Victory Is Close But Will the 2nd Mortgage Ruin It?

Real Estate Broker/Owner with Heart Realty Group, Inc.. IL-471.002355

We all know that the short sale process can be a tedious and frustrating one for all involved.  From lost packages that are faxed several times to unreturned calls from overworked customer service agents, the list grows and varies from deal to deal.

The good news is that the 1st lien holder on my current short sale HAS APPROVED the 1st offer without a counter...could it be that the market facts that I sent them about the over 50% of closings in the last 6 months being short sales or foreclosures or perhaps that the listing had been on the market for over 1 year along with 5 others in the same subdivision or maybe that pesky mold in the basement?  Whatever the reason, it was a good business decision based on the facts.

But here comes the sorry tale of the 2nd lien.  First none of the various departments in the bank want to take responsibility for the offer because the loan was charged off.  Not loss mitigation, not recovery and even their legal team will not take the offer.  After a couple of weeks of being passed from one group to another and trying to escalate to a decision maker, no one wants to take responsibility.  With no collection activity on the charged off loan for over a year,  you would think they would be glad to take the money that was being handed to them without any work from any of the departments but no...everyone points to another department as being responsible.  They are not a major player so I can understand that they may not be set-up to take control of the current mess.  I imagine that most of the people I spoke with have jobs that pay $10 to $12 per hour and they have more work than ever but what happened to initiative, and problem solving?  I always enjoyed trying to solve a problem when I was in the corporate arena where you don't get paid anymore if you do a good or a mediocre job.  Anything to cut the boredom.  But I guess not everyone is like me. 

Without the 2nd's cooperation all the hard work done to have the 1st accept the offer is wasted.  I left a final message to the last person I escalated to with a few extra thousand that I was able to beg from the 1st.  Will it be enough to get them to take the deal and sign off?


The auction timeclock is ticking....I will keep my fingers crossed and pray to the Universe that common sense prevail...Yea, I said it...common sense..something that is sorely missing from the process.



Posted by

Evelyn Santiago

Managing Broker/Owner - 630-251-0059

Heart Realty Group, Inc.

We are Passionate About Real Estate!


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Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Yes, that victory can be bittersweet. When I have worked charged off loans, I usually call the collection company and settle with them. Nobody from the junior lien office can tell you who the collection company is??? The good news is that if you can find the collection company, you can probably get the approval letter in a few days--at least that has been my experience. Good luck!

Apr 04, 2009 09:54 AM #1
Omega Omega
Omega - Glendale, CA

Hi Evelyn, came across your post.  Very interesting - many forget about that darn 2nd but at least you've got it in your scope and I am sure things will work out.

Thanks for sharing.


Apr 04, 2009 09:57 AM #2
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

I hope things will work out for you. I wish you luck on the 2nd.

Apr 04, 2009 10:37 AM #3
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Evelyn Santiago, Managing Broker Heart Realty Group, Inc.

Passionate About Real Estate & Our Clients!
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