Westminster CO – An agent with the Stop Foreclosure Institute recently had a short sale negotiator lie to them. We have spent the last 6 months figuring out all the rules for short sales on different loan types.
The rules are different for an FHA Short Sale, a VA Short Sale, and a Fannie Mae Short Sale. This was an FHA loan. Here's what happened.
FHA puts out a letter called "Mortgagee Letter 2008-43." It details exactly how the banks are suppose to handle a short sale on an FHA loan.
This letter is 16 pages long and gives them specific directions on how much to pay agents, what percentage of the appraisal they can accept, etc. (If you're doing an FHA short sale, then Google "Mortgage Letter 2008-43.")
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
This agent had had a wretched experience on another FHA short sale. The lender had lied to the seller's prior agent and hadn't followed the short sale guidelines.
Because of that experience, this agent had read thru the guidelines 2-3 times. Bottom line, I know a little bit about FHA's rules for short sales. The problem was this short sale negotiator didn't want to follow the rules!
Instead she made up her own rules! She told the agent that the buyer and seller had to split the cost of the title insurance. The problem is on page 12 of the Mortgage Letter, it says that they are allowed to approve a file paying the standard title insurance costs.
It was standard for the seller to pay for the title insurance. The buyer pays their closing costs and the title insurance for their lender. But, this negotiator didn't want to allow that.
The agent had to argue back and forth with her for 2-3 days until she finally relented. Here is the problem I have with these banks.
If your investor gives you specific instructions on how to negotiate a short sale, then follow those instructions! In this case, we agents need to get better at knowing the rules. That way, when an egotistical investor tries to break the rules, you can keep them in line.
If a negotiator is lying to you, then ask for their manager. When you talk to their manager, explain how they are breaking the rules.
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 denverforeclosureblog@gmail.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 303-521-0984
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification?Our Westminster loan modification guide will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Request your FREE copy, below!
Thanks for reading this, Dan Hopper.
View My homes for sale at www.danhopper.com.
Dan Hopper specializes in loan modification assistance and short sales in Denver, Colorado. Denver Loan Modification Help, Denver Short Sales. Denver Realtor. Westminster, CO Loan Modification Help, Westminster, CO Short Sales, and Westminster Realtor.
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Important Notice
Dan Hopper, Remax Alliance, 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 Dan Hopper's personal views and do not reflect the views of Remax Alliance.
This information on Stop Foreclosure: Do Lender's Short Sale Negotiators Break The Rules?, is provided as a courtesy to our viewers to help them make informed decisions.
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