Complaint: Toxic Assets – formerly National City now PNC’s problem (Letter to PNC executives) To Whom it May Concern: I understand that PNC has taken charge of mitigating the losses on a bulk of National Citys toxic assets. I can appreciate the enormous task PNC has in front of them in trying to squeeze water out of a rock, so to speak, in regards to collecting monies from upside-down loans. I currently represent borrowers in a short-sale where PNC is servicing the 2nd lien (see subject line loan number). The debt is 100% undersecured and the 1st mortgage holder, Citimortgage has approved the short-sale and is taking a severe hit on their principal. In their approval, Citimortgage has allowed the junior lien holder in this case to receive $3,000 to release the lien to close escrow. The borrowers filed a chapter 7 bankruptcy and have received a discharge order from the Federal Bankruptcy Court liquidating all unsecured debt. The PNC 2nd debt is included in that discharge. I have been helping borrowers and cooperative lenders alike mitigate mortgage debt losses since the mid-1990s. So you dont have to be a rocket scientist to figure out that, in this case, PNC, junior lien holder, can get $3,000 or zero from this opportunity. PNC is barred by Court order from collecting additional sums from borrowers themselves. Im not an accountant, but in my book, $3,000 is a lot better than $0.00. I just received a call from a man named Desi, who is a negotiator with PNC, and he countered the Citimortgages offer of $3,000 with $47,775.00 to settle the debt. On one hand, I appreciate the attempt to maximize the return of lost monies, but on the other hand, the figure is so far outside of reality that Its hard not to be insulted because this counter-offer wastes everyones time and resources; i.e. Citimortgage HR time and resources to process their short-sale approval, I marketed the home and received an offer from another agent who represents the buyer and in turn has pre-qualified the prospect and showed him the house. This is all done in a fair dealing spirit in the hopes that everyone involved in the transaction would be realistic in solving a problem and get it done. By the counter offer received, it is now clear that PNC does not have any concern with dealing fairly and they could care less if they sabotage short-sales and bring to naught all the work Realtors put in to try to help them mitigate losses in their toxic assets. This was my first taste of PNC in 21 years in the business. I personally have 4 other clients who called me with PNC junior loans (formerly National City) who want me to help them with short-selling their homes. I have to tell them that PNC does not deal fairly in this arena so their only remedy is to stay in the home as long as possible and let the senior foreclose on them and negotiate a hefty cash for keys in lieu of eviction. This is a shame since most of the homeowners I deal with, want to do the right thing, in spite of their hardship circumstances, and manage their debt to a final resolution. It is also my duty as a Realtor to warn other agents across the country by publishing this letter in popular real estate internet blogs/rip-off sites. I have to tell them that if they have a PNC junior lien and are attempting a short-sale, they should stop now and head the other way because PNC plays hard ball! I wish it were different, but it is clear to me that PNC doesnt consider any other parties in short-sale negotiations, only themselves. Unless PNC changes their dealing strategies, the PNC name could be associated with the likes of other ruthless debt buyers (collection companies) who have irreparably soiled their reputations in the market place.
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