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Diary of a Short Sale - Part 2

By
Real Estate Agent with Gina McKinley Group LLC

I continued to work very hard to get the short sale approved without a the Promissory Note requirement.  A little reminder from Part 1 regarding the background situation, the home is in Gilbert, AZ and is protected under the Arizona anti-deficiency statues since it is the original purchase money mortgage.  The owners put down 10% and have a 90% mortgage with Wells Fargo.

After many attempts to get Radian to remove the Promissory Note removed, they would not budge.  I spoke with Vince the VP at Radian for Loss Mitigation.  A very rude individual that just yelled at me regarding the short sale.  He was quoting numbers off the top of his head regarding the loss payout they would have to make.  The actual loss on the sale is $71,000 and he kept saying they have to pay out $105,000.  They refused to review the seller's financial and ignored his job loss/ lay-off letter that was attached.  I have never been accosted on the phone that way before so that I could not review the actual numbers or get a work in edge wise.

Next we submitted the file to the Arizona Department of Financial Institutions, an agency that is set up to help homeowners and regulate Arizona banks.  They were very nice and told me that Wells Fargo is a national company but would try to assist.  After about two weeks, they sent back a letter indicating that they were also were unable to get the promissory note requirement removed.

Meantime the buyer was tired of waiting on the extended process and canceled the contract. However, we are still not giving up - we have put the home back on the market.  We are also starting to see signs that Wells Fargo or Radian is more willing to do a a short sale.  The original foreclosure auction date was 5/28/09 and they have moved it to June 30th without being asked.  They have also called the owners to see if they would consider a loan modification.  However, the owners are no longer interested in a modification since they are out of work and do not have any income to cover a mortgage payment.

We will see this to the end and we will be successful!  All my training as a Certified Distressed Property Expert will be used to help save the homeowners from foreclosure.  If you are facing a financial hardship and are not sure of what to do, please contact us regarding your options at 480-355-8645 or click here to view our web page.

 

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