Short Pay Scenario, HELP ME Please!!!

I got a friend who has an investment single family residence in Palmdale, CA. He can not continue making the payments due to some problems he has; however, he’s never been late. The property is for sale in SHORT PAY for not a long time. He offered this property to me and if the bank accepts the short pay, I can buy it for $70k less than the fair market value. The lender is Countrywide on both loans because it is an 80/20. I’ve already call loss mitigation and ask for the short pay package. Do you think the bank can consider a short pay if he’s never made a late payment. My other question is that he has his primary residence, do you think it can affect the transaction. Also if you can tell me what strategy I can use to negotiate with the bank in order for me to get a successful deal. :help

If he has never been late on a payment, and or is not currently behind on any payments, then i would say the mortgage company will not even talk about a short sale.

Countrywide specifically has a program for homeowners in distress wherein they will discount the note for a fast sale. The homeowner does not need to be in default, they only need to be trying… and failing… to sell the property. I do not know what Countrywide requires to enter the program. The Realtor is limited, to the best of my understanding, to a 1% commission. Note that this is NOT the same as a short sale. It is a specific program unique to Countrywide. I believe it is called a ‘Quick Sale’, and I believe that the discount amount is take it or leave proposition.


Additionally, other servicers will have similar programs if they do not already. Everyone in the industry is scrambling to deal with the impending tidal wave. See the following link for a preview of what’s to come:

If you have a really strong hardship letter and a hud1 along with a contract or a listing agreement fax it to them. It dosen’t matter if he is late or not

Fax it Attn Hope Team with the loan number there fax number is 626-927 2403

Countrywide is really easy to work with.


If your friend is NOT living in the home …chance are extremely close to zero on getting short pay or short sale.

I have friends… not clients… who are going through this with CountryWide. I’ll have to check up with them and see what is going on, but last I checked they were out of the house. A number of the companies that I dealt with wanted homeowners out ASAP to minimize the potential for deliberate destruction, but I guess it depends on the bank.

I meant to say if the home is used as an investment and the people do not live in it…because it is their rental, investment then the chances of short pay/sale will be zero.

Darin, I am about to close a short sale with WAMU that was an investment property. The Homeowner has a primary residence. House was vacant when BPO was done. WAMU discounted payoff 30%. The homeowner just needs to state this in their hardship letter, that the mortage is more expensive than the house, and the HO can no longer find tenants/ buyers… it worked for me, but then again, this is my first. Just my two cents.

Sweet !!!