E trade is the second lender on a short sale. Anyone have any experience with them agreeing?
Submitted by Elisa Uribe
from CA
- 08/19/2009 - 8:22am
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.
Comments
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.
Thanks so much for sharing the information. Makes me feel like we have a chance!
Do you have the contact information for Etrade to initiate a short sale? I've been transfer from one dept to another with no correct information regarding initiating a short sale. Please forward the information. I would greatly appreciated.
I too am dealing with an e-trade second. Here is my experience. The first which is Wells Fargo agreed to short sale and will credit second(e-trade) $3000 to release and allow sale. The total balance owed on second is $35000. The first which is owed $581000 agreed to sell for total net of $395,000 almost a $200000 loss. E-trade's response "We want a minimum 30% of principal and have the seller agree to a unsecured deficiency note for the rest." So a company who gets nothing when the 1st forecloses wont release with out full reimbursement, and we wonder why America's Banking system almost collapsed.
thanks for your post Simon and Gino. Luckily after 3 months we still have a buyer willing to buy the house. The first agreed to give Etrade 10% and of course they wanted 30% so now I'm waiting to hear. The one thing I will say about Etrade is they get back to me right away- now if they will just agree, then they can have a little bit of something in their pocket, otherwise, this deal is going to die and they will get nothing. Strange that when looking at "the books" something isn't better than nothing....I'll keep you posted and thanks again for giving me hope:)
Now etrade says" Short sale for a net recovery of 10.1% in the amount of $7,000 is rejected. E*Trade will counter offer to a net recovery of 14.5% in the amount of $10,000. E*Trade will agree to release the lien from the property for a short sale in the amount of $10,000 but will not agree to release the Borrower from the deficiency balance. "
I'm hoping to still make this happen. Any suggestions out there? The first bank will not budge on giving the second more than $7k.
Has anyone heard of the second not agreeing to release the borrower from the deficiency balnace?
Elisa - any chance the eTrade 2nd was a purchase money loan? If that is the case then it can help to remind them that they have zero right to recover a deficiency in CA anyway.
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
Unfortunately he rented the house and I think the zero right to recover a deficiency in CA if only if the house was owner occupied. RIght?
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.
Just wanted to let everyone know the second agreed to $7k and the property closes tomorrow. It was a long process, but Happy Clients in the end:)
Was the second E-trade? Full release of seller?
Was the second E-trade? Full release of seller?
Was the second E-trade? Full release of seller?
Just wanted to let everyone know the second agreed to $7k and the property closes tomorrow. It was a long process, but Happy Clients in the end:)
Just wanted to let everyone know the second agreed to $7k and the property closes tomorrow. It was a long process, but Happy Clients in the end:)
So does this mean etrade did agree to release the Borrower from the deficiency balance?
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.
Wow. Your story is definitely why buyers do not always decide to wait...short sales are risky for the buyers and the sellers. I wonder if it has to do wtih Etrade being the investor with National CIty holding the note.
Wow. Your story is definitely why buyers do not always decide to wait...short sales are risky for the buyers and the sellers. I wonder if it has to do wtih Etrade being the investor with National CIty holding the note.
I have Etrade as 2nd and they have agreed to 10% which is only $900 more than BofA will allow them. We can work around that. Just have to get the sellers to agree to the Etrade note which says they can go after the deficiency which is about $50k. This is a Heloc in CT so I assume that by law they can go after the deficiency?
It seems these banks area always leaving it open and it's a standard clause in a contract. The seller can call the bank direct and try and negotiate the 50K out of the deal or 10 cents on the dollar, etc. Of course, we're not tax professionals so he should speak to a tax advisor if he's not sure what he wants to agree to. Good luck!
I am a realtor for a short sale, PNC as first andEtrade as second. PNC approve short sale 3 days ago. I have no luck gewtting a call back from Etrade so that I can forward the Short Sale package. Anybody has a good contact number (fax & tel #) for Etrade's short sale department. They are not responding to my voice messages. contacted etrade via 800-762-0710.
THANKS IN ADVANCE!
I found another phone number for their Real Estate Loan Servicing Center 866-344-0552. The ETrade Bank main office phone number is 800-ETBANK-1. We do not see a listing for the loss mit department but hopefully one of these numbers will help.
