Sara, the only way it would make sense for them to allow foreclosure is if the investor's insurance policy would pay the same amount, so they're hoping to making more off the short sale. Very frustrating, isn't it? They don't have a fiduciary obligation to the borrower, but to the investor, and of course, the servicer is hoping to make their share as well.
I'm having the same problem. Were you able to make any headway with the Executive Department?
I just got done working a file with SLS. You should have a specific negotiator assigned to your loan number. Typically when you call 800-268-9706 you will be prompted to enter the loan #. The call should then directed to that person. Ask who has been assigned to your account. Then just deal with them. Mine was a second under HAFA and they agreed to 6% of a 54K note. 6-10% is very typical for them. I find what will help sometimes with seconds is to let them know there is a closing scheduled within a couple weeks. They will usually be more motivated to settle with a carrot in front of them. I have the customer service reps document it for the file, then go back to the negotiator. Reality of closing may be longer, but closings can always get pushed out right?
So far the executive dept has not made much difference other than have the team lead call me back sooner than later. I already spoke to him before and he said that he wanted authorization from the borrower to speak with the 1st lender so that they could do a loss severity calculation. However, I just got an email from the 1st loan's negotiator saying that she will not talk to anyone. It's up to Fannie Mae and they've made their decision as to how much they will give the 2nd. I'm not sure how this will end up at this moment but I'm hoping that somehow we will be able to get somewhere with the 2nd before it's "too late". The 1st loan only gave us less than 30 days to close on their approval letter.
I thought I would ask another question while I'm at it--has anyone gotten Fannie Mae to give the borrower a deficiency waiver in writing? Per the 1st loan's negotiator they cannot do it and it's up to Fannie.
I am currently working with SLS on a second with IndyMac being the first. I am currently waiting for an answer from the first however I have been in contact with SLS and they have been very nice and cooperative. The second is for $53k and I have estimated a $16k payoff to them(10% of the sales price of $160k). They did ask me how I came up with that number but also said that I was probably close to what they would want. Should something happen soon I'll be sure to post that info. Good luck.