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Will the foreclosure procees continue?
  #1 (permalink)   IP: 65.29.97.95
Old 06-29-2008, 02:00 PM
MrWright MrWright is offline
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Will the foreclosure procees continue?

To make a long story short we have missed a few payments for various reasons and it isn’t looking promising going forward. We have received a letter from CW saying if we don’t cure our default balance by July 16th the foreclosure proceedings will be imitated. Prior to this letter we listed our house for sale with an agent that has short sale experience and we received an offer within a few weeks. The offer and the short sale package were submitted last week. My only concern is how this works when I’m still missing payments come July 16? Will my account get put on hold with CW so I don’t slip into foreclosure while I get assigned to a loss mitiagator\ having the short sale approved? Do I need to contact the lender even though I gave consent for my agent to talk with them? I’m just not sure how all that works so any help would be greatly appreciated.
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Re: Advice on Short Sale process
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Old 06-29-2008, 03:49 PM
schwefls schwefls is offline
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Re: Advice on Short Sale process

Hi MrWright welcome to our forum. I wanted to stop in say hello and assure you...you are not alone. Shortly someone will be reaching out to you with some sound advice/suggestions. In the interim please hang in there and know that we are here for you.
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Re: Advice on Short Sale process
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Old 06-29-2008, 04:03 PM
faith faith is offline
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Re: Advice on Short Sale process

Dear Mr.Wright,
Here's what the website of Countrywide Home Loans says about Short Sale:

Property Disposition Options:
If you are not interested or are unable to retain homeownership, the following programs may be available:
Short Sale*
You may be able to sell your property at its fair market value even if the sale's proceeds are less than what is owed on your loan.
View the Details


How the process works

You may be able to sell your property at fair market value even if the sale's proceeds are less than what you owe on your loan**. This option provides you with an opportunity to sell your home quickly, while attempting to preserve your credit rating. At the close of escrow, if the short sale is approved, the proceeds are wired to us.
Documents that are required
Updated financial information for all parties on the loan
Completed short sale documents (i.e. Purchase Agreement, HUD Documents etc.)
Verification of income
Interior appraisal

Estimated Timing
The short sale process typically takes 60 to 120 days to complete, but may take longer.
The primary stages are:
Determination of value - 2 weeks
Negotiation and approval of offer - 30-120 days
Transaction approval - 30-120 days
Escrow closing - 30 to 45 days

* All plan options may require investor/insurer approval. All time durations listed are estimates only.
** This option may have tax implications. Please check with a financial or tax advisor.


You need to give a Letter of Authorization to Countrywide Home Loans stating you have authorized your agent to talk to Countrywide Home Loans:

Here's the sample:

Your address


WORKOUT DEPARTMENT
Countrywide Home Loans
Countrywide Bank
450 American St
Simi Valley, CA 93065
MS SV – 34

To: Workout Department:

We are writing this letter to inform you that we are giving Countrywide permission to talk with our Real Estate Agent to discuss about our loan regarding short sale.

Property Address: ___________________

Loan Reference Number: 1st Mortgage -#
2nd Mortgage -#
Name: Your name and spouse, if any
Date Property Listed: February 2, 2008
Listing Expires: June 4, 2008
Listing Price: *$290,000(Subject to Countrywide’s Approval)

Agent's Name: ______________________
Contact Information: Office - _______________Cell:_______________
Fax number: ____________________
Location: __________________________

Today’s Date: February 2, 2008


Sincerely,



Your name

__________________________________________________ _____________

Once you have given the package and the authorization letter to Countrywide Home Loans, you need to email Countrywide Home Loans Corporate 0fficials and Negotiator and the 0ffice of the President and call, email, fax, send mail to CW, follow up on them. This is the fastest way to be assigned a Negotiator. CW is not interested in foreclosing your home, this is one of their tactics for you to make payment. In order that CW will accept your offer, you have to be at least 3 months behind in payment. You have to write them a hardship letter and explained why you can no longer afford to make payments. I have missed payments now for 8 months and it took CW 120 days to approve the short sale. We are waiting for the escrow closed by July 10, 2008. I wanted them to foreclose the house but they won't do it since I've put my house in the market. Make sure you follow up on them, if you will search this site Cat has given a list of CW officials and the names and the trick how to email CW. The trick is first name underscore last name @countrywide.com(first_last@countrywide.com).

