What? How can this be? Customer Service is there to help, right? Wrong! Let’s break it down: The Loan Servicer most likely does not actually own your loan, they are merely servicing your loan. Example of Loan servicers are BOA, Wells Fargo, Citi, Chase, Mr. Cooper,...
Month: November 2011
HUD can foreclose quickly and quietly under a little known Federal Act.
I recently had a short sale client with an FHA Reverse Mortgage. I view Reverse Mortgages as planned foreclosures. In a Reverse Mortgage the homeowner receives money from the lender for a certain period of time, depending upon how much equity they have in the...
Saying “NO” is Easier than saying “YES” in a Short Sale
The Loan Servicer (Wells Fargo, BOA, Mr. Cooper, Ocwen, SLS, SPS, DiTech, etc…) cannot get in trouble for declining a short sale. The Loan Servicer, however, can certainly get into what may become some rather expensive trouble for approving a short sale improperly....
What? Short sales, still? Yes, still.
I often hear “aren’t we done with short sales?” Well compared to 2011-2014, we are certainly seeing less than the numbers we experienced then. However, there will always be short sales because that has become one of the primary ways to handle loans in default among...
Now Fannie and Freddie are doing an About-Face on Valuation
As we have discussed previously, a short sale requires a market price offer based on the ‘sold comps’ of that neighborhood. The servicer usually sends a real estate agent to the property to do an interior BPO or an appraiser to do a full appraisal in order to...
WARNING: Fannie Mae and Freddie Mac are starting to ask for more.
In the last several months we have seen a pattern emerge; first with our Freddie Mac files and now, predictably, with our Fannie Mae short sale files. As you know the requirement for most short sales is that the Seller must be at least 31 days late on the loan...
The BPO May be on its Way Out
As we discuss in this month’s newsletter, for the past several years BPO’s (Broker Price Opinion) have been the primary method that note servicers/note holders used to establish the short sale property’s market value. The servicer might have ordered a more expensive...
TIME TO APPROVAL: What To Expect From Certain Banks And Servicers
The normal short sale with my office usually takes between 45 and 90 days to obtain an approval. The bank/servicer usually gives the party a 30-day window to close after approval. Some banks/servicers traditionally take longer and some take less time. Additionally,...
Government Backed Loans May Be Delayed
So you have your approval letter and now you are running into problems with the Buyer’s government backed loan. Whenever you take on a short sale an important consideration is the Buyer and the Buyer’s loan. For example, if the property is in unfit condition and...
Where Oh Where is the Mortgage Forgiveness Debt Relief Act?
So here we are again waiting to see if Congress will extend the 2007 Mortgage Forgiveness Debt Relief Act (Act) for another year. The extension came late last year because of the Fiscal Cliff negotiations. It was finally extended as part of the American Taxpayer...