Lender turns down loan modification and refuses to postpone the foreclosure auction to allow for a short sale. The lender hurts themselves and the seller who acted responsibly.
The seller contacted me many months ago to learn about the short sale option to avoid foreclosure. The lender, however, enticed him into a applying for loan modification.
Loan Modification Denied. No Time To Do A Short Sale.
Recently the seller contacted me that he was turned down for the loan modification, and asked that I start the short sale process, which I did. Shortly thereafter, the seller was given a notice that his house is scheduled to be sold at auction. The foreclosure process is very fast in Mt. Washington, KY.
We contacted his lender to have the house withdrawn from the auction so we can complete the short sale. The lender refused to withdraw, citing “company policy”.
Another house thrown off the foreclosure cliff, even though the seller acted diligently and responsibly.
The seller was also considering bankruptcy, depending on the outcome of the short sale.
This could have been avoided.
- Instead, another foreclosure will weigh down the market.
- Instead, another hard working American will file bankruptcy.
- Instead, another hard working American will be shut out of qualifying for a loan for years.
- Instead, the lender or their investor will probably incur more losses than they would have in a short sale.