30-60 Day Fannie/Freddie Approvals? Second liens STILL killing deals?
1) As you probably heard a couple of months ago, because of pressure from the FHFA that oversees Fannie and Freddie, both entities announced that they want servicers to reply to short sale offers within 30 days (well… 30-60 days) starting today, June 15, 2012. This response can be an approval or denial or counter offer.
My response to this is, “doesn’t HAFA already require this and we haven’t seen that happening consistently with HAFA short sales?” …and I also asked myself, “self, what will change if there are no “teeth” (consequences) for non compliance?”.
Maybe it’s just me, but I will remain skeptical as I’ve heard about a lot of “programs” and “changes” over the years that have mostly had little, if any impact on the outcome. I still believe that ultimately if we want short sales to close faster, it will happen from what we do, not what we HOPE that the banks/servicers/investors/government will do.
2) I am helping a reporter with a short sale story… but he needs more stories.
That’s where you come in. What’s with these crazy second lien servicers hoping for 30%, 40% and 50% of the second lien balance?
Of course we’ve seen it for years, but some are starting to stand out as “consistently crazy”. We are hearing more and more agents complain about default servicers such as Real Time Resolution and Green Tree and even continued frustrations with second lien servicers such as USAA, Navy Federal, US Bank and PNC to name a few.
PLEASE SHARE YOUR STORIES BELOW… or send us an email with your horror stories of how a second lien servicer’s demands, “killed” a short sale and caused the home to foreclose.
If your story is what the reporter is looking for, we’ll have him contact you to get the full story.
THANKS FOR SHARING! By making their tactics more public, these entities are scrutinized and forced to change their unfair practices which cause more problems for homeowners and for their investors who they should be working to mitigate their loss.
Trent, just got off the phone with PRS chase collections, to long of a story to type out
but its been a 1.5 years, and we are almost closing. Next week
Negotiator was not in to issue an extension, so Joe Davis came on the line, same guy I had
talked to about 30 minutes earlier but then he was Bill Gregory.
NOW they even change their names to switch off to other people…………….
thats getting a little ridiculous. will you be discussing the lien services that are
?/:..# with the associations? and have no interest in settling accounts for the homeowners because they keep getting paid, if they settle they don’t get paid any more…….
that is a very sad situation
Jerry Barrus
Heres a good one…Tri Counties bank out of Chico Ca. says, “give us 30 grand to pay down the balance and we’ll think about it”. Here’s the reality….we actually have 31,500 to pay them but they will not accept it through escrow, they want it to pay the balance down then they will think about doing a s.s.! What the what…they’re crazy…. I emailed Kamala Harris’s office they referred me to the FDIC the FDIC said they can not help. I sent an email to the entire city of Chico only to have all their emails pop back several days later…Really. I am looking for the share holders to alert them. the lien is $100k. $0.30 cents on the dollar is darn good but they are greedy. Us agents must not aquisece to these greedy banks that have plenty and then some. We must unite and stand our ground.
I agree Patty, it’s time agents united stand their ground.
-Trent
My take is probably an unpopular view but who can blame the subordinate lien holder(s) to stall on getting pennies on the dollar. Sometimes the loan is so high on these subordinate loans ($50K to $100K that just out of principal, I would probably hold out even if it meant zero to me, as the lien holder, in the end.
I have had Wells Fargo kill three deals all in the last month…
1st lien and 2nd lien both held by Wells Fargo and no waiver of deficiency on either. WA is a non recourse state for non judicial foreclosures….what are they thinking?
Have had Wells Fargo seconds all requiring seller to negotiate settlement After closing.