Watch out if you are working a Countrywide short sale with PMI! There is some funny stuff going on... I've been working a Countrywide short since October 2007, with a Countrywide second on it. There have been the usual delays, appraisals, counteroffers, request for seller's medical receipts, then a denial in early December. About a week later, the buyer re-wrote his offer to the terms Countrywide wanted. Yesterday, after more delays with "re-opening the file", ordering new appraisals, etc. I was informed by the negotiator that the second mortgage had been "released" to the AIG United Guaranty, the PMI company. She said Countrywide would not give an approval until they knew what the PMI company wanted, as their policy has changed and they no longer negotiate with PMI companies. She said that was now my job, and gave me the contact information, with a warning that PMI would be very difficult to get good terms from. I asked her when the loan was sold. She "fumbled" through papers and said she could not tell.
I called AIG and they were right on top of it. They said the loan was bought on NOVEMBER 5- a few weeks after the short sale offer was submitted! The AIG rep did not seem pleased there had been a short sale in the works. He said they should have been told when they bought the loan, and that "Countrywide dropped the ball".
I have two big problems with this. One, is that Countrywide did not disclose pertinent and known information to me. I worked over two months on their good word for approval, when they tell me it will all be moot depending on what AIG says. Why didn't they tell me this on November 5? Second, they did not disclose to the PMI company about the status of the loan. I have spoken to a local attorney who said there seem to be RESPA violations going on. He said there is a Florida doctrine "Holder in due course" which requires notification to a loan purchaser about anything affecting the loan prior to sale. He said when that is the case, the second mortgage purchaser has legal defenses which allow them to hold the loan free and clear of all defenses a borrower may have against the original note holder. He and my seller will go forward pursuing this if I run into a stone wall with these new negotiations. I asked the Countrywide loss mitigation department if I could switch negotiators, as it is quite apparent I have been misled. They said no.
BLOG UPDATE: There are now multiple incidents where Countywide has sold a second, or "serviced released" a note, even months earlier, and not disclosing this information upfront during the short sale negotiation process. I will write about this in another post.
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Crestview, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy Rulnick, Broker and Realtor, has been selling real estate for 20 years. She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she negotiates successfully to her clients' advantage. She is supported by a team of top buyer specialists. She lists and sells homes, condos and townhomes.
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This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information