Ok, so here's the deal, I just got off the phone with Old Republic MI company and what they told me made my jaw hit the floor. I have a client who filed for bankruptcy and it was discharged. He filed a chapter 7. So, he now has his home listed as a short sale. Obviously, with the bankruptcy he can't afford the payments anymore. So, The first, B of A, has agreed to the short sale with a minimal counter. They didn't even counter price, which shocked me. Old Republic MI company holds the second.
So today Old Republic shared with me they want 10% of the value of the note. Oh by the way, my client owes $161,000 to the second. B of A, the first, is offering $3000. They tell me if they don't get the balance they are going to flat out deny the short sale. I told the representative on the other end of the phone that didn't make sense. They would rather turn down $3000 or risk getting nothing at all??? She said yes! I'm quoting here, "that's a risk we're willing to take." Seriously??? I'm scratching my head. I reminded her that this was a bankruptcy situation and if foreclosed on by B of A, they wouldn't see a dime. She said that she knew and restated her earlier position they were willing to take the risk.
Now it is my intention to hammer this as much as I can. I will go to the first and ask for 10%, which I know will present a challenge, however, miracles do happen. In the un-likely event B of A doesn't approve the 10% contribution, what do you suggest. I know there are a few of you out there who have experienced this.
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