I was served at 6:45 a.m. this morning with papers from my mortgage co. (one west). What do I do?

Asked by Nicole, Illinois Fri May 27, 2011

I am working with a short sale company. They are trying to get a BPO before putting it on the market. I have missed payments 2 payments. The papers are telling me to respond within 30 days and make a court appearance in July. Does anyone have any information?

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Matt Bukovy, Mortgage Broker Or Lender, Chicago, IL
Fri May 27, 2011
If your original loan was through IndyMac, and OneWest has your loan right now, I would say Start Packing. Because OneWest will not be very interested in doing a short sale. They will make MUCH MORE MONEY by foreclosing upon your property as soon as possible.

This is because they had a sweetheart deal with the FDIC, you can read all about it on the attached link.

2 votes
Harry Kunelis, Agent, Chicago, IL
Fri May 27, 2011
Hello Nicole,

1)has your short sale company explained to you the total number of days in the Illinois foreclosure process? it is about 210 days (7 months) from the Notice of Default? you have time (as long as you have the right team in place). Don't panic.

2)are they working with an investor and/or a processor? there is an important reason for this.

3)is your processor-agent-and/or investor using a bank loss mitigation calculator when negotiating your terms of release? this is HUGE! if they are not, they will have an impossible time communicating to the bank what the net recovery dollar is at short sale vs. the net recovery dollar at foreclosure.

4)banks will settle a first lien position for a specific percentage of the BPO value. a second lien position that is a HELOC loan will be a little bit more demanding on what they settle for. there is a very specific reason for this (i will not go into here). If your team has not explained to you why a second lien that is a HELOC is different from a true second mortgage - then you need to ask them. they should be able to answer this question within 2 seconds. if you do not have a second mortgage - then don't worry about this item.

4) don't listen to half of the non-sense that you are reading in the responses below. although Amy is "spot on" with the MARS ACT Disclosure which is federal law implemented to protect you.

5)there is no such thing as a foreclosure department and short sale department. all these matters are handled in a department called "loss mitigation." the bank's loss mitigation department only goal is to lessen the banks losses. this is done through a short sale. Decision makers at the bank know that they will net more money on a well handled short sale vs. foreclosure. YOU NEED A TEAM that works with a bank loss mitigation calculator. Ask your negotiator if they have access to this. it will make your deal making easier.

There are many more layers than this involved. Call me if you have further questions.

Kind regards,
Harry (investor/agent)
(312) 339-6758
1 vote
Cindy Wilson, Agent, Chicago, IL
Sat May 28, 2011
Nicole, I see from your many postings on Trulia that you bought a short sale yourself earlier this year. Surely you have an experienced real estate attorney by now. I think you need to seek professional counsel about your specific situation.
0 votes
Ricardo Mora…, Agent, Chicago, IL
Fri May 27, 2011
One West Bank which used to be IndyMac is one of the banks that as a certified short sale agent that I am, I can tell you that they are pro active in the short sale process. I makes sense to try to do a BPO before putting it on the market but unfortunately this bank doesn't work like that. You will be required to submit an offer along with the short sale package. I will highly suggest that you will seat with a HUD councilor or an attorney that specializes in Distressed Properties. Its always good to make an appearance at the court and explain to the judge what are your intentions and they will see that you are working in good faith. Don't worry, you still have few months to get it solved.

You can see more information about Short Sales by visiting,



My Best Regards,
0 votes
Amy Givoni, Agent, Boca Raton, FL
Fri May 27, 2011
If you want a second opinion on the Short Sale process, you should call:

Short Sale Department, LLC
Serving all 50 states

MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.

They're the best!
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri May 27, 2011
It may be in your best interest to consult with an attorney who specializes in real estate; if you cannot afford one, contact your local Legal Aid Society.
0 votes
Gerard Carney, Agent, Spring Hill, FL
Fri May 27, 2011
First for a short sale you need to be three payments or more behind, Your Mortgage Company seems not to be interested in doing a short sale with you so the company doing the short sale is not really doing one, I hope you are not paying them any kind of fees. You need to get an attorney, you need to have that attorney talk to the mortgage company and submit the proper paper work for a short sale to become a reality. You will need o show financial hardship! Hop to it and CYA
0 votes
Katie Logan, Agent, Chicago, IL
Fri May 27, 2011
Are you working with a real estate agent or broker currently or is the company you are talking about a company that deals with foreclosures? I am a broker and would be glad to talk to you if you are not working with another broker. My number is 630 262 7123. There are a couple of options, but you need to act with some urgency.
0 votes
Nick Pirro, Agent, Chicago, IL
Fri May 27, 2011
You need to call your bank. They need to give you the option of credit counceling before they foreclose. As far as how it will affect the short sale I don't know but the short sale company shoulld be able to provide a better answer.
0 votes
Raven Guzik, , Oak Park, IL
Fri May 27, 2011
My experiecne with short sales is, the foreclosure department and the short sale department do not communicate well. It is time for you to consult an experienced real estate attorney that specialize in distressed mortgages. Let them lay out all of your options and help to bridge the communication nightmare that ensures with this type of transaction.
Web Reference:  http://ravenguzik.com
0 votes
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