Performing 2nd borrower short sale docs?

[Matt Devincenzo]

So a borrower of a performing 2nd just submitted a 'Request for Mortgage Adjustment' to FCI and requested a short sale. All that was provided was a written summary of expenses, and the last 30 days of pay stubs. FCI has requested what if any additional info I would require. My thoughts for additional info are:

Last mortgage statement

Last two bank statements

Some sort of 'short' sale amount being requested (calculation or understanding of what they are expecting)

The issue I see is I believe the borrower is trying to refi since his 3rd party contact is a loan underwriter. FCI requires I provide a calculation detailing my denial, which I would base upon the fact that a refi should drop his payment and help his overall finances. But to truly do that I need not only his current info but also to some degree to know what he needs for loan qualification. I'd ultimately prefer to not short anything, but if a small reduction would help him qualify I'm willing to be reasonable, I just want to be sure I don't give away the farm...any thoughts from those active in the space? 

[Andy Mirza]

@Matt Devincenzo We don't bother with getting additional information from the borrowers because it's irrelevant to our needs. We determine the amount that we can accept for a short payoff and that it's it. It's then up to the borrower to make it work.

My advice is to figure out how much your "small reduction" is and go with that number.

FCI wants to have acceptable language for their loan mod and short sale denials so that they're in compliance with the CFPB. Acceptable language is more what the banks use and everyone in the industry can understand. It's usually not the same as what investors think. They don't want to hear, "we just don't feel like giving this crappy borrower a loan mod."

They want to hear:

"The lender doesn't offer programs involving any principal reduction"

"The lender doesn't offer a program that will extend the term of the loan"

"The lender does not offer a program that will lower the P&I payment"

etc