*WHO OWNS THE MORTGAGE LOANS** ON YOUR PROPERTY?*
Ninety-four percent of the short sale transactions that we take on require
that we negotiate two (2) loans on the client's property. Both lenders must
agree in order to allow a short sale to move forward. This can create some
real challenges.
*PRIMARY LENDER (NOT REALLY A LENDER AT ALL!!)*
Most sellers really believe that the lender in first position actually owns
the loan. In fact, in most instances, the company is merely "servicing" the
loan on behalf of an investor/owner of the loan.
Fannie Mae or Freddie Mac are large owners of loans who employ certain
servicing agents to handle collection of monthly payment, foreclosures and
the like. These companies are paid a percentage fee for returning a certain
return on investment for the loan owner/investor.
So, when you (or we as your negotiator) are talking with the lender in first
position, we are really dealing with an "agent" of the true lender. They
generally *do not* make the decisions. They are tasked with getting all the
information together so that a decision can be made by the true loan
owner/investor.
No one anticipated that there would ever be a huge recession with short
sales such a dominant part of the sales marketplace. It has created a huge
backlog with lenders as we all are vividly aware.
Lenders in this position are collateral based. They will focus on the value
of the property in a much more focused fashion than a second position
lender. They will focus more on B.P.O. (Broker�s Price Opinion or Broker
Option of Value) matters than the second position lender.
Our real problem with servicing companies is that they are scared to death
that if they somehow make an inappropriate decision, the investor may
require that they (the servicing company) buy back the loan. This is part
of the reason why the negotiation process takes so long.
*SECOND POSITION LENDERS*
Second position lenders generally own the loan and are not servicing
agents. Even if the same company appears to be both first and second
position lenders, in reality they are generally not the same lender.
*McFERRAN, BURNS & STOVALL, P.S.*
Real Estate Attorneys
3906 South 74th Street
Tacoma, WA 98409
Telephone 253-284-3838
*www.mbs-shortsales.com*
* *
David Colbeth Your Community REALTOR� 253-778-6423 phone/text /
206-264-5217 efax
CDPE - Certified Distressed Property Expert - Oh, don't forget... I'm never
too busy for your referrals!
Please visit my websites: www.DavidColbeth.com ~
www.YourCommunityRealtor.com
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