Do Servicing Companies Have an Incentive to Foreclose?

By
Real Estate Sales Representative with Wizards of Waz Real Estate
https://activerain.com/droplet/Kt

I ran across this video and it's pretty scary! The person that is interviewed used to work for EMC, a loan servicing company, and she states that there was more of an incentive to keep a loan in a default state and ultimately foreclose rather than attempt to work on other options such as a short sale.

I do not begin to understand all of the underlying mechanisms involved in relationships between lenders, servicing companies, investors and the government and this video certainly adds to the confusion. I've always wondered why certain companies seem to take forever to process a short sale. I've also wondered why a number of lenders have offered my short sale clients the option of attempting a deed in lieu only to deny it after a number of months and immediately foreclose.

As bad as it may sound, this video may shed some light on that!

http://www.allaboutnews.com/watch_video.php?id=2442

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Tags:
the wizardsof waz
maricopa arizona home
maricopaarizonahomes

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
614,953
Tammy Emineth
Personal SEO - Website SEO and Real Estate Marketing - Marysville, WA
Content Marketer, SEO Teacher, Website Fixer

That is really sad since we hear all the time that more often than not the banks want to work with the homeowner. They are not in the real estate business but just like anything else, it's all about the almighty dollar and if they can squeeze any more out of us, they will. Sad.

Tammy Emineth

Jan 09, 2011 12:37 AM #1
Rainmaker
631,197
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Loan servicers are making a lot of money based on the video.  So it is all about the $$$ nad forget about anything else.  Thanks for sharing the informaiton.

Jan 09, 2011 12:47 AM #2
Rainer
119,215
Bill "Waz" Wasowicz
Wizards of Waz Real Estate - Maricopa, AZ

What really bothers me is that the media hasn't taken hold of this yet. Oh well, I believe that you get what you give and that everything you do comes back to you at some point in time. Hopefully that will be the case with companies like EMC.

Jan 09, 2011 12:47 AM #3
Rainer
119,215
Bill "Waz" Wasowicz
Wizards of Waz Real Estate - Maricopa, AZ

My pleasue! Spread the owrd and let's see if we can get people like this exposed.

Jan 09, 2011 12:49 AM #4
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
119,215

Bill "Waz" Wasowicz

Ask me a question
*
*
*
*
Spam prevention

Additional Information