Do negotiators deny files just to make their approval times look better
I started this short sale in October, I am sure my borrowers think I don't know what I am doing at this point.
I was able to postpone the public sale from May that was rescheduled for September I believe a 90 day extension and we are still not approved. The negotiator at LRC actually denied the file a while ago because too much time had passed. He had all of the docs requested so the only reason I can think is that his approval time would look better if he denied it. He said to just initiate a new short sale.
The borrower was going to get $8400 through HAFA, but we got a counter offer $10K higher than the list price HAFA gave us, Freddie doesn't do HAFA as of Jan 1, so we lost the incentive. So we got it under contract again in February (just a few weeks), I put all of the docs necessary back in and still got several requests for more docs and items over the next few weeks. I put the items in within a day of when they were requested. Without going into all of the details, I got a new negotiator who asked for different things and wanted the investor to sign differently etc.
We postponed the public sale date and I updated the docs again (in May/June). The negotiator said no problem they will get it done quick. Got approval on the second lien and then too much time passed, denied re initiated short sale. Eventually the counter came back that the borrower didn't qualify for the $3000 incentive. I questioned this and got from the negotiator that he checked and they don't, so I said if my borrower who is out of work and has no money doesn't qualify then nobody does. Understand...he qualified all along...since February. So I get frustrated and agree to the counter...THEN I get a message that they do qualify but since I agreed to the offer not including $3000 he had to deny it. 9 days later no denial so I couldn't initiate the short sale again. Then I get an email that my file is going to another negotiator. Now, I get a message that the unemployement letter is out dated. I don't know what she is talking about. I updated everything required several times. Is the unemployment letter part of the 710?
I thought we were past the games with short sales But I swear LRC is just playing games until the public sale comes up again.
My borrower is an out of work plumber, since we started this his wife and kids left him, he is living with utilities on and off based on his ability to pay for them. He went through major depression for a few months and now he is training for a new line of work. However, he has no money to move once the house finally closes.
Any ideas? I am about to take this story to the local news. He is truly a victim of the mortgage crisis, he didn't over buy and was not a wanta be investor.
Replies to This Discussion
-
Permalink Reply by joe beauchamp on
-
The sub-companies are hot/cold and mostly bad. I have not dealt with LRC in at least 2 yrs and they could have greatly changed. Sometimes they are actually helpful, but when there is a problem, they add a ton of delay and trouble.
BofA seems to loosely manage these companies - not good.
Summer is a "delay" time - it has not happened to me this year, I expect that to be just luck, but I can find stages delayed 1 to 2 weeks because "that person" is on vacation - both at the bank and the investor. Good thing they aren't doctors. Of course you know servicers lose money every time a (short) sale succeeds and their boss isn't paying much attention (the investor), usually.
In the past, I've dug into the management of LRC and others to get to someone who can discuss issues and make things happen. It is a spotty way to go and usually tough to find your way.
Currently, I've found the best interface for problems at BofA is tweeting to BofA_Help - better than calling the office of the prez. When I've tried more than 1 or 2 times to get something done, I also go to escalations (#5 when calling the SS reps) and find those people usually listen and can initiate things on their own.
In your case with the confusion and incentive stuff, I'd definitely contact Freddie. They are generally tough to deal with, have a lot of the FNMA "we don't care" approach, however, they will relent with enough persistence and logic on your part.
I assume you have asked for LRC escalations, and their supervisor and gotten nowhere - worth pushing, and let them know that you are noting names and going to escalations at BofA and Freddie if things don't make sense to you. Tweet to BofA right away - these people do not know SS's, however, they know honesty and logic, so give it to them straight and they often (actually, a surprise to me) rattle cages and get things done.
At the first hint of getting nowhere, mention that you need to go to the investor because something isn't right (give them a chance to fix it - at this point, I would be mentioning this at each step), then get in touch with Freddie (because THEIR employee can't figure out what the rules are and your homeowner is being screwed because of it, but with the facts - the intelligent ones, tweet, escalators, freddie, appreciate the lack of bluster and the enrichment of logic and honesty).
Mainly, you have to be persistent - it must be easier for them to do the right thing then blow you off.
Local news gets results, your story has to be interesting. State senators seem to get through to these people, too.
[And, yes, it certainly seems that there is no way some of the specialists should be employed anywhere - and the lack of management of them says the same for management - unless this is on purpose. It is just the what we have to deal with at some of these banks.] Good luck!
-
-
Permalink Reply by Kathy Yannes on
-
Thanks Joe, I was trying to keep it short but I did the whole Freddie mac thing and got a response actually from posting on this site. All of this to postpone the public sale. So I took a sigh of relief as I was assured it would go through quickly and then got stuck in delay tactics...or incompetence I am not really sure which. I just sent a tweet, I had to figure out how to do it (which I needed to do anyway). Thanks for you help and input.
-
-
Permalink Reply by Michael Hayley on
-
Joe, I learned from your response. Thank you.
-
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons