To All Interested Parties:
I'm writing this letter in hopes that someone will hear and be moved to help this homeowner in any way they can. I have been working on this short-sale in San Clemente for the homeowner since February 25; the address of this property is. The owners could not afford their sub-prime loan anymore due to a loss of employment so they opted to short-sell. I think we all tend to agree that a short-sale is more positive for the lender (s), county tax collector, the community at large, not to mention the homeowner versus the homeowner walking away from the home.
The subject home in the center of this dialogue is now worth $430,000.00 per three appraisals, and the market is still falling. Countrywide is in first position with their trust deed (original principal was $519,200.00) and Wells Fargo is in second position (original principal was $129,000.00). Countrywide finally approved the short-sale after six months of work.in the terms of the short-sale agreement with Countrywide, Countrywide agreed to accept $396,420.03 as total proceeds, and that figure includes $3,000.00 for Wells Fargo to release their lien. Countrywide's total loss on the deal is approximately $122,780.00 and Wells Fargo's loss is around $126,000.00. The dollar losses in today's market are truly an unfortunate reality.
Terri Jeffries is the rep I'm dealing with at Wells Fargo Home Equity, and when she saw the $3,000.00 Countrywide was offering Wells Fargo, she laughed and said that she couldn't even bring this offer to management and she would just as sure lose the deal and gain her employer-investor zero proceeds than make $3,000.00 on the sale. After that conversation, I went to Countrywide to find out if they would give Wells Fargo any more concessionary monies and they told me that they could not give Wells Fargo more money due to the enormity of their losses and if they went to Trustee sale they wouldn't have to give Wells Fargo anything. I'm sure that this crazy loop exists where the positions are reversed, you know the scenario, where in the case of another foreclosure property, Wells Fargo is in first position and Countrywide is in second position and the same quandary exists as it does in this case. It is also true that what goes around, comes around and I have a dream that one day we can eliminate this vindictive cycle powered by ego and adopt a spirit of collaboration that ends in the higher good achieved.
The current problem is that Ms. Jeffries of Wells Fargo will not call me back after several calls to her office. I'm trying to convey the message to Wells Fargo that the homeowners have saved up $2,000.00 and want to increase Wells Fargo's sum to $5,000.00 to release their lien and allow the short-sale to close. The homeowners and myself have cooperated and worked hard to mitigate the losses as much as possible to the existing lien holders on this matter, it is my hope and prayer that Wells Fargo will work at this too.
There is an old adage, that A bird in the hand is worth two in the bush.in this case of the offer to Wells Fargo's investors, it is more compellingly accurate to say, that a bird in the hand ($5,000) is worth more than no birds at all! ($0.00) Perhaps no one can force Wells Fargo to accept $5,000.00 instead of $0.00, but can someone at Wells Fargo please seriously consider this offer in compromise and at the very least call me back and let me and my clients (the homeowners) know?
Thank you for reading and helping and doing what you can to help in this sub-prime crisis,
Melonic
Corona, California
U.S.A.
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