Who is Servicing the Loan?

WHO IS SERVICING THIS LOAN?

After working for 60 days on a short sale request, we were finally ready to close yesterday afternoon at 4:00 PM.  Through the normal course of the closing, we gathered proof of identification from the parties to the transaction and started to make copies of the Buyer's and Seller's Drivers License.  While waiting for the copy to complete (all of 15-30 seconds) the phone rang.  It was the short sale lender calling us.

When we picked up the phone we were greeted with the individual who had "negotiated" the short sale terms on behalf of the bank.  She was quick to inform us that the 2nd mortgage was not being "serviced" by them any longer and we would need to contact the servicing company to arrange for the short sale request.

WHO IS SERVICING THIS LOAN?

Befuddled, we asked the bank when the account was transferred to the new servicer.  They told us - January 2010.  Being that it was November 29, 2010 we were quite surprised!  

WHO IS SERVICING THIS LOAN?

Immediately panicking (because this would have been a big "boo boo" on our end), we checked our title search which clearly stated the name of the bank which gave us the short sale approval for the 2nd mortgage as the server (not the servicer who the bank says is handling the loan).

WHO IS SERVICING THIS LOAN?

We checked MERS -- they clearly state that the bank is servicing the loan (in lieu of the servicer that the bank says is handling the loan).

WHO IS SERVICING THIS LOAN?

What's happening?  We have a Buyer who has his home packed in his truck and a Seller who thought he had reached settlement on a short sale.  Not to mention the costs incurred by the Buyer to obtain a loan, the costs to the title insurance company in processing the closing and the time/effort/energy/expense involved with the Realtor's efforts.

WHO IS SERVICING THIS LOAN?

Thankfully we were making copies in the 15-30 second period when the bank called or the transaction would have closed!  And then what?

I ASK ONE MORE TIME:  WHO IS SERVICING THIS LOAN?