Why do lenders sell off a loan in the middle of a short sale?

Those who follow my blogs know that I do a lot of short sales. One of the worst things is when my Seller gets a letter from their servicer informing them that the loan is being sold off, and they must now contact this other company to do their short sale. For some reason, this always happens to my sweetest Sellers who are struggling really hard to keep current with the payments while they do the short sale. We're dealing with this situation on one of my short sales, and I just want to knock my head into a wall over and over again. But I've made it a mantra lately that I cannot stress out over things I cannot control, so I'll keep telling myself that. So here's my story...

I have the nicest Seller in the world who is getting a divorce and had to move out of the state for work. She's been renting out her apartment in the meantime, but the lease is up at the end of September. She's been carrying extra costs all along since her rent doesn't cover the entire mortgage, and she'd like very much to keep current until the short sale closes. As you can imagine, this is pretty hard when you have a mortgage and rent that you have to pay every month (along with all other expenses).

We collected all her short sale documents for Bank of America and sent everything in at the beginning of August. We were assigned a negotiator, had an appraisal done, and were moving along swimmingly. Then over this past weekend, she received a letter from BoA letting her know that the loan is being sold to Select Portfolio Servicing, and that starting September 1st, her payments go to them. So now all this paperwork that was done for BoA and all the processing that has already happened was all for no reason. She called the new servicer and they told her that they don't get the loan turned over to them until September 1st, and to not call back until Sept 17th to find out what short sale documents they need, etc because that's how long it'll take for them to fully turn over the loan. Of course I'm going to have her start calling on September 1st anyways, but sometimes I just want to call them and scream, "COME ON! SERIOUSLY?!"

On a brighter note, at least they didn't wait to do this until after we had the short sale approval and were days away from closing...because that has also happened to me. Gotta love short sales!

If your or anyone you know need help Selling or Buying a Home in Broward & Miami-Dade Counties, please don't hesitate to call me at 954.667.7253

Help lots of people and have a great day!

Patty Da Silva, CDPE©, RESS®, AHWD®, e-PRO®, GREEN, CFS, TRC, RSPS

BROKER - REALTOR® Serving South Florida ::: 954. 667. SALE (7253) ::: Green Realty Properties®

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Legal Stuff: This article (Contents) reflects the opinion of the author and it is not to be considered legal advice. The author is not an attorney or a CPA. If you are in need of legal or tax advice, it is recommended that you to contact a trusted professional advisor.