I have two interesting short sales in process with Countrywide. One is in Destin, Florida, the other, Navarre, Florida. In both of these cases, Countrywide is asking for the buyer's date of birth and home address. In one of the cases, they want the buyer's social security number.
Why does Countrywide want this new information? Apparently, in Short Sales where their loss is greater than $250,000, Countrywide told me they do a "background check" on the buyer to seemingly ensure he is not related to the seller. In one of these situations above, the buyer is refusing to provide his social security number. He feels that his privacy, identity and more would be at risk by divulging it. And it would be. I don't blame him. I have been trying to resolve this issue for three weeks. Finally, today, the negotiator called me and said the deal would be "off" if he didn't provide the information. I told her I needed more substantial explanation for the buyer, as I didn't want to waste the four months of time we already invested in the transaction. She put her team leader on the phone. He said "We do not need the social security number, just the date of birth." He also said that Countrywide wanted to ensure there was "No benefit to the seller through the buyer's purchase." When the negotiator got back on the phone, she seemed flustered. I told her I provided that information to her three weeks ago, and repeated it again. She said she "would call me right back". That was two hours ago.
In any event, if Countrywide is performing background checks, they ought to disclose that to the buyer. Anything less is a bit underhanded.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Search Destin Florida real estate and vicinity.
Short Sale Pre Foreclosure Help.
Specializing in real estate sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *Countrywide Wants Short Sale Buyers' Social Security Numbers* Contact Wendy Rulnick regarding Navarre Florida real estate and vicinity.
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Countrywide wants to do a "soft hit" on the buyer's credit. Having the social alone will not tell if they are related to the seller ... at all. It's more about capturing and controlling the finance. Don't be surprised if Countrywide contacts the client directly. How do I know? Because you posted on something I actually do for a living! (And I do have friends in high places at CW.) Keep up the great work!
Coldwell Banker does the same trick up here if I present an all cash buyer. They want to "pre-approve" a loan for the buyer just in case something falls through and they claim that they do this to protect the seller's interest. Some say this is reasonable, others say it is not - especially when the buyers can provide a balance sheet to the buyer's agent showing that they are able to pay cash. I've seen plenty a transaction blow up because CBRB wouldn't back down - now is that in the seller's best interest to loose the buyer because of their internal (greed) policy?
If BofA/Countrywide is so concerned with the short sale, why don't they just require documentation from the buyer at closing that they are not related to the seller?
Thanks for the post Wendy,
Interesting info, I don't think they are the only lender doing this now....many are asking to prequal the buyers themselves
Ken - Thanks for the enlightenment! Interesting...
Synergy - I think it is duplicitous... Countrywide should disclose... These buyers are getting a loan by the way. I was told the information is now being sent to the "Investigations Unit". Sounds like a department on "24".
Eric - I have seen this with a foreclosure company I work with. They claim, in writing, that they cross-check buyers against the international terror watch list. Seriously.
And, they want all buyers to get their mortgages through Countrywide or at least be prequalified with Countrywide for contracts on foreclosure properties too. What happened to the buyer's right to choose?
June - Countrywide is certainly not telling me they want the buyers to do a loan with them. In one of the cases, the buyer is paying cash. They just approved that deal about an hour ago.
Wendy, I have 4 short sales I'm working with CW right now. No matter how hard they try they will not be geting the buyers SSNs. That's complete foolishness.
Bryant- First of all, I am honored for you to comment on my blog! I agree, It's a devious practice. What next? Private detectives?
ummm good to know have not had this one come up - thanks for sharing
These - You're welcome.
That's scary. But your story does demonstrate that half the time people at the same company don't understand the policy. Thanks for sharing you experience and knowledge!
Thank you, Laura. It just proves again and again. never give up!
Crazy and crazy out. The banks are trying hard to get out of the mess they have created and just keep getting in deeper.
Gene- They're been processing this mess since April 17. Almost 5 months. What will they think of next?
This is outragious! A social security number is not something to be giving out! I had a weird one with Chase Home Finance. They wanted the seller to give them permission to talk to the buyer, the buyer's agent and the buyer's mortgage company. I told them only the buyer could give them that permission. He bluntly said he wanted to talk to them so he would know how much they are willing to give them to remove the second lein. I told him only the first could make that decision. He said I was perfectly correct and he was locking the file up in his desk and the request for removing the second was denied. Unbelievable! He was really pissy about it.
Evelyn- That is really strange with Chase. Sounds like that negotiator should find another line of work.
So when we write an offer on an reo they want you to go through with them on a loan, and now they want to hold up the process with the buyers ss# on a short sale. How crazy.