Thanks! I will try calling 866-344-0552 as well. After calling several tries and so many different telephone numbers, I found out that Etrade uses a servicing company for the case I'm working on. The telephone number I called was 800-729-4810 and was finally talked to the litigation department and was able to obtain an email address to send the short sale package. I sent my package to alicia.smith@pnc.com. I am hoping that this is correct.
You won't get anywhere calling E-trade. E-trade is the investor, the servicer is CLC servicing, which is a division of PNC bank. So you should be contacting PNC short sale dept which is probably where Alicia Smith works. There are other blogs on the web that discuss CLC/PNC servicing of e-trade helocs. They are tough to negotiate with but the bottom line is, most of these are in CA and non recourse.
I am in a short sale situation where by Bank of America holds the first mortgage via countrywide and that note is for 234K, E*TRADE holds a lien in the form of a HELOC for 49K. The house once valued at 350K is now barley worth 195K on a good day and dropping. BofA agreed to a short sale which netted them 191K, mind you that we have kept E*TRADE in the loop since the beginning, we offered to transfer the HELOC over to our primary property a year ago but the E*TRADE representative said that E*TRADE is no longer in the home loan business and that such a move would be impossible. This whole deal has been in the works for 14 months now with the buyers hanging in there and me scrapping by, current with E*TRADE but months behind with BofA. When we sent the offer sheet over to E*TRADE and asked them what they wanted (I would have done about anything) they replied asking for paystubs, income statements and then they ordered their own BPO. This all the while the deadline imposed by BofA is getting closer. E*TRADE said that they would have an answered in 5 days after all the paper work was in, took them a month. Their demand send me to the floor, they wanted 54% of the HELOC or 26K+ at closing and the option to sue for the rest. I offered several thousand at closing and to transfer the lien to a secured property buy that fell on deaf ears. Talking to my contact over there “Al” was like talking to a stump, My Lawyer advised against transferring the E*TRADE HELOC over to our primary for obvious reasons and he was stunned that E*TRADE did not jump at it the day we offered it up given that for all practical purposes it unsecured right now. Foreclosure is looking all too real right now because of E*TRADE and I don’t know what they expect to get in that. That’s where we are. I'm told that i should have been way behind on my E*TRADE loan, that might have brought them to the table. anyone with E*TRADES collections stratagies
These are the stories I find most frustrating! You are being very reasonable and it is hard to believe that they are not jumping on your offer. It is now time to escalate this up the chain of command. I would take this all the way to the CEO if you must. I would also write all of this down and send it off to your local elected officials (Senators, Congressmen, Supervisors). This is the type of story that their staff can sink their teeth into and help you to escalate this up the chain of command. I have personally been involved in situations where this has worked. It does take some effort but can be incredibly satisfying when the power play works. Sometimes it is just the right phone call to the right person and then mountains get moved.
If for some reason you cannot get this approved and you do end up going to foreclosure I hope that you will still make all the calls and send emails to your elected officials. This is the type of lender behavior that all of the government programs are trying to prevent.
Yep, we went through this (see prior story). I can't believe they are asking for 53% as a lien release. With us, they initially wanted 60% to settle in full or 40% for a lien release. Six months later and after going late (we had spotless credit) and several rounds of back and forth, they were willing to release the lien for 10% and we were finally able to get a paid in full settlement for 35%. Etrade was awful and wouldn't do a promissory note or anything. I had the feeling they would come after us for the balance so I really wanted to settle in full. Our buyer came to the table with some more money as did we and it worked out, but not before having to go late.
Yep, we went through this (see prior story). I can't believe they are asking for 53% as a lien release. With us, they initially wanted 60% to settle in full or 40% for a lien release. Six months later and after going late (we had spotless credit) and several rounds of back and forth, they were willing to release the lien for 10% and we were finally able to get a paid in full settlement for 35%. Etrade was awful and wouldn't do a promissory note or anything. I had the feeling they would come after us for the balance so I really wanted to settle in full. Our buyer came to the table with some more money as did we and it worked out, but not before having to go late.
