E trade is the second lender on a short sale. Anyone have any experience with them agreeing?
I am representing the seller and his first is with Citimortgage, He recieved his NOD while I was at the open house this past Sunday so now we’re trying to beat the clock and have about 2 months.
I just sent the letter of autho. to both Citi and Etrade (HELOC) and today we received an offer. I’m wondering if anyone has heard of Etrade Bank agreeing to a short sale.
I also heard that second position is starting to require 10% minimum. Does anyone have any direct experience with either of these.
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E-trades requires 10% of the loan amount. I just got approvel from the 1st lien holder which is LItton Loan Services and E-trade is the 2nd, both approved. Make sure that you ask you’re negotiatorto post pond the trustee sale. If you’re in the process of negotiation a short sale they well post pond.
I’ve had the same thing happen with etrade. They had the First on a short sale in which i represented the buyers. In the short sale acceptance they stated they would allow the short sale to proceed and release the lien on the property but declined to accept the minimum net proceeds in full satisfaction of the amount due under the loan. After consulting two RE attorneys the decision was to foreclose on the property. We tried to have the language changed in the short sale acceptance time an again to no avail. 7 months of hard work a distraught buyer and not to mention seller! Be very carful taking Short sales where etrade is the lender. Gd luck
If it wasn’t purchase money then the one action rule exists. The second may have been wiped off of the title to the property through trustee sale but they have up to 4 years to seek a judgement from the homeowner. This would then be their “one action”.
They will usually sell off this paper to a recovery or collection agency for pennies on the dollar. These folks can be VERY difficult to deal with.
Etrade said in the approval the note holder reserves the right provided in the note will remain enforcable if allowable by law, including but not limited to the collection of any deficiency balances.
My client did his due diligence and after a few days gave me the o.k. to continue and close the deal.
I guess you never know what a client is going to decide.
Our loan is with PNC/National City as the servicer but ETrade as the investor. HELOC 2nd (non purchase money recourse loan in California) with a balance of $350K.
We are having a hell of a time. Six months ago, they agreed to a lien release if we got them 40% or a full release if we got them 60%. At the time we had perfect credit and some money in the bank and an offer on the table. That buyer walked.
After the buyers walked we requested that the bank approve a slightly lower short sale since, in the high end market, an unapproved short sale sells way low. They would not.
Now six months down the road we have been late the last 3 months (30 days) and have no money in the bank (husband unemployed). We finally got another offer that nets them $38K. Furthermore, their BPO is now $200K less AND less than our first so they would net nothing in a foreclosure sale.
We just got the answer back and they said their offer remains the same as six months ago i.e. $215K for settled in full or $150K for a lien release.
Since our loan balance is $350K, I’m assuming they think we will make up the difference of $175K or that the buyer might be willing to pay as much as $350K more than their BPO.
Are they crazy? They are allowing us no alternative but to let the house go into foreclosure. We asked them to come back with something more reasonable as that settlement was based on a different market and a different financial picture and they said they would not. I asked to speak with Etrade directly and PNC said I could not.
We are beyond frustrated in large part because we could have had the house sold for only a minor loss a year ago but that would have required a short sale negotiation and those buyers were not interested in the short sale process. So our offers are low because of the short sale process yet the bank wants us to make up the huge shortfall that they caused.