Short Sale Saga, So Suspicous (Updated 3/3/10)

By | October 1, 2009

——————————Update 3/3/2010—————————————–

After not hearing from them for months, Greentree is still trying to collect, although they know California law is on my side according to the rep I spoke to on the phone. I may eventually have to have my lawyer send them a Cease and Desist letter, then fight them in court. They claim they can take up to 11 years to send a 1099 form and that this is up to the lender.  Tom’s comment makes sense. They may want to keep the debt open so they can use it for the profit scheme he describes.  Some feds should investigate them.

——————————Update 10/6/2009—————————————–

I am happy to report that I am truly shocked. Green Tree has accepted the short payoff of $3,000 on my $60,000 HELOC (including the $5,000 or so in fees that they tacked on according to a letter they sent…) Wow.

Meanwhile, a foreclosure sale date has been set as Oct 22.  Will the short sale beat the foreclosure and cancel it out? My agent seems confident that it will.

—————————— Update 10/2/2009 ————————————

CollectionA manager at Green Tree is supposedly going to get back to my Real Estate Agent on Tuesday about accepting the short payoff for my $60,000 HELOC.  (Update: He did!)

My research shows that Green Tree is much hated on the net.

Green Tree debt collectors supposedly killed one man while trying to get money from him. Also, one Real Estate Agent in Nevada says that if Green Tree (who she calls “a division of Bank of America” ) owns your loan, then you can forget about the short sale.

Let Green Tree try something. With the case of Mooney vs Green Tree Servicing, LLC as precedent, my lawyer and I will be happy to collect $40,000 in punitive damages from them if they call my friends, co-workers or relatives, address me in a harassing manner, threaten to “go public” and publish my debt in the local paper.

“Green Tree did not retreat or relent even when the illegality of its acts was exposed. “

If Green Tree didn’t learn from paying $40,000, perhaps the next judge will grant me the $500,000 in damages that Mooney requested but the first judge rejected due to Green Tree not showing a pattern of this abuse with multiple people.

My mood is grim. I feel I’m about to do battle. I will be truly shocked if my Short Sale goes through.

I am a scrupulous person who is a victim of a predatory lender who lied to me in order to sell me an adjustable rate mortgage when I requested a 30 year fixed rate.

——————————————————— Original post ———————————————–

I bought a home at the height of the market and got talked into an adjustable rate mortgage which I could not afford once it adjusted. Since my home’s value fell dramatically, I choose to let it go. A short sale is preferable to a foreclosure in my case, but today on the supposed close of escrow, I’m still the owner. Bank of America has pulled a couple of fast ones and I’d like others going through this to be aware of these snags:

– If the Bank makes an offer and the buyer accepts, the Buyer’s bank still has to send an appraiser.

– If the buyer’s bank’s appraisal comes in less than the seller’s banks Buyer’s Price Opinion (BPO), then the seller’s Bank will have to go back to the investors to get approval.

– Even after that approval was written, my short sale negotiator for B of A wrote the contract up for $500 less, shorting the buyer’s bank by $500. Not acceptable, so they have to go back to the Investors again!

– Another snag (game by B of A?) I have a first and second mortgage.  The short sale was approved, but in the middle of that, B of A sold the 2nd loan to another company, Green Tree. Green Tree did not have records of owning the 2nd loan due, supposedly, to a delay in the paper work, so they could not approve the short pay off.  Now that they finally do acknowledge holding the loan, they are requesting the entire Short Sale package again.  They supposedly had to accept all conditions in place when they accepted the loan, but this is not what they are doing.

Today, I should no longer own my sinking ship of a home. But I still do.

My suspicion is that the bank makes more in fees from a foreclosure so they are doing everything they can to make the short sale fail. Another part of this game is that I’m still responsible for the HOA dues of around $250/month.

9 thoughts on “Short Sale Saga, So Suspicous (Updated 3/3/10)

  1. Cole

    What do you think of that lady and here protest against the bank? I can’t remember her name, but it was on Fox News yesterday or the day before. Sorry for the skimpy details.

  2. Tom

    greentree is a collection company extorting money on short sales it very sad. They buy 2nd that are in default for pennies on the dollar and use that asset to make money. They pay $360 for a $36,000 2nd form Indy Mac and they hold out for 5% of the sale price on a short sale or $9,500. The home get foreclosed they go for the deficiency if they can in that state. The Lender will give them maybe $3,600 They try to get 1% form the agent an additional $1,900 and the government will give them $3,500 from the HAPA program. You get $9,000 on a $360 investment. 2500% Also it a security so they can borrow against it. you can borrow 10 times your assets as a bank form the fed in fed funds at near 0% interest and loan it out at even 6% is another $1,800 a month. That is how they make money on non-proforing assets. So if you have a $360,000 note a security and hte home is worth $200,000 you still have a security for $360,000 and you and horrow 3,600.000 in funds @0% form the fed. You make 5.5% interest on that in a year you made $196,000 in interest on that security in your book. If you foreclose you have a loss of the security the whole time your selling it because you dont have the note in your assets you own the home and you have a end loss of $160,000 that come off your assets. Now do you see the almost Ponzi scheme game banks get to play. salt lake homes for sale

  3. Matt Kuchar

    I am in the process of trying to get a short sale approval from Greentree where they hold the second mortgage. They will get nothing if it goes to foreclosure but they are holding the process hostage for a 1099 for 2008 taxes where the seller claimed $7 on their taxes. It is the most ridiculous and maddening thing I have experienced doing short sales in Denver. They must be complete idiots. Somebody is asleep at the wheel for sure. If I were a stockholder I’d be furious that they are not acting on my behalf.

  4. Jim Swanson

    I am working on a GreenTree second in a short sale. The first is B of A. GreenTree says they will not even begin negotiating until the borrower starts making full monthly payments. Of course, the borrower cannot make these payment. He lost his job and tennants and is living off savings which are fast dwindling.

    So, I am stuck. Of course GreenTree will lose everything if the property is foreclosed upon. Has anyone had an experience with GreenTree that might help me negotiate this?

      1. Jim Swanson

        We ended up losing the deal and the property is back on the market. I was hoping that G.T. would eventually come to their senses and make a deal, but, based on what I’ve read here, it doesn’t look good.

        The sticking point, at the end of the day, was they insisted on 5% of the proceeds (would have been $10,000). The first is held by B of A who only allows $3,000. The GT representative I initially talked to said they insisted upon the $10k. However, after a few months they sent it to their own collections department. Once in collections, I was told that due to it being in collections status, NOW they must insist on $10k and I could have gotten approval at $3k before it went to collecitons.

        If this sounds confusing, I think you got the point. They seemed to have lied from the start and I’m sure are still lying.

        I think the moral of the story is if someone has a GT second, referr it off to someone you don’t like. 😉

        1. Xeno Post author

          There are different people at GT who told me different things, conflicting things. People still may be able to get a deal if you get a GT manager and know what to say. I assume they look at each case on a case by case basis.

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