Here’s the latest information on what Countrywide will do and what they won’t do.

I reported that there were various rumors going around that involved countrywide and short sale negotiations.

Some of those were true - others were not. ( here and here )

Then again, the rules are changing constantly. CFC has informed it’s Loss Mitigation Department as of late last week via an internal memo (I tried to get a hold of it without success) that they are indeed considering short sale negotiations on most all property.

Here’s what I’ve learned:

1. It depends on the Investor. Is the loan a Fannie, Freddie, ALT-A, Equity, etc.?

2. Needs a surplus percentage higher than 30%.

3. If not, must show a proper Financial Hardship

What constitutes a Financial Hardship with CFC?

• Natural Disaster
• Disability Mortgage Holder or Family Member
• Death of Mortgage Holder or Family Member
• Illness of Mortgage Holder or Family Member
• Property Damage (mold) Greater than 50% or more of the property
• Divorce
• and Other Financial Considerations

ME: “How do you calculate the surplus percentage?”

THEM: She didn’t know. The memo didn’t say. She said it was much like DTI. I was pushing my luck. I tried to get one more question answered…

ME: “Does the home have to occupied?”
(see Momma don’t let your Countrywide Houses go vacant)

THEM: “Not if they have a Financial Hardship”

So this tells me that if the present debt obligation is high - the income is low, according to their “surplus percentage” you don’t need to qualify under the Financial Hardship section.

However, if the income is high, the debts are low, you might need to knock off your significant other to qualify. At least according to their memo.

Remember all rules are meant to be broken. Never give up hope!