Mortgage Hardball: Day 2
UPDATE ON MORTGAGE HARDBALL
Kim and Scott Fisher are watching the clock tick down. As I blogged yesterday, they have an offer on their home for an amount which will allow them to pay off their first mortgage to Washington Mutual and a second mortgage to Wells Fargo. But the Fishers do not have enough to cover $35,000 in closing costs, and they say lenders won't help. Plus, they say WaMu has moved to foreclose on the home. What a mess.
CNBC Special Report:
Escrow is scheduled to close today. It won't close, though, if the Fishers can't come up with the $35,000, or if the banks don't agree to eat those costs.
Both lenders returned my calls and told me they were looking into it.
Wells Fargo, as second in line, has the most to lose if this sale falls through. Kim Fisher says Wells, after first saying no dice, is more helpful today. A deal to waive fees may be "do-able", says Kim, though nothing is confirmed.
Her realtor, Billy Wynn, warns that if the buyers' loan isn't funded by the close of business Monday, the buyers will lose their rate lock "and probably their loan."
The offer is to buy the home for $1.13 million. Realtor Wynn says if the deal falls through and the house goes into foreclosure, it'll be off the market for a time and will probably eventually sell for less than $1 million. WaMu will get its money back, but he says Wells Fargo will be out probably $100,000+, which is more than the $35,000 the Fishers can't cover. "Go figure," Wynn says.
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