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Rachel Trimble
  • San Antonio, TX
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Best chances of SS-hand holding w/ owner-dealing w bank :/

Rachel Trimble
  • San Antonio, TX
Posted Apr 17 2016, 15:19

I need help. I came across an owner who has abandoned the subject property and hasn't paid his mortgage since 2009. He told me he just wants out of it, wants nothing to do with it, wants to move on. 

Fast forward about 20 conversations with about 20 individuals at Citi Bank that have been a nightmare to communicate with...to today. The owner has given me authorization on his account so that I can deal directly with Citi. They said a short sale is best option and will have me meet with a BPOA at the property soon. They've slowly sent me the required docs to get the short sale approved, and I will work with the owner to hold his hand through all of this.  hey are getting a BPO (I'll be meeting the BPOA at property to escort them into the house through the only window that isn't boarded up) and assigning the short sale to an agent (I assume this will happen AFTER I provide all paperwork etc. and this gets approved as a short sale)??? . I plan on making the work easy for the BPOA by running all the comps, taking pictures, etc. basically doing the work for them.

 I keep hearing that NET is the most important to a bank, but I can't imagine how they could possibly net. It's also a strange scenario as the bank didn't initiate the short sale or foreclosure for that matter. I approached them. Do you have any tips at how to go about this? Any tips on how to get ahead of the curve here? And influence the path this takes? I am lost...need help navigating!

Scenario:

-Owner abandoned house in 2009 and hasn't paid mortgage since. 

House is destroyed, all but falling over. Citi told me the exterior was evaluated at between $40k-$45k. (this may be advantageous info. as the interior is 10x worse than outside). I wouldn't say it's worth even close to the $41 that he owes or the $40-$45k exterior eval amount. 

-Owes $41k in remaining principal due and a total of $89,908 for all the past interest, unpaid taxes, etc. due. 

I could use some advice on the paperwork: One of the forms is a "Uniform Borrower Assistance Form". To fill this out in my advantage, what should I select for the "I want to" line item? The options are: a. Keep the property (no, owner wants nothing to do w/ it),

b. Vacate the property (owner has already done this, it's been abandoned for 5 + years)

c. Sell the property (he wants to walk away. so what's the difference between vacate and sell?)

d. Undecided

Another question on the Hardship Affidavit-is there one hardship that is the best to check, making this any easier? I'm leaning towards the "reduction in income" selection as it's true and it doesn't require hardship documentation....

Is there high risk that this won't be approved for a short sale because of the condition of the house? After reading some notes here on BP I'm starting to wonder if this is going to quickly turn onto a foreclosure. Are there reasons why banks would go for foreclosure over short sale in cases like this? I just don't want to continue spending so much time here, only for Citi to take it to auction.

As you can see- I need all the help I can get here... Thank you so much in advance to anyone who is willing to reply. :) 

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