I’d like to be perfectly clear on this, we (my wife and I) never asked PNC to write off the HELOC or for it be forgiven in any way. We are simply asking PNC to transfer it to our primary home that has in excess of 100K in equity. The house here in question was a second home that we bought at a bad time with blood money. The Contact at PNC –Al Lubaway said that transfer is an option but it would take 3 to 6 months to do. I asked why? He said that, that is the way things are going now in the industry. I called several lenders who said that they turn an Equity line around in a week if all goes well and never more than ten days. The closing attorney who works for my realtor said that a simple drive by appraisal and my signature would be binding enough for PNC to release the lien. They would have none of it. E*TRADE/PNC is hell bent of forcing foreclosure for some reason. They must feel that they are better off coming after me that way rather than just accepting cash and an equity transfer. Please know that if it were not for the added burden of the second house with no rental money coming in and the effect it has on our debt to income ratio, I could get another loan and payoff E*TRADE, they don’t even want to hear that. As of right now they want 26K and we offered 10K just last week, no word back yet and I don’t expect to. I believe that Al Lubaway is just a conduit for others because when you talk to him he has no answers, talks in vagaries and often times just sits there quiet. It’s weird
I have a interesting case. I would appreciate any comments.
I took out a HELOC from ELoan for 62K on my home in Arizona, I soon received a job transfer out of state and due to circumstances we ended up doing a short sale. In the meantime, the HELOC was sold or transferred to E-Trade. After 1 year of the short sale, I was contacted by a thrid party collections company demanding the balance from the HELOC. I have a Deed of Release from ELOAN (not Etrade) listing as Beneficiary, "MERS as nominee for E-Loan, Inc" and me as the Trustor.
Does anyone have a clue on what this means? Is this form irrelevant since ELoan had transferred the note to ETrade(Although as I understand it, the 2 companies are part of the same corp)? OR could it mean that they HELOC is considered paid in full. On my credit reports, its listed as an Etrade loan and "written off".
Thanks for any advice.
You would need to go back and read the short payoff demand from your short sale. They may have agreed to release the property and accept the short pay amount but they may have not given you a full satisfaction release meaning that they can come back and collect the difference. It is so important to read the short payoff agreement and look for the full satisfaction language prior to closing on your short sale.
I went back to the documentation regarding above but found no such agreement. I went back to the company who represented me on the short sale and they insist that there is nothing Etrade can do about it based on the fact the property was in Arizona?? They also point to the fact that the Deed of Release I mentioned before states, "Paid in Full". But again, its for ELOAN vs ETRADE. After playing hardball with me for a few days the collections agency hasn't contacted me again in over a year. I did send them, based on advice from a RE attorney, a letter of validation, certified, which they did not respond to. But I'm afraid to contact any of the parties as I don't want to open up a can of worms.
Thoughts?
Check the paperwork you got from the title company. They would have needed a written payoff demand (short payoff) to close your escrow. If you do not see a copy contact your title company and let them know you need a copy of the payoff agreement for the 2nd. The title company should have had you acknowledge this payoff statement. Read this carefully and look for that full satisfaction language.
Thanks for all the advice.
Last thing. What do you think the odds are that they will try to sue prior to the 6 year Statute of Limitations (4 years left).?
I am not certain that they need to sue. I believe (and you will want to verify this) that as long as they are attempting to collect there is not statute of limitations. You may want to try to settle with them (possibly for pennies on the dollar) so that you can begin to repair your credit and ultimately be able to buy another house. I have heard from one source that they wait for you to rebuild credit (when you are no longer a candidate for BK) and then they put the pressure on for payment.
If you can negotiate with them it may be the best bet to deal with it now then have this hanging over your head for the next few years.
Thanks again for the response. The statute of limitations for this type fo debt is verfied as 6 years in Arizona. The only thing that will restart the SOL clock is if I send them any form of payment...no matter how small. But again, they havn't contacted me in over a year....andy my score has improved to 700. When they did offer a settlement last year it was for 40% ($24K) and insisted it be paid in a lump sum. Living payched to paycheck that's not anywhere in my future. I guess all I can hope for is the SOL passes.
