Hi Active Rain community. I've been negotiating short sales for a few years now and normally give advice but now I'm searching high and low for some advice on a short sale I am working.
The home has 2 lein holders and we have a buyer. It's a Fannie Mae loan through Wells Fargo. The 2nd (Citi) is asking for $9000 (the 2nd is $140,000K so as 2nd's go Citi is being very generous) which is more than is allowable under 'federal guidelines' so we asked for an exception which would require Fannie to give Citi an additonal $3000. Fannie will be getting 91% of what is owed them so you think it would be a no-brainer, right? NOPE! Fannie's bottom line is they get their 91% and Citi gets $6000 period. Wells Fargo who has become the forgotten stepchild agrees that Citi should get the additional $3000. The sellers are not financially able to make up the amount nor are the buyers. The trustee sale is in a few weeks.
We've hear over and over that the banks/lenders want to get out of the REO business but as this case shows that has not been my experience. Foreclosure will cost Fannie much more than $3000 but the federal guidelines are all they are concerned about.
What angers me the most is the plight of my clients. They attempted a loan modification which dragged on for over 18 months until they were told NO, to save their credit they attempted a short sale and now may be forced into foreclosure and possibly bankruptcy to clear the 2nd all because Fannie won't budge on $3000.
If you have any advice I'd love to hear it, actually I'm new to Active Rain and love all the advice that this community has to offer. Thanks for all you do!
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