I am sure Cat of LoanSafe has the correct and up to date lists of names of CW 0fficials and just wait for her to respond.

Good luck, take care and God bless.

Sincerely,
Faith

Last edited by faith; 06-29-2008 at 04:07 PM.
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Re: Advice on Short Sale process
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Old 06-29-2008, 04:50 PM
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Cat Damiano Cat Damiano is offline
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Re: Advice on Short Sale process

Hi MrWright,

Welcome to the forum and thank you for joining...............

In order to get someone to process your Short Sale package sooner..........put together an email stating that you need Short Sale approval on an offer that you have and send it to each of the email addresses below.............
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The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.
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Re: Advice on Short Sale process
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Old 06-29-2008, 06:15 PM
MrWright MrWright is offline
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Re: Advice on Short Sale process

Thanks for the quick replys everyone... So even though my agent has submitted the package to CW you suggest I email each contact separtly also? Im sure I cant email them everything since I imagine some hardcopy stuff requires fax. And in this email to each contact how should I address the email?


On a side question. Anyone know much about the Mortgage Forgiveness Debt Relief Act of 2007-2009? Would it apply in this case I.E shortsale? And what if for some reason my home went into forclosure would that Mortgage Forgiveness Debt Relief Act apply for that also? Bottom line - if I walk away from a mortgage, am I liable for the amount left over after the lender sells the property?
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Re: Advice on Short Sale process
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Old 06-29-2008, 06:28 PM
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Re: Advice on Short Sale process

In the email you are only using it to try to get an approval on the contract that you have already submitted........you only have to mention that in the email along with your loan number and the date that your agent submitted the package............but you wouldn't have to resubmit the whole package.....it is just a way to get into the Office of the President for the approval of the Short Sale and bypass the long waiting time so you don't lose the buyer......

As far as the debt relief goes..........
That would depend on what state you are in.......

Mortgage Forgiveness Debt Relief Act
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The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.
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Re: Advice on Short Sale process
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Old 06-29-2008, 06:46 PM
faith faith is offline
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Re: Advice on Short Sale process

Mr. Wright,
Once Countrywide Home Loans accepts the short sale, your negotiator will send or fax your agent a letter which serves as Countrywide Home Loans's demand for payment and advises you that Countrywide Home Loans Home Loans and its investors and/or insurers have agreed to accept a short payoff regarding your property. They will give you conditions of the short sale like when the closing date is going to be 30 days from the approval, in my case my buyers lender requested additional 15 days due to the holiday. They specified the buyer's name only and no substitution of any buyer unless the ones CW approved of. They specify the amt of the sales price and how much the proceeds to CW is going to be. CW pays your agent's commission and will only pay 5% commission and how much the exact amount of the agents commission would be. There is no costs to the seller and depending on the buyer's agreement with CW, CW pays also the buyer commission. In my case the sale price is $290k, the buyer offered $298k with the condition that the $8k will go to the buyer's closing costs. The property is being sold as AS IS condition, they will not order a termite inspection and no repair. My house is 2.5 years old and has $74k upgrades, the buyer didn't want to pay for any home inspection. CW has about 17 conditions in their letters, but the most important one is when they put in writing in item 12 CW or its investors will not pursue a deficiency judgment if the shortsale closes on the referenced loan. If the shortsale does not close, then the referenced loan secured by the Note and Security instrument shall remain in force and effect and CW will pursue all remedies under the Note and Security Instrument. They also have a wiring instructions where and when to wire the money to their bank of their choice, which is Bank of America.

