Every client we get to help we approach with an open mind and heart, but clients who have Flagstar, Ocwen and Suntrust we have a special place in our heart. If we’re completely honest those are just the files we don’t want to work.  Add on top of that, Freddie Mac and you’re one Google search away from find out these are “deadly” combinations for home owners to avoid foreclosure.

I had a recent conversation with a negotiator that was servicing a file with Fannie Mae and told me the ways you can get an automatic short sale approval from Fannie Mae.  I should correct myself and say “approved of” but only the value and the offer are needed if you have one of these 4 circumstances.  In each instance, the borrower can remain current if they choose and still qualify.  

We bring you another success story this time featuring Wells Fargo and their servicer ASC.  This particular home was a condo in Decatur with 2 liens on it.  To top it off, the home did not have an air condition and had not been updated in 20+ years of ownership.   The owner had lost his job and frankly had been struggling for some time.  When he called it was only a short time before the home would be foreclosed.  Unlike most homes in this price point (under $50K) this one could not be rented due to HOA restrictions.

This short sale success story is special to us.  This couple had not only lost their job but had mounting medical bills as well as taking additional responsibilities as caregivers for some of their Grandchildren.  It was one of those short sales in Buford that we just say, ironically, “Praise the Lord for short sales.”

The lender was M&T with Bayview Servicing servicing the loan.  Even with a clear hardship this short sale faced several problems.  

This site has been live for almost 4 years and we failed to tell you of our success.  Not to boast but rather to share the short sale success stories we’ve had (and failures) so that you can see what will work for you or not.

One of the most memorable stories was a home for sale in Buford.  It was a Chase short sale and our client had lost his job.  Just months prior he was working hand in hand with a prominent author in leadership.  Unfortunately for him, his boss sold the company which left him as an odd man out.  After several months of trying to make ends meet he could no longer afford the home.  This continued for over a year when Chase told him about a short sale.

Does Freddie Mac Pursue Deficiency Judgments?

In a short sale, it’s a pretty common question to ask whether or not, Does Freddie Mac Pursue Deficiency Judgments? Luckily for us there’s a clear definition already out there for this.

Chapter 55.3.1: IRS Form 1099-C, Cancellation of Debt (04/25/06) states that the Servicer must report cancellations of Borrowers’ mortgage debt on IRS Form 1099-C, Cancellation of Debt, as required by the Internal Revenue Code.  Under 55.3.1.d .6 it defines a short sale (not by name) as “A discharge of indebtedness under an agreement with the debtor to cancel the debt at less than full consideration.

Most of the time you want to get it in writing and possibly reviewed by an attorney but this is pretty clear that a short sale completely cancels the debt.  The way it’s worded above, it’s worth pointing out that your credit report often reports a short sale this way as well.

Seterus Short Sale Process

Seterus Short Sales are thankfully much more rare than many other “servicers” or banks.  Seterus is one of those “banks” that is more like a credit union or small group that doesn’t think Short Sales deserve the attention of their staff or processes.  After all, Seterus doesn’t make money on short sales, so why bother.  Most often you’ll have to escalate or find work around when dealing with them .  Allow up to 4 months from the initial offer from a buyer to an approval letter.  You can (we have) close with them, but don’t expect it to be a smooth ride.