It seems like every time that I list a PNC short sale in Sacramento, buyer's agents don't want to deal with it. They tell me to my face they won't work on a PNC short sale. That's a little bit disturbing. Because PNC approves short sales. Not all of them, and maybe not even 50% of them, but they do often get approved. Especially non-recourse PNC short sales in California.
See, with a non-recourse short sale, the bank, in second position, gets nothing in the event of foreclosure. Maybe the bank gets some money from the government for a foreclosure but not from the trustee or the first lender. I know that lawyers are concerned it's possible the FDIC is funding foreclosures for banks with taxpayer monies, but I have no idea if that's true. I do know that a PSA often make it very profitable for banks to go through foreclosure because PSAs make money either way.
Lately, though, I've been getting a very strange message from PNC on non-recourse seconds. I get the same email over and over. This is not a one-time occurrence. PNC wants to know if the sellers, the buyers or the agents would give them more money. PNC says it is not "rejecting" the short sale, even though it is. So, that tells me there are lawyers advising PNC to be careful with the language it uses so the government won't see that PNC is, indeed, rejecting short sales.
Because agents are broke, buyer's lenders won't let buyers contribute and, because of SB 458, it's against the law for the seller to contribute. Sellers with purchase money loans are not giving PNC any money and PNC knows it. There is always a very small fragmented chance that the first lender might cough up a little bit more than $6,000 or 6%, but it's not really very likely.
So, what is PNC's angle? Why is PNC rejecting these non-recourse short sales? Who is paying them?
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
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The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
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