I think you should email all the ones Cat has given you and I tell you why. I did the same thing that you did, mail the authorization letter and short sale package in 0ctober of 2007 without having a buyer first and CW denied our request for short sale. Duing the last two months of my first listing I decided to cancel the listing I have with my first agent because of no buyer coming into my house but he threatened to sue me because of exclusive rights. I talk to him and we asked him to bring buyers, by the time he was bringing 6 buyers they all backed out citing long process with CW.

I did not want CW foreclose on my house, so I hired another agent and this one is an expert with Short Sale and in 1 week he brought 3 offers, $280k, $298k, $290, the fourth one is $240 which we have rejected. My agent faxed everything to CW but no actions, no phone nothing. I thanked God for this site, Cat, Moe, Andrew and Professor Shays shared their endless time and effort, their knowledge and expertise how to deal with CW. They taught us how to email, fax, call the one who is the loudest, gets attention. I have emailed Lisa Riordan and other executives and employees from the list that Cat gave you. The next day, I have received an email from Lisa Riordan, she's one of the investors and Executive of CW and told me that someone will call me the next day. True to her word, Kacie Miller of CW called and assigned me a Negotiator. This Negotiator called me and asked for my agent's phone # and name but he was not calling or not telling us what is the next step. I have followed Cat and Moe's Andrew and Professor Shays advice to keep emailing CW officials, Everytime I need to ask my negotiator something I sent copy to the CW officials and my negotiator responded and call my agent and email me, until he ordered an appraisal. Just keep begging CW, knocking on their hearts, requesting, telling them that it's to their advantage to accept the short sale instead of foreclose, I told them if they foreclose they will lose a lot of money and they can't have a buyer to offer like the ones I have had. My first buyer backed out, but my agent kept showing my house to all the agents he knew and kept bringing buyers. I thanked God I have 2nd and 3rd buyer left waiting and here you go the short sale was approved, thanked God for that and just waiting for escrow to close on July 10, 2008.

If you foreclose, Fannie Mae and other lenders will make it hard for you and those who foreclose their homes to buy another house until 5 years maybe more. Your credit score will take a hit, 300 points or more, says your credit score is 800 less 300 that will be 500.

If your short sale is approved, closed, you only have to wait 2 years before you can buy another house and the damage to your credit score is only 150-200 down in points, if your credit score is 800 less 150 that will be 650 and it will be easy for you to bring it up again.

I hope what Cat and the rest of us here is making sense to you. We are here to help because help was given to us first, through God's mercy and grace He leads us all to this site and gave us wonderful, dedicated, professional people I don't ever encountered and have not seen their faces, but the sound of their names are beautiful to me, Cat, Moe, Andrew, Professor Shays, someday we will face God and I will hear God telling all of them, "Well done, good and my faithful servant." To God be the glory.

God loves you and God bless you.

Sincerely,
Faith

Last edited by faith; 06-29-2008 at 06:50 PM.
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Re: Advice on Short Sale process
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Old 06-29-2008, 06:59 PM
MrWright MrWright is offline
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Re: Advice on Short Sale process

Wow! Great thread Faith.. For someone to go that in depth is truely someone who cares and I truely appricatie it. I'm going to draft up a sample email and possible post it here to get feed back before I send it off. Again thanks for the support.
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Re: Advice on Short Sale process
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Old 06-29-2008, 10:56 PM
MostSerene1 MostSerene1 is offline
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Re: Advice on Short Sale process

Hi Everyone,

I've just read the mortgage forgiveness act information Cat mentioned (Mortgage Forgiveness Debt Relief Act ).
I cannot see for the life of me that this is state specific. Please help us all understand which states this would (or would not) apply to.
I will be mailing off my request to Countrywide to ask for a deed-in-lieu of foreclosure because my buyer's funding fell thru. I was wondering the same thing............can CW come after me for the remaining amount of what I owe on the house plus penalties, interest, lawyers fees, etc.

