Jumbo mortgage short sale challenge!
After covid-19 pandemic shutdowns killed this CT couple's restaurant business, they faced massive financial losses and fell behind on their mortgage payments and other debts.
Now running out of time and facing foreclosure, they decided to pursue a CT short sale to avoid the foreclosure and attempt to settle their debts.
After coming out of forbearance and not being able to get back on track with their loan, the mortgage payoff amount had ballooned to over $1 million dollars on this jumbo loan with PHH mortgage services (newrez). Sadly, the home was only worth about $750,000. In addition to the mortgage the sellers had multiple business loans and DRS debts secured by the property, resulting in liens worth over $2 million dollars.
The only positive light in the whole situation was the hot sellers market, so I knew we would at least be able to get the property under contract quickly. With a looming foreclosure sale date it would be critical to get the home under contract quickly so we could start working with the lienholders on the short sale.
Sure enough a buyer was quickly secured and we went to work on the short sale approval with PHH.
Jumbo loan short sales can be totally unpredictable as portfolio loans are not subject to mainstream short sale guidelines. Surprisingly, Newrez (on behalf of PHH mortgage) quickly went to work on the short sale, and delivered an approval letter with full debt forgiveness in just over a month.
The other lienholders were not as pleasant to work with. We spent the next several months negotiating with the sellers lienholders to get them to release the liens against the property. While they did not forgive their debt balances, they ultimately agreed to release their liens for small payoffs, clearing title for the sale.
With all the releases in place, we were able to close and these very relieved sellers walked away from their upside down loan, with over $300,000 of excess mortgage debt completely forgiven!
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We are grateful to Minna for her knowledge, professionalism and expertise in shortsales. She truly cares about her clients and it is evident in the manner she represents them. She has a strong work ethic and keen negotiation skills when dealing with financial institutions and buyers. We strongly recommend Minna and her company if u want immediate results.
Last Updated on November 28, 2022 by Minna Reid