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.
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.
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.
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.
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.
Real Estate Consultant
RE/MAX Palos Verdes Realty