In other words, the loan servicer was to look out for the loan owner's best interest.
Processing and approving a short sale will usually avoid future losses on a mortgage. Boston Consulting Group recently did a study on the difference between a short sale and foreclosure.
They found that a short sale dramatically reduces future losses when compared to a foreclosure.
Here is a real life example: One lender rejected a 385k short sale offer. The home was foreclosed upon and put up for sale. It sold for $230,000. We estimate the owner of the loan, Fannie Mae, lost $182,000.
We have seen this happen over and over again with short sale offers. The loan servicers drag their feet on processing the short sale. The home is later foreclosed upon and sells for substantially less.
But, we had never seen a loan servicer work against their customer / client's best interest. Until we saw a short sale approval letter come across our desk.
The loan servicer was asking for a $2,500 fee to be paid to them. If it wasn't paid they wouldn't approve the short sale. I was shocked. "Aren't you required to work in your client's best interest?", I asked them.
The woman at the loan servicer replied, "Well, we checked it out with our legal department and the said it is ok." I don't really understand what she meant by "ok."
This company is not working in their client's behalf. The loan servicer actually has a fiduciary duty to do what is best for the owner of the loan. And putting a roadblock in the way of approving short sales isn't doing what is best for their client.
So, what does this mean to you? In my opinion, it gives you a strong basis for a lawsuit against that loan servicing company if your loan modification or short sale isn't approved because you won't pay their fees.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at firstname.lastname@example.org. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 530-306-3316.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Sacramento Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, John J Hayes.
John J is a Real Estate Agent at RE/MAX Gold.
Phone: 530-306-3316. email@example.com.
"Hard Work and Dedication"
View My homes for sale at www.johnhayesrealestate.com.
John Hayes specializes in loan modification assistance and short sales in Sacramento California. Sacramento Loan Modification Help, Sacramento Short Sales. Sacramento Short Sale Realtor. Short Sale Realtor. Sacramento CA Short Sales. Sacramento Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Hayes's personal views and do not reflect the views of RE/MAX Gold. This information on Loan servicer demands a bribe from home buyer, or they won’t approve buyer's short sale offer is provided as a courtesy to our viewers to help them make informed decisions.