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 payments prior to being able…

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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, there are 8 steps to a successful short sale and we complete each…

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So according to several whistle blowers that used to work at BOA, it turns out that the BOA reps in the Loss Mitigation Department were paid cash bonuses to shut files down and move them on towards foreclosure.  Shocked?  I’m not.  My staff just smiled and nodded when we read this.  That is because we…

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I know that we have talked about this before but since this is the “Year of Foreclosure,” it warrants an update and reminder. First of all we should remember that there is no right to a short sale and, by extension, no right to a postponement of the foreclosure sale.  We are essentially asking the…

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As we have discussed before there are new players coming into the loan servicing business. Additionally, because of new rules and guidelines for banks, some are getting out of the loan servicing business. When one bank/servicer sells its loan servicing rights to another servicer the loan is “service released” to the new servicer. When negotiating…

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In a short sale it is always a good idea to close as quickly as possible. Just because you have an approval letter with a green light to close by a certain date does not mean that things won’t change. The bank will usually honor the terms of the approval as long as it closes…

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Let’s Take a Ride

Sometimes a reminder is needed about an unfortunate fact that we all have to live with: The bank drives the bus, not us……not the seller, buyer, agent or attorney. We are asking the bank/investor to take a loss on this loan and for that they get the keys. Our job is to keep everything moving…

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I have already written about the buyer getting the home inspection done earlier instead of later. The absolute best way to handle the home inspection for a short sale, however, is for the Seller to get a pre-inspection before putting it on the market…or at least before there is an offer. If the Seller does…

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The answer is, maybe.  Before April of this year,  this would have been put in the “myth” category.  We have handled many files in which the Seller continued making their payments throughout the short sale.  However, back in April we had two BOA files and a Wells Fargo file rejected in one week because the…

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The simple answer is…more than meets the eye.  Let’s backtrack a bit.  In February the Big 5 banks: Bank of America, JPMorgan Chase, Citibank, Wells Fargo and Ally Financial (formerly known as GMAC) got a slap on the wrist and a $25 Billion dip in their rather deep pockets for their part in the Robo-signing…

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