I just got off the phone with the manger of workout and they said as of 3/25/08 they do not do short sales on 2nd/rental/investment properties. Has anyone else heard this? I have been working on a property for over 8 months and had several buyers but they all walked because of CW taking so long. Now I have a buyer and all we want is a closing date. But now I get we dont do SS on 2nd homes.
I dont understand this policy. Anyone confirm this? or know why?
I wonder if it is because they have had investors trying to short their own properties to have a friend or associate buy them cheap?
It does seem rather "short -sighted" to not try to resolve the loan before they get it back as a reo and then have to take the huge losses that may be necessary in a declining market.
Countrywide has NOTchanged it's policy's regarding the above.
Although, Ocwen has discountinued doing short's on FTD's. They are only doing loan mod's moving forward. They are hands down the worst to work with anyway.
[ Edited by jackbenimble on Date 03/27/2008 ]
It would make sense that they don't do them on those properties anymore...
The reason I say that is because the mortgage-debt relief act has made it so that banks cannot sure/recoup costs off of foreclosures that are owner occupied, but they CAN off of investment properties. So, I am assuming that Countrywide has so many losses now that in order to get some assets back or tax benefits they will begin suing investors that default.
I stand CORRECTED. CW just informed us of this change. No longer will they be doing shorts for non owner property's.
Let me clarify.. The reason is they are so far behind with each mit handling 1000+ files that they had to do something as their is no more money in the budget to hire loss mit's. They are NOT going by how the loan itself was submitted but rather if the house is currently vacant. Your word for it, in other words. However, they "may" request supporting documentation such as utility bill's etc...