My Client has a NOO property and is current. His 1st loan adjusted 6 mo.s ago. Self Employed income is on the decline. $3092/mo.negative. Needless to say payments are difficult. Property is in CA
1st balance is $490,000 Greenpoint Mortgage
2nd balance is $72,000 Countrywide
Value is approx. $390,000
We conference call Greenpoint today. The Rep. does a financial analysis then transfers us to Loss Mitigation. LM tells us there is nothing they can do until he is 90 days behind in payments. They advise us to list the property for a possible Short Sale. They say he can not offer a Deed in Lieu because of the Junior Lien. They basically said they wouldnt even consider a short sale until the property is listed for 3mo.s or the HO is behind 3 mo.s. So they said bring us an offer and then we will consider it.
We conference call CW. They said if the property is sold via short sale, they will pursue the homeowner for the entire amount because they wouldnt get anything. But they have to agree to the terms of the Short Sale. Is this true they will pursue the HO for the entire amount?
The HO has maintained good credit and is looking for the best option.
[b]If he falls 3 mo.s behind his credit is screwed. Since this is a NOO property he will get 1099’d right?
Has anyone gotten a short sale approved with Greenpoint where the HO is current?
What will happen with CW will they accept $1k-3k?
Can he offer a Deed in Lieu?
OR… Should he stop making payments and let them FC? In this situation how long can the tenants stay?[/b]
Your help is very needed and appreciated. Thanks