Many Thanks
Serene
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Re: Advice on Short Sale process
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Old 06-29-2008, 11:20 PM
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Re: Advice on Short Sale process

Serene,

My post said............

As far as the debt relief goes..........
That would depend on what state you are in.......


not that the Dept Relief Act is state specific........that is not...........

the member asked the question if they walked away from the home would they be liable for the left over amount when the lender sells the property..........and that is where the reply that it would depend on which state you were in because some states don't have deficiency judgements....while others do........the Dept Relief Act is for tax purposes so you are not taxed on the difference in a short sale............however, it does not protect from deficiency judgements in the states where they are allowed........

In the state of Washington deficiency judgements are allowed.................as to whether or not they will come after you for the difference, that would be up to the investor.............


Washington Foreclosure Law
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Re: Advice on Short Sale process
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Old 06-29-2008, 11:53 PM
MostSerene1 MostSerene1 is offline
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Re: Advice on Short Sale process

e-gads. doesn't look too good for me, then. I'm probably toast - finacially speaking.

Thanks so much for the clarification. I am grateful.

Serene
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Re: Advice on Short Sale process
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Old 06-30-2008, 06:28 AM
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Re: Advice on Short Sale process

Here is the letter i sent to Countrywide Home Loans and the email address above. Is there other email address I should send to? Any thing thats in bold font is where i took out personal info below.


Subject: Short Sale approval on an offer for xxxx street, city state zip Loan####
Borrower: Name here

Address of Property: here


1st Mortgage: Countrywide Home Loans account:xxxx





To whom it may concern:



I just wanted to verify Countrywide has received my fax (letter, bank statements, pay stubs, offer) and to see if our case has been assigned to anyone yet. We are in real financial hardship and would greatly appreciate some direction and help. I’m not sure how long the buyer will wait around so if there is anything I need to do to speed things along please let me know.



I purchased my home at address here in 1999. At that time I was employed by company here and business was very good. My salary and the possibility of a promotion and raise made me sure that I could easily support my mortgage. Unfortunately, a downturn in the market caused my company to outsource my department to company here. And now with the economy the way it is and especially in the blank field it’s even tougher. Blank company has since reduce its workforce by either layoffs or sending a lot of the jobs we do overseas to India. Most of my peers have been laid off and I see myself in line very soon to get laid off. Those of us who were fortunate to survive some of the latest rounds of cuts we were given the option to quit or take a 15% salary reduction. Since taking the 15% reduction in pay with over time being very scarce it’s hard to maintain all our bills on time. My wife has since took on a part time job but unfortunately most of the money she brings in goes to day care for our 1yr old son. Not to mention the price in fuel it takes to travel each week back and fourth to work.





After having my current financial situation carefully analyzed, I have concluded that I have no choice but ask you for your help on avoiding the foreclosure of my family’s home.



Due to the dropping of home prices that have affected the entire country in the last few years, I currently owe more on my mortgage than my home is actually worth.



Please consider allowing me into your Short Sale Program so that we can lower the price and sell the house quickly before it goes into foreclosure. This will allow me to settle my financial obligation to you and have a chance to get back on my feet.



Please understand that financial hardships can occur and many times it‘s not a choice. I deeply appreciate your help and understanding in this matter. If you have any questions, or need anything further from me, please contact my agent name here (number here) or me personally at (number here)





Sincerely, me

property address
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Re: Advice on Short Sale process
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Old 06-30-2008, 07:18 AM
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Re: Advice on Short Sale process

MrWright,

It sound o.k.................but you might want to also focus on the fact that you have a contract on the home............your letter sounds like you are just beginning the process and you had said in your original post that you have a buyer that put an offer in on your home............CW needs to see that again as that does make a difference..........escpecially if you do the emails.........they go to a different dept......
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Re: Advice on Short Sale process