When everyone talks about the great short sale deals I don’t think they have frequented the 21st Century Mortgage area of the business. If this business has gotten any better in some places it’s definitely gotten worse in others. Strange as it may seen we have come across some awkward negotiators but 21st Century Mortgage takes the cake for craziest guidelines. You’d see typically that most lenders want to get deals closed and though they are prepared to lose some they are not prepared to lose them all.
In steps 21st Century Mortgage, seemingly one of the smallest players in the game, they have a total of 5-10 people in their entire short sale department. In their eyes their response is that they don’t do short sales. In fact the only reason that this department exists is because 21st Century Mortgage purchased a portfolio from the now defunct Tailor bean whitaker and they were one of the only investors, if not the only investor that they service that allows for short sales.
Now here comes the crazy. In order for 21st century to accept your short sale, if they hold the second mortgage, is if they receive the same percentage as the first mortgage (Sr. Lien) is receiving. So if the first mortgage receives 80% of the debt owed to them (which it is not a rarity for the first mortgage to get a majority of it’s balance and for the second mortgage to be completely upside down/under water) then 21st Century Mortgage feels that they should receive the same. This is not too far off from PNC Bank’s guidelines of trying to get 60% of the debt but that never changes and is a story for another day.
It is likely the they will not be closing many short sales with this type of policy especially when it is typical that first mortgages only pay 3K to upside down seconds. Also, even per HAFA Guidelines they would only get 6% of their balance if they choose to participate.
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