Chicago Short Sale News: Loan Servicer Demands A Bribe From Home Buyer, Or They Won’t Approve Buyer’s Short Sale OfferPosted on October 23rd, 2012 in All Articles.
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 get back on your feet. Send me an e-mail at email@example.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Chicago loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Phillip Buoscio.
Phillip is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc.. Chicago Short Sales Realtor:
Phone: (312) 953-6725. firstname.lastname@example.org.
Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor.
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Phillip Buoscio, Better Living Realty – Buoscio Brokerage, Inc., and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
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.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Phillip’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc..
This information on Chicago Short Sale News: 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.