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Christina, Home Seller in Sacramento, CA

I'm in the process of a short sale. My realtor informed me per her conversation with the account manager of

Asked by Christina, Sacramento, CA Fri Dec 26, 2008

the work out dept of Countrywide the investor is saying we must come up with $12000 in order for the investor to approve it. Is this right or is this going to the realtor?

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Is this right or is this going to the realtor?

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I am so glad I am not your realtor.
0 votes Thank Flag Link Sun Dec 28, 2008
Hi Christina, not knowing the full extent of the loan status as in delinquent versus current and the type of loan you have as in Adjustable ARMs or Fixed ARMs, it is kinda challenging to put a work out scenario against it. However, it sounds to me like you are behind on your mortgage and Countrywide is offering you a repayment program rather than a modification. Typically in these situations, they want you to have some skin in the deal before they decide whether to modify your loan or not. THEY JUST WANT THEIR MONEY. I recommend you DON'T do it. Now that you are delinquent you have more options available to you. There is also a Federal mandate requiring all foreclosures to be halted until January 09, 2009 at this point, so you have some extra time on your side.

Call the HOPE number I provided earlier. Do not get any lawyers involved as it's going to cost you money.

I recently had a client from Michigan who was recomended by their Financial Advisor to consult with a lawyer who then told them to let the property go into foreclosure but before doing so however they had to hide her assets. Now six months later (last month to be exact) she contacted me requesting a loan modification and my advice to her was that I did not feel comfortable dealing with a home where Lawyers were involved in particularly when assets are being hidden away. Lawyers charge a lot of money to hide money. That's Fraud if someone asks me, but hey, they are Lawyers.
So, call HOPE, it' free....and they do provide good service.
0 votes Thank Flag Link Sun Dec 28, 2008
Please tell us your whole story so we can give you a better answer.
0 votes Thank Flag Link Sat Dec 27, 2008
I must agree with the Realtor from LaJolla. A short sale does nothing for you the seller. It will impact your credit negatively due to late payments. You can bring offer after offer to the lender and they hold you hostage.
They can decide at the end of months of negotiations that they will foreclose on you even though you have brought forth solid offers.

Do try the loan modification as he suggests. Lenders are being requested by the govt to try and resolve these loans. But, if you must get out, give them back the home. You have done your best and your credit will come back. FHA will allow loans after 3 years of a foreclosure.

Kathleen......a former short sale, then foreclosure victim who is rebuilding her credit and building wealth again.
0 votes Thank Flag Link Sat Dec 27, 2008
All Realtors adhere to the Code of Ethics. If your Realtor is telling you that this is Countrywide counter offer, I am sure that it is.

You do not have to accept this counter offer from Countrywide. You can always counter back. Something that bothers me tremendously about short sales is that you are doing the best you can to qualify for the short sale, by presenting all sort of documents the lender is requesting, and after all the effort and time that you are investing, your credit is going to be affected and you might be liable for tax owed on the amount forgiven by the Lender.

If it is better for you to stay in your home and not go through the short sale why don't you try a loan modification. Banks are eager to have people stay in their home and avoid the short sale or foreclosure process, so they would be very receptive to modifying your loan. Of course, this is only if you want to stay in your home.
0 votes Thank Flag Link Fri Dec 26, 2008
Please call me today. I am a Realtor, but more importantly I am a home owner who had to deal with Countrywide on a short sale since October of 2007!!! Yes, that long.
I had two investment properties of my own through Wells and Countrywide. I can give you details of their negotiation tactics. I would be more than happy to share my insights, knowledge and consolation with you.

Kathleen
408-398-5107
0 votes Thank Flag Link Fri Dec 26, 2008
Christina:

Short sales can be very trying transactions. Your sticking with it may save you from a foreclosure on your record, which will prevent you from purchasing another home using govt insured loans from 4 years.

That being said, I can tell you that the result of a short sale is negotiable and you and your agent need to be tenacious and counter offer any unacceptable offer by the lender. I have seen lenders go from $12K to $5K to release a lien. I have negotiated for a lender in second position to take $3,000 for a $186,000 loan (by the way, that was Countrywide in 2nd position) and I have represented the buyer where another agent could not get the lender to take less than $7,500 for a $60,000 loan. It seems a lot of the final result has to do with the negotiations between the lender and your agent, and how strongly you back them in these negotiations.

If this loan is a 2nd TD, then my suggestion to you is have your agent call back the negotiator and tell them that you are fully aware of the fact that when Countrywide is in 1st position, they will not pay more than $3,000 to the holder of the 2nd and you are working with another lender who has the same guidelines. This might help to get them to reduce their demand. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Fri Dec 26, 2008
I had a client in a similar situation with National City. It seemed like it took an act of congress to get them to put their offer in writng. Thay had wanted my client to convert 50% of a junior lien to a personal loan with a 15 year term. Once he saw what the offer and terms were to release the lien he proceeded to forclosure. I do not know if that was the best choice but that was his decision.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Fri Dec 26, 2008
This could be true , but usually there is a letter from the lender requiring this. You should call country wide and find out for sure. It could depend on the amount of the short sale and the position of the loan, i.e; is the loan a first loan or a second loan.
0 votes Thank Flag Link Fri Dec 26, 2008
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