CW Short Sale Listing

[Mary Salzer]

I am of the opinion what they don't know they make up, and then the poor borrower is beside themselves as the information is so skewed and wrong....

Good, glad you got that part of it out of the way, but you still have the right to have your own insurer and it is a regulated insurance product due to FEMA....

Way to go!!!!!!!!

[4Macias]

Thank you Poppy for your help on this also.

I was hoping that you could read my original thread when I initially joined LoanSafe and see what your ideas are on the case. Thank you.

The thread is at:

http://www.loansafe.org/forum/showthread.php?t=491

Re: CW Loan mod--- no documented income?

[Mary Salzer]

EEEEkKKKK, filing 2008 taxes after no documented income.....attorney time. Also the P & L should be done as a compiled, not audited by a CPA or licensed Bookkeeper.

Spanish speaking have you consulted an attorney about the rules regarding documents at closing in the language of the borrower issue? Did you get a doc review...that APR is high and I am curious if this was HOEPA and predatory due to the borrower's language issues and the method of deriving income at the time of loan origination.

[Mary Salzer]

Posted to the thread with on the fly observations, I feel for this family, I suspect that they were put in a predatory situation by issues outside of their control. However, the proof of that is difficult and arduous to prove and costly to boot.

[mreedlaw]

Glad to hear that a refund for the flood insurance is forthcoming. Was their escrow analysis for just the flood insurance or the property taxes and hazard as well?

[4Macias]

it was for flood only. The taxes and hazard are paid directly by homeowner, it was just the flood that they started escrow for about half a year ago.

[Mary Salzer]

The reason that Flood Insurance is escrowed is that it is mandated by FEMA and our helpful friends at the Federal Level.....became so on all loans (every single one) after the floods in the Mid West in the 90's.

[Moe]

I know I am a bit late coming to the party here, but I feel a "QWR" is in order here. I mean they can say whatever thy like and reduce it to whatever they like. My thoughts are "prove" these fees and reductions are "exactly" what I am entitled to.

Just my 2 cents.


Section 10: Limits on escrow accounts

Section 10 of RESPA sets limits on the amounts that a lender may require a borrower to put into an escrow account for purposes of paying taxes, hazard insurance and other charges related to the property. RESPA does not require lenders to impose an escrow account on borrowers; however, certain government loan programs or lenders may require escrow accounts as a condition of the loan.

During the course of the loan, RESPA prohibits a lender from charging excessive amounts for the escrow account. Each month the lender may require a borrower to pay into the escrow account no more than 1/12 of the total of all disbursements payable during the year, plus an amount necessary to pay for any shortage in the account. In addition, the lender may require a cushion, not to exceed an amount equal to 1/6 of the total disbursements for the year.

The lender must perform an escrow account analysis once during the year and notify borrowers of any shortage. Any excess of $50 or more must be returned to the borrower.

Consumer Tips: Do's From HUD

• Do ask lenders what fees they charge, as well as the interest rate and points, when shopping for a loan.
• Do ask the builder whether you are required to use a certain provider in order to get a special concession.
• Do compare the costs of different settlement service providers before agreeing to use one to whom you were referred.
• Do ask to see the HUD-1 Settlement Statement a day before settlement, and compare the charges with those listed on the Good Faith Estimate.
• Do question the lender and settlement agent about any charges you do not understand.
• Keep making your mortgage payment on time, even if you have sent a complaint to your lender.
• Do forward any tax or insurance bills you receive, immediately to your lender. (If the lender is supposed to pay the bill).
• Do check your annual escrow account statement for mistakes.
• Do make a "qualified written request" when asking your lender for information or making a complaint.
• Do read the FAQs about Escrow Accounts carefully before filing an escrow complaint with a banking or government regulator.

12 usc section 2605 servicing of mortgage loans and administration of escrow accounts
Source HUD
(e) Duty of loan servicer to respond to borrower inquiries
(1) Notice of receipt of inquiry
(A) In general
If any servicer of a federally related mortgage loan
receives a qualified written request from the borrower (or an
agent of the borrower) for information relating to the servicing
of such loan, the servicer shall provide a written response
acknowledging receipt of the correspondence within 20 days
(excluding legal public holidays, Saturdays, and Sundays) unless
the action requested is taken within such period.

(B) Qualified written request
For purposes of this subsection, a qualified written request
shall be a written correspondence, other than notice on a
payment coupon or other payment medium supplied by the servicer,
that--

(i) includes, or otherwise enables the servicer to
identify, the name and account of the borrower; and
(ii) includes a statement of the reasons for the belief
of the borrower, to the extent applicable, that the account
is in error or provides sufficient detail to the servicer
regarding other information sought by the borrower.

(2) Action with respect to inquiry
Not later than 60 days (excluding legal public holidays,
Saturdays, and Sundays) after the receipt from any borrower of any
qualified written request under paragraph (1) and, if applicable,
before taking any action with respect to the inquiry of the
borrower, the servicer shall--

(A) make appropriate corrections in the account of the
borrower, including the crediting of any late charges or
penalties, and transmit to the borrower a written notification
of such correction (which shall include the name and telephone
number of a representative of the servicer who can provide
assistance to the borrower);
(B) after conducting an investigation, provide the borrower
with a written explanation or clarification that includes--
(i) to the extent applicable, a statement of the reasons
for which the servicer believes the account of the borrower
is correct as determined by the servicer; and
(ii) the name and telephone number of an individual
employed by, or the office or department of, the servicer
who can provide assistance to the borrower; or

[4Macias]

We just put the house up for a short sale....it was hard to find a realtor willing to do short sale with Countrywide....the house is in Lancaster, California.

The listing price is at market value of $100k and we owe $198k on the house. Is it almost a given that countrywide will reject the offer?

Also, any suggestions of how to make the short sale a success will be appreciated. Thanks,

[Cat Damiano]

Unfortunately there isn't anything you can do to pursuade a lender to take a Short Sale offer............it is up to the investor.........and hopefully your agent is familiar with and has done Short Sales with CW in the past.......because negotiating with them is extremely difficult and does take some time............