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Who is not doing Short Shorts? Navy Federal CU?

January 15th, 2009 4:24 PM

Almost all lenders are working on short sales however Navy Federal Credit Union is not cooperating with owners and agents on "Short Sales". This is the consensus from many Realtors who are working on these transactions. Our recent experience confirmed this as they wanted the seller to pay back the entire note after the close. When we said no, the wanted an 80k note paid back after close of escrow. Of course this is ridiculous considering it was a purchase money loan and they would not get one dollar from the owners if it were to go to foreclosure. Additionally they had not filed a NOD after several months and need to wait at least 4 months before they could foreclose.

Posted by Steve Roque on January 15th, 2009 4:24 PMPost a Comment (1)

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NFCU was a third lien holder on my home since I had a home equity loan which I took out soon after my home purchase. Going through the short sale, Countrywide agreed to the short sale and NFCU insisted that I pay $2K up front to release the lien and an unsecured note would be required for the remaining balance. They were adamant on these terms. As they were holding up the short sale, I agreed and my new unsecured note payments are to start as of Feb 1. The short sale closed 12/15/08 and NFCU took my $2K payment but have not updated their system to show the "new" loan, thus, the original loan show a delinquency of over 30 days. They have an automatic "freeze" on my account daily and I was instructed to simply call and have the hold taken off when I needed. Upon calling today, I was informed they can no longer take off the holds as instructed by the president of NFCU and I am unable to access my account indefinitely. Make your sellers aware of the circumstances they may face once the short sale is completed and the after effects of NFCU's practices and policies.

Posted by robert patton on January 21st, 2009 6:18 PM