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Friday, December 28, 2012

Short Sales just got harder because of new lender tactics

 
Short Sales just got harder because of new lender tactics!!!

Short Sale Process Complicated by "Loan Selling"
Hello Agents
Your job just got harder. A lot harder!!!!
The Real Estate Marketing Insider (La Jolla, CA.) has chronicled how the largest banks (B of A, Citi and Chase) are attempting to wiggle out of the National Mortgage Settlement that goes into affect Jan 1, 2013.
The nation’s largest banks are rapidly transferring delinquent mortgages to “mortgage servicers” resulting in the killing/ delaying current short sale transactions at the “11th hour”.
Usually the borrower is notified (via mail) their loan will be sold (usually within two weeks).
Editor’s note:As part of the National Mortgage Settlement banks are required to disclose impending servicing changes ONLY IF the owner makes a request(s)in writing).
Therefore it will be critical to regularly (approx. every 15-30 days) request
 
Agents (and the buyer’s loan officer) on both sides of the transaction must rush to close OR wait weeks until the change occurs and start the process from scratch with the new servicer.
The fallout can be catastrophic to the short sellers, who are often counting on cash incentives to move.
Loss of cash incentives will certainly result in many short sellers filing BK (delaying the sale for months) and even vandalizing/stripping the home.
Meanwhile, prospective buyers can lose patience with the transaction (hopefully not with their agent) or the terms of the sale can expire.

If a bank is not co–operative the seller can file a complaint with the Calif. Attorney Generals Office as a way of pressuring the lender to follow thru with the terms of the original agreement.
(Earlier this year it was California Attorney General Kamala Harris who held a hard line against banking lobbyists, forcing a more homeowner friendly settlement and reigning in abuses that have been commonplace from 2007-2011)
 
SO WHAT TO DO?:
Editor’s note:As part of the National Mortgage Settlement banks are required to disclose impending servicing changes ONLY IF the owner makes a request(s)in writing).
Therefore it will be critical to regularly (approx. every 15-30 days) request it.

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