Need URGENT Short Sale help!!!

[tbynum]

When negotiating a ss, how do I handle a Loan Servicing Company?
Do I handle them just as I would with the Lender?

I have the payoff amount and statement, so how do I fill out the
HUD-1?

Does anyone have a great copy of a very good Cover Letter to
send to the Lender?

[Randy Lee]

"Loan servicing companies handle the operational aspects of mortgage lending. They collect mortgage payments, credit those payments, send reminders when payments are overdue, assess late charges, establish escrow accounts for the payment of taxes, hazard and flood insurance, and private mortgage insurance. They pay out taxes and insurance premiums when due, and account for all of the above to the investors who own the loans. They also are responsible for managing loss mitigation when a loan gets in trouble. This can include collection activities, loan workouts, and, if necessary, foreclosure. Some even manage the foreclosed property."
(read more here) (http://www.mortgagenewsdaily.com/662005_Mortgage_Servicing.asp)

...having computer trouble at the moment. I'll try to forward a copy of my letter later.

[Dan Auito]

Thanks Randy, we look forward to it! Dan

[Randy Lee]

Here is the letter I promised. The origininal is found on page 43 of my book "Short Sales: The Secrets and Strategies of Pre-Foreclosure Investing":

-------------------------------------------
Mrs. Jane Smith
Giant Banking Institution
c/o: Loss Mitigation Dep.
5678 Metropolis Blvd.
Gotham City, IL 56748

Re ccount Number: 3445-AM-343339
Address: 1234 Anywhere Ave, Hometown, OH 43613

September 20, 2006
Dear Mrs. Smith:

We took into consideration the many factors relating to the subject property prior to calculating our first offer. Although we understand that your company holds a lien against the property for an amount more than we are willing to offer, we believe the materials we’ve provided clearly illustrate our offer to be reasonable given the property’s condition and this situation.

When your firm rejected our initial offer of forty five thousand dollars, we decided to rethink our offer to determine if we could increase it.

What follows is our final and best offer. We have again included information supporting our decision to make this offer.

Included in this material is our “Repair Estimate Statement” that projects the repair costs to be in excess of $30,000 to make this property salable. Also included is our latest “Comparable Sold Property Report”. This demonstrates that the likely selling price will be near $58,000.

Naturally you will need to consider your legal expenses involved in foreclosing and readying the property for sale in addition to the repairs.

We believe when you calculate these expenses you will see our offer of $51,250 is likely better than you can expect to net through the ordinary channels of eviction and foreclosure. Ours is a faster, easier solution that will help you improve your default rate.

In addition it is a solution that will allow Tom and Sally Jones to relinquish their ownership in a way that doesn’t include bankruptcy and foreclosure.

Please review our offer. Feel free to call me directly with any questions.

We look forward to solving this problem for you.

Sincerely,

John Q. Investor
Direct Line: (555) 555-5530

------------------------------------------------------

I hope this helps.

[Dan Auito]

Here are a few other things to consider:

Batch 1
Executed Sales Contract (Your states standard real estate contract)
Hardship letter
Financial Statement
All supporting docs for the homeowner
Check stubs, Tax returns, bank statements,
Disability docs, SS statements, etc.
CMA report(s) - Low comps, with pics and full information
Title search report - shows status of taxes, liens, etc
My analysis worksheet on this property
Anything else that supports your request for a discount

Average - 20 - 30 pages

I make pictures available online - they don't fax well and so far the banks like this!

Batch 2 - sent after the BPO

Contractors estimate
Offer letter to bank with NET proceeds towards first mortgage payoff
Preliminary HUD-1 showing all funds and dispersment
My updated analysis worksheet - BPO figure taken into account

Average - 6 - 10 pages


The amount that the bank will accept is directly influenced by the BPO. Rather than leave money on the table and/or teeing off the LM, try to delay your actual offer until after you have a chance to meet with the broker performing the BPO.
_________________

[Dan Auito]

Some mitigation contacts:

Countrywide.
Loss mitigation. 800-669-6650
workout fax just lost it (rats puke) someone please add this fax number.

Regions
Loss mitigations 800-986-2462
Workout fax901-580-3454

These are just a few. If you have any please lets continue to build this list. It will be good for references.

Citi Mortgage
Loss mitigations 800-753-3673
workout fax 469-220-2809

New Century
Loss mitigation 800-788-7306
workout fax 949-517-5200

Wilshire
Loss mitigation 888-841-8795
workout fax 503-7970

[scottbloom]

FORM 16.1 

Sample Short Payoff Sale Proposal Letter

May 18, 2005

Ms. Sally S. Short
Manager
Loan Loss Mitigation Department
Bank of Florida
4467 Rich Avenue
Clearwater, FL 33227

Reference Loan Number: FL 08281950, Robert D. Default, Mortgagor, 3345 Costa Rosa Way, Tampa, Florida 33649

Dear Ms. Short:

Please find enclosed the short payoff sale package for loan number FL 08281950, Robert D. Default, mortgagor, 3345 Costa Rosa Way, Tampa, Florida 33649.

