Calif SB 458 Violation? Ing SS Negotiator Demanding Money from Borrowers 'To Convey Clear Title"
There is a recent law passed here in California on July 18, 2011, specifically SB 458, that states once a lender agrees to accept a short sale payment on a property, those in first position and all juniors must consider the outstanding balance as paid in full. The homeowner will not be held responsible for any additional payments on the property.The former SB 931 required only the first lien holder in a short sale to accept an agreed-upon payment as the full payment for the outstanding loan.
Today I was told by a 'home retention specialist' that Ing knows about this law but is asking for money from borrowers 'to convey clear title' and this they think is legal. They also demand to use their own title and escrow, as many of you have stated before, which appears to me to be a violation of RESPA that allows the parties to choose their own settlement services. I question whether the bank is a party to the sales transaction. a party to a short sale.
Anyone every challenged this bank's practices?
Also, I was also told their commission limit is 6% and only "2.5% on dual agency" sales. Anyone gotten more?
Thanks for your feedback.
Replies to This Discussion
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Permalink Reply by BJ Stulles on
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I meant to say 5% commission (how do you edit your own posts?)
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Permalink Reply by Kylee Roe on
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Well, let me tell ya...ING is very difficult.If you check those Senate Bills closer, I think that they do explain that seller contributions are not allowed (not sure on this, hopefully someone else will chime in!). If so, then they are out of bounds.
They can choose their own title/escrow company, but your buyer shouldn't have to pay any escrow fees in that case.
K
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...and it's hard to go above the negotiators head. I couldn't find a way in. And she told me she knew my seller had more money so it was either "this..or that (whatever items they needed--more money above market) or they would foreclose. More like they were out to get the seller than help. Seriously time to write your congressmen about this ING outfit!
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There are so many state attorney general offices, fed agencies and private attorneys out there suing lenders for fraud and violations of law and predatory practices...Perhaps a joint letter by brokers with bad experiences should be addressed to them so they will consider ING as their next defendant. If anyone here has had Ing DENY A SHORT SALE, I gleen your client would be an excellent candidate for such an action. You might even be entitled to collect a commission based on your listing agreement. (Saw a case where a lender's short sale practices were held to be in bad faith and the broker got paid his commission!).
This is so 1990's. I can't believe today a lender would have the gumption to defy the law AND treat desperate borrowers losing their homes this way who have significant federal protections behind them...as if this one bank is free from any legal consequences!
I recommend anyone doing a short sale with ING to make copies of all your communications going either way and to send yourself an email outlining all verbal communications with them for your record. I smell a class action a mile away!! Document everything! Bus Prof Code 17200 Unfair Business Practices---Federal Business Practices Act---Bank Violations-----here we come!
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One of the tools I've been using lately is hiring an attorney when I come across a sticky situation that looks like I'm not going to make headway going through the usual channels - particularly when dealing with an out-of-state lender who is unclear on California law. The lawyer I use I have found to be affordable and direct - I explain the situation to him, he reviews the docs and writes a letter to the lender. So far, it's been really effective. I can talk about SB458 until I'm blue in the face, but one attorney letter has much more impact. He's about $220/hr, and doesn't overbill. I can usually (depending on the price of the property, etc.) get all parties to share in the cost. If you're interested in his contact info, just drop me at email at: [email protected].
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