Want to Experience Pain from a Dentist? Naaaa, Just Try and Get a Mortgage Satisfaction Instead!
Question 1
Been to the Dentist lately? If you have, you probably know that the new and improved way of cleaning your teeth is to perform a "deep root cleaning". This type of dental work is best performed after taking a mild sedative, topical antibiotic and Motrin. That, hopefully will do the trick.
Question 2
Have you had a short sale close lately? This type of real estate closing is best performed after taking lots of Zanex and "patience" pills (please know I am not advocating the use of medication in any way whatsoever). Though, in the end the short sale usually closes. Why, however, is the pain endured from a short sale transaction worse than the pain endured by the dentist? Because the pain and aggravation from a short sale often times does not stop once the transaction closes. The pain after the deep root clean uses ceases once you leave the Dentist office.
"Show of hands" ---- how many of you have had a short sale close in the past few months?
"Show of hands again" ---- how many of you have had a short sale close in the past few months and the Seller has received the Satisfaction of Mortgage within your State's statutory period of time? My estimate, via my Title Insurance Company, is that no less than 20% of the time a lender completely disregards our State's (Florida) Statutory requirement relating to Recordation of Mortgage Satisfactions. And yes, the payoff letter stipulates the loan shall be satisfied once funds are received from the Short Sale closing.
Not only does this complicate matters for the Seller, but is also is a terrible inconvenience for the Buyer.
Now for the really terrible part -- When you call the lender, they refuse to issue the Satisfaction or make it so difficult that countless hours are being put into a transaction which has already closed.
Are lenders doing this to be spiteful? Do they think they'll get the upper hand of the Seller at a later time? Do they believe that they can make a title claim later? Who knows what the reasoning is; the fact of the matter is that they are blatantly breaking the law and it's effecting consumers.
It's time for our elected officials to jump in and intervene before the problem becomes dramatically worse.
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