My Bank Sold My Loan – Can I Still Do A Short Sale?
Has your mortgage loan been sold or “service released?” This should not affect your ability to apply for a short sale on your property. As a practical matter, it may cause a delay in processing. It may also affect your ability to apply for the HAFA program, if your new servicer does not participate in the HAFA program. You should receive notice of a change of servicer promptly — this is usually provided by mail unless you have given your bank permission to provide communication electronically. If you have not received a notice, you should contact your old servicer (in writing) and demand this information.
The typical situation I see is where a client stopped making payments on a second loan months or years ago and often by the time they contact me for a short sale the loan has been sold or “charged off.” If they stopped reading their mail, they may have missed the notice. If the loan has been sold several times, this can lead to a lot of detective work. So, it may take a little time to trace who the short sale package should be directed to. In some cases “charged off” seconds can be more difficult to negotiate especially if there is no purchase money protection on the original loan, but other than that dealing with a sold or service released loan will not block your short sale — it may simply slow it down a bit.
Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 938-9950.
Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.
* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.
Copyright© 2012 Tni LeBlanc *My Bank Sold My Loan – Can I Still Do A Short Sale?*