Thanks for the info on AZ SOL! So the activist in me says to keep excellent notes on any communication with them. Since you have clearly tried to settle and they have been unreasonable in their demands for a LARGE lump sum payment I would make sure I kept excellent notes of dates, times, names and conversations. If they do come back and try to demand payment I would take this to my elected officials so fast it would make their head spin. I have seen some remarkable things happen when you use the political power play. If you keep notes and show that you have tried to resolve the matter and they have been unreasonable I would think that this would be something that the bank would not want to be broadcast or have some politician use it as the poster child for bad lender behavior. The squeaky wheel gets the grease in this case.
Of course that is just my opinion on the matter.
Just today E*TRADE (PNC) agreed to release the 2nd lien, accept 14% at closing about $7000 on a 49K HELOC. They said that they will go after deficiencies however. Bank of America is putting in 4K and I’m handing over the rest. This short Sale has been in the works for 17 months now; it’s been a very manic ride. The buyers have been very patient. My 1st started out as a Countrywide mortgage then BofA absorbed them and it took months for BofA to put Equator in place. From March of 09 until April of 10 virtually nothing happened but phone calls long waits and nothing new. In April BofA accepted the short sale and we started dealing with PNC. PNC wouldn’t talk until BofA took the deal. E*TRADE (PNC) wanted HUDS, hardship letters and new BPOs. They dragged their feet on the BPO. And then asked for clarifications and amendments made to the HUD. All this took 4 months, E*TRADE. E*TRADE (PNC) was difficult to deal with but cordial and professional every time that I called. They are very slow. If you have an E*TRADE second mortgage hanging off your first plan on offering no less than 10% at closing and made sure that all your “I”s are dotted and “t”s crossed. Be patient but keep on them. They would have you think that they are “indifferent” in terms of whether or no you are foreclosed on in terms of them getting their money but they are not. They know that if foreclosed on their chances of getting paid in full drop a lot. Gently remind them that a lien on a house that is upside down is worse than working out a deal with you after you sell the house and no longer have costs associated with the house.
Hope someone can help me with this one. We own a home in California with a 1st (735K) and 2nd (49K) mortgage-- BOTH loans are with Etrade. My husband and I fell on hard financial times about a year ago and we requested a loan modification from Etrade several times. Despite our 35% reduction in income, we were denied 4 times because of their ridiculous and unreasonable guidelines. They noted that were denied because our "income was sufficient to cover the mortgage", when it clearly wasn't. Now we want to short sell the home and I'm beginning to worry that they will not approve the short sale taking the position that we do not have a legitimate hardship. I'm also wondering if having both loans with Etrade will give us more leverage or if it will complicate the short sale bank approval process even more. Has anyone had any problems with etrade approval on a 1st and a 2nd mortgage with Etrade? Our attorney will be guiding us through this but any thoughts or insight would be helpful. Thanks!
Hi Danielle,
You can read more about ETrade short sales in our short sale report. http://www.foreclosureradar.com/short-sale-report. Even though both loans are with the same lender they are likely services by different departments so you would need to submit short sale packages to both. If you are more than 6 months delinquent on the 2nd it may have already been transferred to a recovery/collections department and you will be negotiating with them. I have heard from several people that ETrade has been very difficult to deal with on short sale negotiations but we all know that things can change from one day to the next. We have also heard that ETrade 2nds will typically require at least some seller contribution. It sounds like you have done the right thing in hiring someone to help you. Unfortunately you should be prepared for additional frustration.
Thank you for the tip Michelle. I'm going to read it now!
