As a Santa Clarita Realtor specializing in Short Sales, I spend a large amount of time on the phone negotiating with asset managers for clients my wife and I represent. This particular client's job requires a security clearance and a delinquency would cause him to loose his clearance and his job. I recently escalated this file to a Level 2 supervisor at Fannie Mae because OneWest Bank formally know as IndyMac negotiated a deal that all parties agreed to, but ultimately was denied. This file was negotiated after a OWB loss mitigator supervisor verified the current mortgage status was not an issue, due to the fact that there was Imminent Default pending.
During this conversation the supervisor at Fannie Mae stated they recently changed the guidelines, according to their MBA Trust Document Fannie Mae will not consider a short sale on homeowners with current mortgages, homeowners must be delinquent.
Here is wording from the MBS Trust Document:
2. Default Reasonably Foreseeable (Imminent Default)
Servicing Guide, Part I, Section 202: Servicer's Basic Duties and Responsibilities;
Expansion of Forbearance Term Part III, Section 102.04: Repayment Plans; Section 804.04: Temporary Forbearance; Part VII, Section 302: Special Forbearance; Section 303: Repayment Plan; Section 502.02: Modifying Conventional Mortgages; Announcement 07-03R2: Reissuance of the Instructions for the Fannie Mae Single-Family MBS Master Trust Agreement; and Announcement 08-07:
Effective immediately, a servicer may begin loss mitigation efforts for any mortgage loan when a payment default is reasonably foreseeable (imminent default) rather than waiting for an actual payment default. Accordingly, a servicer may agree to one or more appropriate and permitted loss mitigation alternatives (e.g., forbearance, a combination of forbearance and a repayment plan, and an Early Workout (discussed in the following section)), if the servicer has determined that a payment default is reasonably foreseeable, and a concession to the borrower in the payment terms is advisable. In determining whether a payment default is reasonably foreseeable, the servicer must evaluate the borrower's financial condition as well as the condition of and circumstances affecting the property securing the mortgage loan. The servicer also must document the basis on which it makes a determination that a payment default is reasonably foreseeable. This new rule allowing earlier intervention applies to all MBS mortgage loans and all whole loans held in Fannie Mae's portfolio.
Preforeclosure sales, acceptance of deeds-in-lieu of foreclosure, and short payoffs (accepting a payoff for less than the amount owed), will not be permitted loss mitigation alternatives for use with borrowers whose loans are current but are determined to be in imminent default.
Following is a list of examples of the types of factors the servicer may consider when evaluating whether or not a payment default is reasonably foreseeable. Factors for consideration include, but are not limited to:
information received from the borrower (for example, changes in employment and other income sources, or family medical status);
the payment history of the borrower(s) (as reported by a credit bureau) on other indebtedness;
the loan-to-value (LTV) ratio of the mortgage loan when it was originated;
an estimate of the current LTV ratio;
whether the monthly debt service under the mortgage loan has recently changed or will soon change;
the credit score of the borrower(s); and
the occurrence of a natural disaster (such as a tornado, hurricane, or flood), terrorist attack or other catastrophe caused by either nature or a person other than the borrower that: - the servicer reasonably believes adversely affects the value or habitability of a mortgaged property; or - the servicer reasonably believes adversely affects the borrower's ability to make further payments or payment in full on the mortgage loan.
A default is reasonably foreseeable when the servicer is notified or otherwise becomes aware of an event or factors (including those listed above) that is or are expected to cause the borrower to be in default in the near future, generally within 90 days.
As you can see this document is confusing. The attorney I have partnered with is reviewing this case for legal intervention.
From the above scenario you can see it's critical to hire a Realtor that is experienced & equipped to handle these types of transactions. If your facing foreclosure, we are Santa Clarita Realtos who specialize in foreclosure avoidance. Our Free consultations educate clients on the options available to keep their home, or sell their home through a short sale. When facing foreclosure your goal is to minimize your financial loss and limit the damage to your credit history.
No comments:
Post a Comment