Attn All Short Sale Flippers - CW Approval Letters
FYI..........According to Countrywide, this is the verbage that will be on ALL approval letters regardless of the investor that ownes the note... this started approx 3 weeks ago.
"There are to be no transfers of property within 30 days of the closing of this transaction. Escrow instructions must contain a clause that if such a transaction takes place then the title/escrow company must notify (countrywide)."
Any way around this? Man they are making things more difficult and in the end will be losing more money.
>>Besides, what if another escrow/title was used to re sell? How can the escrow on the transaction agree to tell the lender about something they may never even know about?>>
My thoughts exactly!
Jim
Note that I am not a lawyer, so read with this in mind.
All I can figure is that the lender may have a claim of fraudulent conveyance. Lender may claim they did not receive "a reasonably equivalent value in exchange for the transfer." In the NC state statute wording, it is interesting that the following wording is used: "In determining intent under subdivision (a)(1)..." which is 39-23.4. Transfers fraudulent as to present and future creditors... "consideration may be given, among other factors, to whether... The value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred..."
http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_39/Article_3A.html
Not that this would ever happen. No one would ever deceive a lender on a loan application or a short sale.
I received this exact short sale approval today. I have Title working on it and has been extremely frustrating. The only think I can think of is closing with two title companies or closing in escrow and hold for 30 days. ANY input would be helpful because we are all going to get these soon.
SOLUTION (I think)
I called Countrywide and after I got done with the verification I told them that the buyer had a problem with not transferring the property because he had planned on doing it immediately. They said that is for their paperwork because they prepair and record their own reconveyances.
So, I told them that it was going to be transferred and to note it on the account and they will be notified. Then took down her name and ID and extention.
After that I sent an e-mail to title and told them that it was okay to notify countrywide. I am still thinking about moving A side closing to another title company separate from the B side closing.
Has something to do with their paperwork. Just got an e-mail from my Title company, they asked the same question and told them that it was going to transfer. I HAVE A CLEAR TO CLOSE!!!!! Hold your breath, cross you fingers and toes. We close Friday at noon. FYI this is my biggest short sale and the biggest spread ever.
Quote:
On 2009-03-03 17:06, ShortSaleSupport wrote:
SOLUTION (I think)
I called Countrywide and after I got done with the verification I told them that the buyer had a problem with not transferring the property because he had planned on doing it immediately. They said that is for their paperwork because they prepair and record their own reconveyances.
So, I told them that it was going to be transferred and to note it on the account and they will be notified. Then took down her name and ID and extention.
After that I sent an e-mail to title and told them that it was okay to notify countrywide. I am still thinking about moving A side closing to another title company separate from the B side closing.
Did your title company get the ok in writing?
ground breaking stuff here. Looks like your the guinea pig.
Okay I closed my deal today, no hitches at all. CW knew that it was going to be transfered also. Myself and my title company told them. It was a smooth closing, I almost took home 200K The wording that they use is no big deal.
Quote:
On 2009-02-11 16:09, jackbenimble wrote:
FYI..........According to Countrywide, this is the verbage that will be on ALL approval letters regardless of the investor that ownes the note... this started approx 3 weeks ago.
"There are to be no transfers of property within 30 days of the closing of this transaction. Escrow instructions must contain a clause that if such a transaction takes place then the title/escrow company must notify (countrywide)."
Cwide has come ou twith new language on their approvals replacing the 30 day rule. It now states that buyer, seller, and title compnay must not know of any other closing in conjunction with the first closing. Not sure how to get around that one but it is a huge pain in the butt. 2 title companies I assume.