Countrywide Denying Short Sales
We had my house in escrow for 7 months! Buyer was willing to pay $1.967M for an oceanfront house here in Hawaii, which meant we would have to short sale the property.
After three separate and complete submitals of the file, and after two verbal approvals from the loss mitigator himself.....finally the game began.
Countrywide, continued to tell us that the file was "still in upper management review." This went on for 4.5 months!
End of the story, buyers walked, and actually I cannot blame them since the value of the house has dropped immensely in the 7 months they were in escrow.
I heard from a big mucky muck here that BofA told the loss mitigation department to "stall all short sale efforts". Their hope is that the government will bail them out. If they accept a short sale now, they lose money, if the govt. bails them out, its a wash.
I am looking for a good attorney to possibly take action if possible since they are forcing the house into foreclosure.
Yes, I know, it is ultimately up to the investor to take the deal. However it was verbally approved twice!
So upset, and wondering what a foreclosure could do to my other properties.
Thank you all,
Sam
What is the percentage off loss to CW? How much short are you asking them to take? This makes all the difference in the world.
Does CW also own the first?
Countrywide seems to be fast in giving confirmed approvals that are not carried through.
Especially when a non refundable application fee is involved.
Good Luck!
check-out non-arms lengths transactions
In strict circumstances with certain lenders it is possible to have the mortgage balance reduced to CMV along with an interest rate adjustment.
see the following:
http://en.wikipedia.org/wiki/Arm%27s_length_principle
All banks I have seen require you not to benefit from the short sale. Sell to yourself would be.
a loan modification, is what someone else mentioned.
Better read the fine print, the lender may reduce your principle but they can give you a 1099 at the end of the year for amount of principle reduction. Big tax headache.
Be careful!!!
I think Bush eliminated the 1099 penalty. House Bill 3648 (12/20/07) provides the 3 year tax relief window.
Full text at: http://www.whitehouse.gov/news/releases/2007/12/20071220-3.html
toobizee,
Here would be the guy to ask.
http://www.sharonherald.com/local/local_story_176214219.html
John $Cash$ Locke
[addsig]
If they destroy the property while they still the owner, while unethical, I do not believe they can be prosecuted. Even if in process of being forclosed.
I bought a house at Courthouse auction that was stripped.
Appliances gone, kitchen and bath cabinets gone, no toilet or tubs, A/C units gone, no hot water heater, no carpet, no interior doors, no well pump, the place was trashed with holes kicked in walls, etc.
Then the owners challenged the sale. We readily agreed at the Judicial hearing that the sale should be voided, and our purchase price should be returned to us.
The Judge agreed to overturn the sale....then we all had a good laugh when the Defendent asked for damages to restore the home to original, liveable condition.
We had photos, you see, of their self-inflicted damages.
[addsig]
Quote:
On 2008-07-06 18:42, JohnLocke wrote:
toobizee,
Here would be the guy to ask.
http://www.sharonherald.com/local/local_story_176214219.html
John $Cash$ Locke
Great result on this story - I wish more people got prosecuted for this! This activity happens all the time in our area.
I wonder if there is some sort of statute of limitations in which presecution must happen or not
look up the SOL for theft, fraud, bank fraud, etc.
Chirs
Is this first hand expierences and practices on your part -- or just thinking out loud.
Just Kidding. have seen too many of your post to even "think" you would go this route.
Actually second hand experience- saw the house, heard the explanation, lender bought it.
I do not consider foreclosure an option- business plan terminated. Just do whatever it takes to make that payment.
Chris