Hi Danielle,
There is a new program called HAFA that began mid year orchestrated bo the Obama Administration. It only applies to homeowners who live in their home, not investment properties, and not all lenders are participating so I would call Etrade and ask them if they signed up. Again, the program is called HAFA. Once a home owner is denied a loan modification, they can use all of the same paperwork to initiate a short sale. They also give the bank and home owner a financial incentive to complete the process of a short sale. I don't know if you are looking for a Realtor to help you navigate through the process, but if you are, and are interested in interviewing me, I'm in Northern Ca. in the east bay. Thanks. Elisa
Hi Danielle
I had a 2nd with E*TRADE that was serviced through PNC/CLC (See above) I too had to do a short sale that started in March of 09 we will close at montrhs end. My sale was long because of a host of reasons not all associated with E*TRADE. I will be willing to bet that E*TRADE will accept a short on your house. I'm not a Real-Estate agent but I know how these sales work now and the interplay with the banks. Forclosure is not a good option for anyone, the bank looses. Craft a good hardship (See on line for examples, back up your hardship with provable facts, however I never had to provid any hard evidence) letter and have all the documents ready to fly, eveything that you would need in a re-fi or mortgage. Make sure that you have a real-Estate agent who can prove that he or she has done short sales in general and has worked with E*TRADE in particular, thats key. Holding buyers is another sticking point if the sale drags out so you might want to line up other prospects. Be sure to get contact numbers at the bank who holds ytour notes so you can stay on top of things, missed BPOs and paper work requests from the bank will slow things down. I did a lot of calling and pushing with my sale and you might have to as well. E*TRADE will require something from you to reasle the 2nd mortgage given that in Cal banks can't seek deficientcies as i recall. The % of the 2nd that they will want at closing seems to be between 10 - 14% based on my experiance. Short sale is a long and frustrating deal that tests you at nearly every level. Everyone seesm to throw up hudles while moving the goal posts so be very patient and stay on top of things. Good luck
Well said Bruce!! It looks like you are one of the real professionals out there. Thanks for taking the time to share.
i too was trying to do a short sale with etrade holding a second mortgage gmac had first when I contaced gmac they told be a short sale would be hard because etrade is hard to deal with.ending up with gmac needing 70% in order to get etade to release ,nosale house isnt worth it plus I still have a payment with etrade .well let them
foreclose the lawyer says
Thank your for the kind words Michelle. I had to do and say something to help others stay positive and upbeat in this process. You have to given the long, stressful and disappointing journey this process can take you on. Please know that my sale is in Massachusetts and the first mortgage is with Bank of America which was originated by Countrywide. We all know how BofA “bought” Countrywide. As I said, my 2nd is with E*TRADE then in 2008 during the banking collapse, PNC/CLC forged an agreement with E*TRADE to service all their HELOCs, Lines and 2nds. E*TRADE wrote thousands. I have to admit that BofA has been excellent to deal with once they got their Equator system in place, before that it was a night mare. BofA gave us several extensions and were by in large very responsive. PNC/CLC was pretty good too I have to say, or that was my experience. PNC/CLC did grant several extensions and were pretty easy to get through to on the phone. Stay calm and professional when dealing with these folks, you do not know who you’re speaking with. Some sticking points are the 3 BPOs (Brokers Appraisal) that each note holder requires before they approve the sale. You have to get the first not holder to do their 3 BPOs and then wait for approval and then if that approval comes through you have to let the 2nd note holder that the first holder accepted the sale and that you are asking the 2nd to release the lien, now they need at least 2 BPOs of their own. Then if too much time elapses each bank has to do another BPO. It can be difficult to get them to all line up. You will be negotiating with the 2nd lien holder more than the first, I’ll guarantee that. Even though in some states banks can’t seek deficiencies, 2nd holders do everything that they can to minimize their losses. The 2nd lien holder’s one and only trump card is the knowledge that most Home Owners do not want a foreclosure on their credit report – period. That’s all they have to hold onto. The 2nd lien holder, depending on the state know that something is better than nothing and if very little is offered they feel that they will just grand stand until they get a better offer. Please note that there is absoluty no incentive for 2nds to release a lien if you are current and paying on the 2nd mortgage. Also note that I have it first hand that in some cases its easer to deal with the collections group of the 2nd lien holder than the service group. I have heard where by the strategy was in fact to let the second go to a collection agency and deal with them. I didn’t have to go there and I have a hard time with it, would not recommend it either and I’m not sure why. During this whole process you have to hold onto the buyers, if they drop out you have to start the whole process all over again.
If anyone needs help, advice or guidance, I’ll try to help if you like.
