First of all, I have been reading posts on this forum for the past 3 months and have found them to be quite informative and motivational. As a new investor, that is greatly appreciated. Because of this reading, I will not waste anyone’s time with questions regarding contracts, “the list”, or other questions that can be answered with some reading of archived posts.
My question is about Countrywide. I have a homeowner who owes $260K with an 80/20. Both loans are with Countrywide. I have read many posts of people voicing frustration, disappointment, outrage etc. regarding Countrywide. Are they so difficult to the point that I should steer clear of them for my first short sale? I am eager to start investing on my own (I have been under a mentor for the past three months and have learned a great deal), but don’t want to be overzealous and take on a short that may better be served if I pass the lead on to my mentor due to Countrywides reputation.
Take what other say into consideration, but don’t ever shy away from trying something because it did not work for others.
Deal with Countrywide and get kicked around – or not. You have a mentor, work with him/her on this. In the end, win or lose, you will come away stronger from the experience.
Thanks for the reply. I went and inspected the exterior of the house today and it is in need of some serious work. I believe the interior will need some repairs as well. I am going to go for it and use my mentor as a crutch if absolutely need be.
I just started a short sale with Countrywide this week. They are kind of odd when you talk to them on the phone. You never seem to get a good phone number to work with. As for a short sale package they don’t have one…from the buyer you will need pay stubs, bank statement, and I added a hardship letter. I would call to make sure because I got two different answers on what was need for a short sale. Now from the buyer you will need P&S, HUD-1 or Net Sheet. They also told me to call back in 2 days after you submit everything to make sure they got the package. They also went on to tell me that it could take up to 6 weeks be fore someone would be assigned to the account. :banghead
You need to constantly follow-up with them. Also, it usually takes about 2-3 days or as long as a week for your short sale package to be logged into their system once it arrives there.
Thanks for the input…I am faxing the authorization to release info in the morning (Monday). The homeowners are nervous though regarding the potential of a deficiency judgement (I will ask countrywide to waive this in my offer) or a 1099 for the debt forgiveness. I have explained to them that their tax bill will only be for a portion of the forgiven debt.
Does anyone have anything they say or do to persuade the homeowners that the 1099 is not the end of the world besides the obvious that it prevents the Foreclosure? Also, how do people feel about a generous “cleaning fee” or purchase of an item after the deal closes being given to the homeowner?
I had a fairly easy tiem with Countrywide. The numbers haven’t worked out as of right now, but the rep I had was very easy to reach, was always friendly (which helps jsut to make it less annoying!) and she actually knew what she was doing. You just have to get a good rep I guess. Doesn’t mean they’ll actually come down far enough to make it a DEAL, but they were easy enough for me to work with.
A good accountant should be able get them out of having to pay taxes on a 1099.
Other than that, which is better: the atomic bomb of foreclosure on their credit report which can affect everything they do, or the POSSIBILITY of having to pay taxes (i.e. say 15% of a number on the 1099 that they may or may not get)?