Chicago IL – We’ve been discussing Wall Street owned loans and “sliced and diced” loans for a couple of days. The owners of these loans are different from Fannie Mae, Freddie Mac, FHA, and VA. They are not as likely to not give you a complete release from the debt. But, here is the good news.
In our experience, around 50% of all “sliced and diced” lenders will give you a complete release. It is all up to the guidelines give to them by the trustee of the trust.
If they will not release you, it is still very unlikely they will attempt to collect from you in the future. Remember what I said about them being “Zombies”? There are 10,000 owners of the loan, scattered across the country and around the world.
They have no idea on which house they own a percentage of the mortgage. They just get a check each month. The owners of the loans have little oversight.
They hire a lender to collect payments, handle accounting, and call you in an attempt to get you to pay. These lenders don’t have much time to focus on each loan.
When the lenders are hired, they compete heavily on price. “We will handle each loan for $30 a month”, they say in an attempt to be hired. Does the lender really have the time to do a great job collecting the debt? No.
It means that you are less likely to have to pay any money after a short sale. They have thousands of other loans to handle. Is the trustee of the trust going to chase you down? I doubt it. They are probably getting paid very little as well.
Most of them have hundreds of trusts to oversee. They aren’t getting paid enough money to do an incredible job going thru each loan, one by one.
There is only so much you can do if the lender will not issue a complete release. Your agent should attempt to “escalate the file” to get you the complete release. That often works. But not always.
The owners of the loan give the lenders guidelines they must follow. if they don’t follow them, they can be sued for the loss. If those guidelines state that they are not allowed to grant a complete release for any reason, then they can’t give you a complete release.
In that case, you are better off doing the short sale. The lenders are so disorganized that they almost never attempt to collect. I know a guy who short sold his house. It had a “sliced and diced” loan. He didn’t get a complete release.
For another 6 months, the lender mailed letters and made debt collection calls (this was just a continuation of the calls from the foreclosure process.) After that, they disappeared. It has been almost three years and they have never done anything else. In order for them to collect, they will have to go to court. On my next post, I will discuss what to do if they do attempt to collect from you in court.
Are you interested in selling your property as a short sale? Call me at (312) 953-6725 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thanks for reading this, Phil Buoscio.
Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..
Phone: (312) 953-6725. firstname.lastname@example.org.
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Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. ChicagolandShort Sale Realtor. Chicago IL Short Sales. Chicago Realtor.
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