According to an article in the Sacramento Bee today, California is imposing a new 90-day foreclosure moratorium starting tomorrow - Monday, June 15th.
A loss mitigation rep in the short sale department from GMAC actually told me this was coming a few weeks ago. He was the negotiator for a short sale that I closed with THREE mortgage loans. The first (with GMAC) was approximately $389,000, the second (also with GMAC) was approximately $73,000, and the third (a SMUD loan that had been used to finance energy efficient dual pane windows for the house), was approximately $9,500.
The house was sold for $219,000, and the written short sale approval came for all three loans within 16 days from the date we received the offer. I was able to negotiate a FULL payoff for the SMUD loan, with the remainder going to GMAC's two loans. Why were they so eager to pay off the SMUD loan in full to get this process over with?
According to the negotiator, their rationale was that they wanted to recoup any funds as quickly as possible via the short sale because the upcoming moratorium would more or less indefinitely delay GMAC's ability to foreclose and resell the house in a timely manner. Not sure if other lenders will look at their short sales in the same manner...time will tell...
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