Has anyone had any experience with Penny Mac bank? We had a short sale approved, in writing, as of November 21, 2014. Letter said the sale had to close by December 31, 2014. Now, on December 16, 2014, the "audit" department wants the seller's most recent pay stubs to determine if a "cash contribution" will be needed from the seller. Is there any recourse? Any suggestions. Thanks.
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Perhaps the "audit" department caught your negotiator sleeping at the switch. They are normally overwhelmed with paperwork. I'm just playing devil's advocate here. Did you send this item in already? I'm just wondering if they missed this before or lost the submitted docs. They would need to have documentation of this step being addressed in the file to pass audit.
Go at it as a solution seeker, push for exactly why, and why now, but be understanding, too.
I've had one such similar situation pop into my head when I had an negotiator ask last minute, after all the seller docs were received, verified and accepted (but before the short sale approval letter came out) if the seller could make a financial contribution. It was strongly worded and sounded very ominous! It was a bit of an amusing request to me though, since the documentation was all right there showing an unemployed (and just out of unemployment compensation checks!), living-with-family, nearly-penniless borrower. The negotiator's verbal response to me was an empathetic, "I'm required to ask." We both laughed. No contribution was required, but it was unnerving.
Has their financial situation really changed that much since 11/21? What should have been acceptable before should not be any different now. If they were to kill it based on the new information, which would hopefully be really no different than from before the short sale approval letter, then I would really be thinking they (the negotiator and QC dept.) missed their checkpoint when they should have addressed this issue before and never should have sent out the approval letter as it was written.
Hoping this resolves quickly for you guys and the deal stays together!!
Sorry to hear this Rebecca but, it happens however, not all is lost. If the loan is FHA secured, call the national servicing center and file a complaint. If it's not a FHA / HUD secured loan, try filing a complaint with the FTC (Federal Trade Commission). Finally, you can always file a complaint with the CFPB, the Consumer Financial Protection Board, I have had two complaints through them and they worked out to my client's satisfaction. Granted, it's a lot of additional work but, at least you can say you tried.
Nope. I had this happen w PHH a couple of years ago. Last minute as well. Required cash contribution. Killed the deal
Thanks, Cece.