LAST RESORT
In a last ditch effort to help my sellers who are upside down on their loans and can't pay their mortgages with Downey Savings and National City, I contacted Mortgage Resolutions to see if they can help my clients.
Mortgage Resolutions offers, according to them "as full complement of services designed to assist homeowners, agents, brokers and mortgage lender/services in working through delinquent and At Risk mortgages." For a fee of 1/3 the agent's sales commissions, they would have handled all the nitty-gritty details, contacting the lenders, processing the paperwork, etc.
DOWNEY SAVINGS: Foreclosure preferable over short sale?
Upon mentioning that the first lender is Downey Savings, and that Downey sold the note to private investor, I was told that this is NOT DO-ABLE. Downey Savings won't approve short sale. Sadly, they promote themselves as "The Friendlier, Easier Place to Bank". HA!
The second lender, National City said they will accept 15% of the value of the loan, provided that the homeowners pay the difference. Another case of misrepresentation since this bank's motto is "Banking Made Simple."
SHORT SALE IS NOT APPROVEDIt's heart-breaking to have to tell my sellers that I can't help them. All I could do at this point is to give them referrals to bankruptcy attorneys. Because at this point, the end seems to be foreclosure and bankruptcy.