I have a 1st lien with BofA (originated with countrywide) and a second HELOC with Etrade for 60k for a property in AZ. After 12 months BofA finally agreed to accept my short sale and for the last 6 weeks I have been going back and forth with Etrade to accept 9.4 percent of the loan for settlement of the deficiency and release of the deed. Today they countered with 14 percent of the loan (10k) just for the release of the deed. Alicia Smith insists that Etrade will not even consider releasing the deficiency for under 30%. I told them I have another foreclosure this year, lost my job and am disabled after a major car accident and they do not care. They are willing to let me foreclose and bankrupt as "they have already charged off the loan". I am not sure what to do at this point. I do not want to chance them coming after me for the deficiency as I understand they can in AZ for HELOCs but why give them even 10k if I still owe them the entire 60k after. To top all this off BofA foreclosed on a property earlier this year when I had a cash offer on a condo within market value and an extension in place on the foreclosure. We sent emails all the way up and they would not reverse it, claiming the investor preferred a foreclosure.... I have tried everything not to foreclose on these homes that have depreciated over 60% but over a year of effort has done only harm to my credit and wasted endless amounts of hours. I have contacted Alicia Smiths manager and that hasn't helped either. Any suggestions would be greatly appreciated. Has anyone settled a deficiency for les than 30% with Etrade? Is there a name and number to a very high official at PNC that I can contact?
Have 1st with Bo f A and 2nd with Wells (investor is Etrade) B of A approved short sale with 6% commission but Wells said Etrade will only aloow 5% . Need to know if anyone has gotten approval at 6% with Etrade as investor
Have a first with Wells, and second with E-Trade that I was told was charged off to NCB collection's. First was told by NCB, E-trade may take our file back. Then was told NCB has worked with E-trade many times and they want at least 10% and that Realtors commission can not be any more then what E-trade is receiving. Based off this information we resent the HUD showing exactly what were were told and now are told E-trade wants 30%, really??? I have tried to speak with E-trade and PNC to get a payoff for 2 months, was told to get that from the collection company. The collection company keeps telling me they can't release that information because E-trade will not let them. PNC and E-trade have stated that the loan has been charged off or sold to this collection company and the decision is theirs on the payoff and approval. Well whoever makes the decision, no one will win. Our foreclosure date is next week. E-trade is forcing many sellers into bankruptcy.
We are in a nightmare situation and due to PNC not cooperating, just lost our patient buyers of 4 months. They demanded $17K (10% of the $172 2nd they hold) and would not agree to anything less than 60% of the balance. We proposed a $45K payment (over time) and that with the $17K at closing would net them $62K. They declined. We refused to sign their deficiency judgment. My thinking is if we are going to be forced into BK anyway, why give them a dime? Just let the house foreclose. Then, rather than getting $62K, they can having nothing. I'm just bewildered that they would rather take nothing than what I thought was a very generous attempt on our part considering we are out of work, etc. Very frustrating. So, guess we're headed to foreclosure. I don't have the energy to start over with another buyer just to have PNC say no again.
We no have a second offer. We have submitted letters of distress to many elected officials and the office of the treasurer in DC - we are going all the way to the top and we are making it very clear we have tried to negotiate a settlement; one that we can realistically repay. NOW, we are getting letters from PNC/eTrade telling us to resubmit our papers and cross out the portion regarding the deficiency judgment and we'll go from there. They ARE crazy. My hunch is they had some response and pressure from our letters, but in the end they will still not agree to anything. And we are very clear in that we will not agree to a deficiency judgment of $150K so that we can live in total hell for the next 20 years with daily calls from creditors and wage garnishments. I will repost with an update of what happens.
Wells Fargo was 1st and E-Trade was second. The balance with E-Trade was $75000. WF agreed to pay $10,000 to 2nd and E-Trade said okay in a couple of weeks. I expected to have more difficult negotiation, but it was very smooth and quick. Both were purcahse money.
We are trying to conclude a short-sale. The 1st is $575K with WF. The 2nd is $260K with E*Trade. The accepted short-sale offer, subject to lender approval, is $432,500. This is less than the amount of the 1st. WF has agreed to the deal, and is allowing $13,000 to "leak" to E*Trade for their release. We offered E*TRade the $13K as both "payment in full, and payment for removal", i.e., they agree to remove all data previously submitted to the credit bureaus concerning this loan. After much back and forth via email, PNC o.b.o. E*Trade proposed $23,000 for "payment in full and payment for removal". We accepted. They then said that the "investor" had not approved the offer. We said that was PNC's problem as the offer was made and accepted in writing and = a binding contract. The PNC person refuses to honor the agreement, refuses to let us speak with their supervisor and refuses to let our attorney speak with their attorney. Our lawyer says the agreement is enforceable. Q1: Does anyone have the name/ contact info for the appropriate legal affairs person at either PNC or E*Trade? Does anyone know which government agencies regulate E*Trade and/or PNC? We are ready to elevate this up and out of the hands of the current PNC contact who is obviously an inexperienced person.
