as far with negotiator as to the borrower agreeing to
signing a promissory note ,all taking the usual 9 months or so to get to this stage
The hardship involved the borrower moving to Orlando from Ft Myers ,about 200 miles, in order to get a better job and improve one of the borrowers prospects.
The borrowers have kept paying their mortgage ,in the main due to one of the borrowers work requiring good credit ,.
I showed Navy FCU the lease of the Orlando property ,but Fannie turned down the short sale due to "borrower not being in imminent danger of default "
I have asked the negotiator what the next step entails and he was unable to give me any advice .
Does the borrower appeal to Fannie or is there a vehicle for me to do so on their behalf ,and if so what my basis for doing so ?
Donal J Dowling
I would send them a copy of the new Fannie Mae guidelines that became effective Nov 1st. here is the link https://www.fanniemae.com/content/announcement/svc1219.pdf
job transfer is a legitimate exception long before the November 1st directive - I just had one earlier this year and another at the end of last year. Look in the guidelines, the exception is there.
We KEEP running into this....where WE have to show the employees at Fannie THEIR OWN GUIDELINES!!!!
Fun stuff.....keep pushing, you will get it through.
If your Sellers elect to miss payments, be CERTAIN to tell Navy Federal
"thank you for letting me tell my Sellers to just live in the home for free for a few months before we do the short sale...."
Banks LOVE LOVE LOVE that line!!!!
Without knowing all of the details regarding why the seller moved I can make a few suggestions based on the new FHFA servicing guidelines issued to the GSE's: http://www.fhfa.gov/webfiles/24211/ShortSalesPRFactFinal.pdf
If the seller moved due to employment reasons they may qualify under that inclusion.
Since the new guidelines no longer require the seller to be behind on their payments all they need to do is show that their expenses exceed their income to prove that they are potentially in imminent default.
Enable servicers to quickly and easily qualify certain borrowers who are current on their mortgages for short sales: Common reasons for borrower hardship are death, divorce, disability, and distant employment transfer or relocation.
With the program changes, servicers will be permitted to process short sales for borrowers with these hardships without any additional approval from Fannie Mae or Freddie Mac, even if the borrowers are current on their mortgage payments. Borrowers will now qualify for a short sale if they need to relocate more than 50 miles from their home for a job transfer or new employment opportunity.
You can also go directly to FNMA through there transaction desk portal an file an appeal citing your reasons. It has often been my experience that the negotiator you are dealing with may be acting on bad information or trying to manipulate the truth to get a better outcome. Let them know that unless it has been resolved you will be appealing directly to FNMA, FHFA and possibly the OCC if need be if you don't get a reasonable outcome.
Bottom line is let them know that you know the rules that the need to comply with!
Hope this helps
Thank you so much for this terrific information
What does OCC mean ?
Can the appeal be made online or does a formal submission need to be made
I cannot thank you enough .
The negotiator has never, ever responded over the last 10 months to any of my 30 or so emails .
After receiving your email I advised him that I was going to appeal the decision to the CEO of Navy FCU
and the office of the OCC....The reply was instantaneous ...but not from him ...I received an email from a supervisor requested updated docs so as she could make an appeal to the Investor .
Once again ,my hearfelt gratitude is extended to you
You are very welcome, I'm glad everything worked out so well.
Sometimes carrying a big stick helps.
I had to do this with a Nationstar file once when they insisted that the investor declined my approval on an unfounded basis. I sent them the same message and had an approval in days. Sometimes it just helps to know what their mandate is and just holding them accountable.
BTW- while you have their attention see if you can, try and get them to elaborate on their definition of "imminent default"?
It sounds to me like they left this open to interpretation along with their qualification based on the seller moving more than 50 miles due to employment reasons. Does this mean that the employee was transferred by their current employer or can it simply mean that they needed to move to find better opportunity?
BTW- in regards to the OCC and what they do you can visit this http://www.scribd.com/doc/119166745/Issa-Cummings-Letter
I actually just ran into this AGAIN today. This time I was told that even though Fannie and Freddie do agree to REVIEW the files if the borrower is current that unless they have one of the "eligible" hardships: death of borrower or co-borrower, divorce, disability, or relocation for a job; the file will be declined. My situation involved a young lady who was single when she purchased her 400 sf condo and is now married with a baby living in 400 square feet. Not an eligible hardship. They told me to tell her to fall behind or the deal wouldn't be approved. They wanted the full amount of $99K even though the BPO came in at $34K.
OCC - Office Of The COmptroller Of The Currency - 800-613-6743
They over see some of the Servicers and are an EXCELLENT source for complaints, particularly if you get one of the bank higher ups involved (get your file escalated).
Lower level persons at the banks have NO CLUE who the OCC, the big boys get VERY attentive when you drop that you or your client is considering filing a complaint with the OCC
Not all Servicers are governed by the OCC, others are under:
OTS - Office Of Thrift Supervision - 800-842-6929
Best of luck!!!!
Contact me directly at Ben@ShortSaleShop.net if you want to talk in detail!!!