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Lending Institutions No longer Permitting Short Sales

A Realtor friend of mine sent me this information the other day! I truly hope they are trying to help the homeowners and are not just foreclosing on their homes! I know that Wells Fargo Bank did help many homeowners keep their homes by re negotiating the loans. Many thanks to Wells!!

Ocwen Loan Servicing announced that they are no longer permitting short sales. Their goal is to try to keep the homeowners in their homes or just take the property to foreclosure. If Ocwen is in first position and is receiving a FULL payoff, then a short sale can still be done with the second servicer (obviously). However; if Ocwen is being shorted on the first or the second, they will no longer allow the short sale process to take place at this time.

The President of National Short Sale Center is in discussions with the Ocwen Loan Servicing's Upper Management Department in an effort to allow negotiations of short sales with their company.

Does anyone know of any others who are not permitting short sales?

Posted by Jean Powers CRS,PMN,ASP Broker, Northern California on 03/25/2008 12:13 AM

Comments (6)

6 Comments on Lending Institutions No longer Permitting Short Sales

Jean.....our office received the same email last week about this lender no longer accepting short sales. Go figure, what next?

03/25/2008 12:17 AM

by Pam Winterbauer ~ 2006 REALTOR® of the Year (Windermere Welcome Home)

Just when we thought that there will be more and more of short sales. GO figure

03/25/2008 12:19 AM

by Jon Zolsky (FunCoast Realty LLC)

I just finished up a SS with them as the first last week. Must have been 'grandfathered' in. Good thing there are many other lenders out there!

03/25/2008 12:26 AM

by Menomonee Falls Real Estate - Matt Yogerst (RE/MAX Realty 100)

I hadn't heard. Thanks for sharing this important information on short sales.

03/25/2008 12:29 AM

by Vickie Nagy, Realtor, Specializing in San Ramon, Danville & the Tri-Valley! (Empire Realty Associates)

Jean: I think I have the answer. Ocwen feels that the market has shot them in the foot... the left foot. So, Ocwen has been walking with a noticeable limp. So now, Ocwen has decided to shoot itselt in it's other foot... the right foot. So now they will be limping on both legs... but somehow feel a very strange sense of balance. Let's see how long it lasts.

03/25/2008 12:31 AM

by Fort Worth Real Estate - - - Karen Anne Stone (RE/MAX Trinity)

luckily for all of us Ocwen is not a market leader. They are a bottom feeder. Their practices have been seen for years as aiming a little below the belt. This move is not a surprise. I doubt many lenders will follow them.

Ocwen is a servicer for investors and they also bought loan portfolios from distressed investors. They buy at a discount. So they actually have less to lose than other investors.

03/25/2008 01:10 AM

by NetOriginator.com / RadarCommercial.com

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