Update: E-Trade countered $26,900 for release, but not removal. We have now sued E-Trade to enforce the $23,000 deal for release and removal, which they previously agreed to in an email exchange, but later refused to close.; and, we are simultaneously. We are also presenting them with a settlement offer of $26,900 for release and removal. In other words, their $ amount, our terms. It's in the legal department, and we are waiting to hear their response. Meanwhile, WF has issued an NOD, adding time pressure. What a stupid process.
Has anyone been able to get E-Loan, or PNC or CLC yo remove negative credit items, like 30-Day Lates, etc. from their credit report? They are refusing to consider any settlement that requires or results in removal of previously reported negative information...
Having problems with etrade also!
E trade is the investor on my second and the first has approved the HAFA program allowing 6000 dollars to a 38,000 dollar second. Etrade says they will accept 6317 and not waive deficiency but you cannot go HAFA unless they waive the deficiency. Very frustrating as my realtor says there is nothing to do and you will face foreclosure if they do not waive the deficiency. According to what I am hearing 6000 is a lot of money for the second to get on such a small loan amount on the second and they still wont agree.
Anyone dealing with ETrade on a modification or shortsale who doesn't have a second? i only have a first for 700.000 and would like to short-sale. Anyone with any luck?? Thanks
I have been dealing with Etrade for over 5 years on Modifications and Short Sale settlements has a Realtor. I have had great success with getting them approved. Please feel to cal my office. We are loctated in San Diego, CA
Marco, Im in San Diego too and having trouble with ETRADE, how do I get in touch with you?
please forward the phone number of Marco. I have a situation with etrade.
thanks
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Please put me in touch with Marco. We can not reach Etrade on our transaction...
We have a 2nd with etrade/clc...we have been trying to do a short sale for about 6 months. The first (wells fargo) offered 10% to etrade to sign off (approx 15k) and we put in an additional 2k so the sale would go through. CLC said no. They said they would only entertain offers "considerably north of 30K." You would think they would want something instead of nothing, which is what they are going to get now that i'm gonna file CH 7...too bad CLC
if anyone know the number to Marco forward the phone number to me .
thanks
I tried to negotiable a settlement with etrade/ CLC/ PNC. I owe $94,00 on the first with Aurora Bank (trying to modify the first). Etrade is a 2nd loan. The balance is about $32,500. I offered them $2,370. It took them 60 days and alot of personal info but they countered my offer to $7,970. They stated that after the funds are received, I will not be responsible for any remaining balance on the loan but I will receive a 1099 C for tax purposes. This account will be reported to the credit bureau as settled for less than full balance.
What they did not state is will they release the lien from the property.
I am going to counter that offer. They gave me 30 days to respond.
Any suggestions?
Hi Tim,
Typically the account settlement means they would reconvey the Deed of Trust. You are wise to ask for that in writing. Look for something that says that when the account is settled they will release the lien and record a Full Reconveyance. Although you would have paperwork that the account was settled this will insure that there are no clouds on title.
We have now filed CH7. PNC caused 4 different buyers in our short sale to walk, and would not take anything we offered. So, now they will get -0-. At this point, it's all just a relief to be done with it. Our 1st lender has still not foreclosed, and continues to let the house "try" to sell. If PNC refuses to cooperate now, I think we're dealing with a pretty unethical set of circumstances and it's time to sue.
Hi Sue,
I only hope you are still living in the house and riding it out. I am so happy that you have taken care of yourself and can now focus on rebuilding and recovering from this situation. Many folks do not realize that once they miss 5 or more payments on a second the file is typically sent to a collection agency or sold on the scratch and dent market. These folks only benefit if they collect something and usually do not cooperate with short sales. Now that you have filed BK and they see that they are going to get nothing they may be willing to take the 1-3,000 dollars that the lender on a first is usually willing to pay a second. I have often said that there should be some clearly defined rules on short sales. Unfortunately it is a "try and see" experience.
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