How Banks Submit Bogus Payoffs in a Short Sale

By
Real Estate Agent with RE/MAX Gold DRE #00697006

Now I know why suddenly the second lenders in so many Sacramento short sales have been demanding beneficiary statements from the first lenders prior to issuing an approval. I used to think, what the hey, why do they care how much is owed to the first lender. Short is short. Right?

But then I saw what Ocwen did on a Rocklin short sale recently. It bumped up the fees, late charges, penalities, all over a 5-year period and just about doubled their payoff. If we had just paid off the principal, it would not have been a short sale. On the other hand, Seterus and its investor Fannie Mae ganged up to request a payoff that far exceeded any reasonable amounts owed whatsoever, and it was completely wrong. Further, they had to have known it.

That blew me away. And they probably could have pulled it off if it wasn't for our diligence. You can read more in my personal blog at this link: A Ditech Short Sale in Elk Grove That Seterus Tried to Hijack.

Posted by

elizabeth weintraub

 

 

Weintraub and Wallace Realtors

 

 

Elizabeth Weintraub reviews

 

 

 

Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
California Sacramento County Sacramento
Groups:
Northern California Real Estate Professionals
Short Sale Specialists & Pre-Foreclosure Education
Short Sales Specialists
Short Sale REALTORS®
Lyon Realtors
Tags:
fannie mae short sale
seterus short sale
ditech short sale
why 2nd lenders demand payoffs from first
beneficiary statements for short sales
bogus payoffs in short sale
when is a short sale not a short sale

Spam prevention
Show All Comments
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Wow. What a story! This is why I don't do short sales anymore. Nice to know Green Tree is Ditech and that 2nd lienholders are asking for beneficiary statements. You are the expert, Elizabeth, and why homeowners in Sacramento who need to short sale should hire you.

Oct 08, 2015 04:26 AM #1
Rainmaker
1,549,930
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents It is incedents like this that really sour me on banks and home mortgages. It is just plain greed without limits. Thanks for the alert.

Oct 08, 2015 05:24 AM #2
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Elizabeth.  That sounds like fraud to me.  You can keep short sales for yourself.

Oct 08, 2015 09:15 PM #3
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?

Rainmaker
2,189,919

Elizabeth Weintraub Sacramento Realtor Top 1%

Put 40 years of experience to work for you
How much is my home worth?
*
*
*
*
Spam prevention

Additional Information