Here’s the latest information on what Countrywide will do and what they won’t do.
I reported that there were various rumors going around that involved countrywide and short sale negotiations.
Some of those were true - others were not. ( here and here )
Then again, the rules are changing constantly. CFC has informed it’s Loss Mitigation Department as of late last week via an internal memo (I tried to get a hold of it without success) that they are indeed considering short sale negotiations on most all property.
Here’s what I’ve learned:
1. It depends on the Investor. Is the loan a Fannie, Freddie, ALT-A, Equity, etc.?
2. Needs a surplus percentage higher than 30%.
3. If not, must show a proper Financial Hardship
What constitutes a Financial Hardship with CFC?
- Natural Disaster
- Disability Mortgage Holder or Family Member
- Death of Mortgage Holder or Family Member
- Illness of Mortgage Holder or Family Member
- Property Damage (mold) Greater than 50% or more of the property
- Divorce
- and Other Financial Considerations
ME: “How do you calculate the surplus percentage?”
THEM: She didn’t know. The memo didn’t say. She said it was much like DTI. I was pushing my luck. I tried to get one more question answered…
ME: “Does the home have to occupied?”
(see Momma don’t let your Countrywide Houses go vacant)
THEM: “Not if they have a Financial Hardship”
So this tells me that if the present debt obligation is high - the income is low, according to their “surplus percentage” you don’t need to qualify under the Financial Hardship section.
However, if the income is high, the debts are low, you might need to knock off your significant other to qualify. At least according to their memo.
Remember all rules are meant to be broken. Never give up hope!
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Mike- We just got off the phone with Country wide, the assistant to one of the VPs. We were able to have CW stop a sale of a foreclosure the eve before the sale. She liked the offer we had on the table, she though for sure it would fly. The investor just told her today that he wants 30K more than that offer and no one is going to pay in Florida more than 10% discount of market value because prices are still coming down. This was not her fault. She did the calculations and so did we. I tell others to not blame what one can not control. It is the investor's decision in the end, not hers. She bent over backwards for us and our seller, and now the investor is rescheduling his sale date in a neighborhood with 1000 homes where 10% are up for sale, mostly short sales and foreclosed properties and the builder is still there competing with free granite, free lake views, free this and free that, causing the resales to remain stale. What calculator is this investor using?
Point being, agents, don't be so rushed to blame CW if they are just the servicer. Katerina
Mike,
Good info. I haven't done a short sale with Countrywide yet, but probably will.
Question.
Can you get a short sale approved it the loan was a refi?
I don't think you can. But, you would know, wouldn't you Mike?
Katerina - "Point being, agents, don't be so rushed to blame CW if they are just the servicer." Good stuff. Most don't understand the difference between a servicer and a Note Holder.
Fran - You bet! Thanks.
Lynn - My pleasure. You had a success story involving with Countrywide didn't you?
Karen - I'm have a couple in progress right now. The key, according to the memo, if they will or won't approve goes back to
After pushing some Loss Mit Buttons yesterday I was able to get to a verbal approval on a third, just waiting on an Updated HUD-1 to get the Release Letter.
I'm on my first countrywide short sale.....I almost lost it on the phone yesterday...From what I read, I'm in the early stages...week 5...only 7 to 10 business days left for a loss mitigation specialist to be assigned.
This is the idiotic part..... My offer will cover the prinicipal balance of the loan plus an additional $500 dollars... We are only $3,000 shy of a total payoff, the $3,000 is the late fees, interest, service charges, escrow... from the past 3 months of none payment.
I've already received the approval from the 2nd Mortage Holder and am ready to go with them....
Noone at Countrywide Loss Mitigagtion Department seems to understand, your principal will be paid...JUST FORGIVE YOUR FEES... My response has been, well its a short sale then...
Any help would be appreciated.