My proposed purchase price of $90,000 is based upon the following facts:
1. Based on the recent sale of comparable properties within the same area, the as-is sale price for the property is between $88,000 and $92,000 (see the attached listing of comparable property addresses).
2. Based on repair cost estimates from three licensed home repair contractors, it will cost between $18,000 and $25,000 to repair the property to a marketable resale condition (see the attached repair cost estimates).
3. The borrower is insolvent.
4. Property values within the area surrounding the subject property have declined by over 20 percent in the past two years.
Please note that I have the funds on hand to close on the purchase of the property within 24 hours’ notice.

Please call me at (305) 938-9926 or e-mail me at ScottBLoom@webuyhousesnational.com if you have any questions.

Sincerely,

Scott Bloom

[jc1409]

Anyone do short sales in Michigan? Never done a short sale, but have been targeting pre-foreclosures with direct mail marketing (just starting so don't know results yet). With short notice period (30 days), time is short to make these happen!

I was wondering if anyone has a set of short sale forms they would be willing to share, or possibly an old short sale 'packet' that they used in the past to give some examples? Jeff

[Beau_Fla]

Some mitigation contacts:

Countrywide.
Loss mitigation. 800-669-6650
workout fax just lost it (rats puke) someone please add this fax number.

Regions
Loss mitigations 800-986-2462
Workout fax901-580-3454

These are just a few. If you have any please lets continue to build this list. It will be good for references.

Citi Mortgage
Loss mitigations 800-753-3673
workout fax 469-220-2809

New Century
Loss mitigation 800-788-7306
workout fax 949-517-5200

Wilshire
Loss mitigation 888-841-8795
workout fax 503-7970

Hi Dan,

It has been a long time since I have been to this forum. I always learn something new when I am here. Thank you for the loss mitigation contacts. These can be hard to get.

Beau_Fla

[Suddenly Home]

AMC Mortgage Services (Home Retention Group)
1-800-211-6926 tel
1-949-862-3529 fax

Wells Fargo (Loss Mitigation Dept)
1-800-416-1472 tel
1-866-359-9585 fax

[Beau_Fla]

The following are notes and potential numbers for loss mitigation departments
that I have picked up on another forum. I have not vetted this information
and do not know if this information is still any good. But, I thought I would post the information anyway.
--------------------------------------------------------------------------

Some interesting notes on getting the loss mitigation department phonenumbers

NOTE: Dept.# and Extns Change often--the BEST Source of CONTACTING the RIGHT DEPT. is to ASK the Homeowner for the # of the Lender Rep WHOM Called/Mailed them LAST???

CMLA's SECRET WEAPON #2 is to use the Lender's Website Email/Contact form to REQUEST a Short Sale or Forbearance agreement. 9 times out of 10 your Web Message will either GET FORWARDED and/or GIVE A #
for You to Call to GET WHAT YOU NEED!

Washington Mutual- Loss Mitigation
Phone: 800-496-9633
Fax: 818-775-2010

Bank of New York- Loss Mitigation
Phone: 212-495-1784
Fax: 212-415-2035

Well's Fargo
Phone: 800 or 888.231.0757

Citi Mortgage
Loss Mitigation 800.682.2286
Foreclosure 877.202.3846
Loss Mitigation 866.357.6015
Loss Mitigation Fax 248.488.7727
Workout Fax 248.488.8357
Loss Mitigation 866.357.0614
First American 800.511.1278
Workout Fax 636.256.2884

Citi Financial
Foreclosure 800.424.3562
800.423.8158
800.848.7491
Dial by Extension 800.888.6001

Cendant- 800-750-2518.
fax#-856-917-8334

Homecomings
800-206-2901
(858)-874-7417


Litton
713-966-8803


Chase
(510)652-0401


Saxson
262-502-6724 or
817-665-6537 or
414-278-8068

Natl City Mtg
937-910-3563

HomeSide
904-281-3900

REO Dept
ORE Property Listings
Foreclosure Dept
Special Credit Dept.
Special Properties
Real Estate Dept
Here is Whitney National Bank's Ph# for REO's in AL; AR; MS;TX;LA
1-800-347-7272
Press 0
Extension 3554
You will speak with JoAnn. Smile and thank her!! She will FAX you the list

immediately!

CitiMortgage
Tim Hull
800-695-0384 x5088 or direct 636-256-5088
636-256-4041 FAX

Fairbanks
888 818 6032
customer service fax 904 232 4607

American General
770 614 6005

Fairbanks
801-270-7713
Loss Mitigation or 888.818.6032
John is the head of the department.

Citimrtg Loss Mit : 866-272-4749
Litton: 800-247-9727
Faibanks (ARGH) very difficult !
888-818-6032 foreclosure dept
801-269-4269 fax
800-258-8602 cust. service

HomEq
866-822-1471


Wells Fargo
877) 216-8448 Loss Mitigation
(800) 551-9808 Borrower Assistance
(800) 868-0043 Home Owners in Foreclosure
(800) 352-7654 REO

First Horizon
Their number is 800 707-0139.
ask for extn: 17305

Chase Manhattan Mortgage
315 Vision Drive
Columbus, OH 43219-6009

Homeowners Assistance Department (foreclosure)
Telephone: 1-800-446-8939
Fax: (614) 422-7259

1-800-981-3792
fax 1-858-605-3006

WAMU
866-356-5789 to the actual foreclosure

Homeowner's Assistance Department
Phone: 614-422-0842
Fax: 614-422-7259

Chase Home Finance Homeowner's Assistance Department
Tel 614-422-6562
Fax 614-961-3080