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Livermore Short Sale – Service Released Loans

by Scott Fuller on November 1, 2012
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Hi, everybody, Scott Fuller with East Bay Short Sale Group. We are your Livermore short sale specialists. Today is October 31st. Happy Halloween to you. We have some information from Bank of America on their servicing release.
Here’s what we’ve seen a lot lately in short sales. And if you’re a homeowner, you’ve probably seen this as well. Loans are getting service released to other companies. You may have Bank of America, who you write your check to. They’re the servicer for the loan. They may all of a sudden decide they’re going to sell it off to, for example, Green Tree. So Green Tree might be the new servicer. What happens at a short sale is, if we start a short sale process with Bank of America, we’ve submitted the file and everything, we’re waiting for an approval. If we get notification that loan is going to be service released, for example, to Green Tree, what Bank America is requiring us to do, is to pull the file from Bank of America, send it over to Green Tree for short sale approval with Green Tree, and unfortunately, they don’t transfer any of the paperwork over, so we have to start the process over.
It definitely can be frustrating for some homeowners because you’re losing time, but you’re also having to resupply additional paperwork. So what Bank of America said they’re going to do, is they’re going to send a letter within 15 days of when it’s supposed to be released, notifying you of that. You should also receive a letter from the new servicer letting you know that they’re going to be servicing the property from that point forward. And again, it’s very important to work with an agent who understands how to process these with service release. When it’s service released to a different company, make sure they understand the dynamics and how the process flow works with that, because it can be very confusing for both the homeowner and the agent.
If you have any questions on how that might work, or questions on if you think your loan is about to be service released, or just short sale questions in general, again, we’re your Livermore short sale specialists. We’re happy to provide a consultation. Contact us at Hope you guys have a great Halloween.

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