Why is Countrywide claiming to 'lose' paperwork on short sale?

Question

My friend is trying to buy a home in Florida from some people trying to sell on a short sale. Countrywide is claiming that they failed to process her paperwork on the sale and that it will take months to redo. why is this happening?

Answer 1

Countrywide is in the middle of being acquired by Bank of America, and there are endless staffing, office, and procedural changes occurring there.  It's not necessarily right, but they are in the midst of a huge changeover right now.

Answer 2

Countrywide is a horrible company in general. I’m not just talking about recent allegations. I know several agents who, if a buyer comes to them with a Countrywide approval, will only work with the client if they a back-up approval from another source because Countrywide is so good a s******g up.

Answer 3

Could be they don't want to make the loan, or with the troubles they have been having, maybe then simple can't make the loan.  I would be very leery of this situation.

Answer 4

because they failed to process the paperwork properly... don't know  just a guess

Answer 5

Loss mitigation departments at major lenders are under a huge workload and they are understaffed.

Countrywide is "not making the loan" on this home, they are allowing the sale of the house for less than is owed to them.  There is a lot of paperwork on a shortsale.  It's not as clean cut as those selling programs on TV want you to believe.

While your friend might be frustrated you do not know that Countrywide's claim is a false claim.  Short sales take months to complete.  I'm currently in the middle of one myself.  Your friend needs to know this and either relax and wait for a bargain or move on and pay full price.