Wednesday, July 11, 2012


The transfer of loan servicing from one entity to another is certainly nothing new. However, there seems to be a new wave of transfers. Aurora has transferred to NationStar mortgage and CITI has transferred to Carrington Mortgage. As a side note, Carrington is a new servicer there is no history to guide us. I have noticed a number of blogs and questions on websites about how the transfer of servicing can affect a short sale and/or a foreclosure sale date. There seems to be a lot of panic, but the servicing transfer may be a good thing for you. The first thing to do is to contact the new services and be nice and polite. They have not done anything wrong (YET). LOL! If you explain that you initiated a short sale with the prior servicer, and that you need more time, just ask!! More often than not they will grant more time. Also note that even in non-judicial foreclosure states, there are statutes that govern adjournment of sheriff or trustee sales. If this does not result in additional time, then politely explain what the other servicer did wrong (multiple document submissions, etc). You can also point out the positive highlights of the short sale offer such as offer close to BPO etc. My process is that I first try and ‘kill them with kindness. If that does not work, I resort to financial common sense of why extending the sale date may be a good thing for the servicer and the investor on the loan. If that fails, I “go Jersey” on them LOL. For example, you can point out that the transfer of servicing may not have been effectuated properly. For example, I have notices that NationStar has not been particularly diligent about advising homeowners of the transfer of servicing. As I write this blog, I have been on hold with them for 30 minutes, so I am multi-tasking!! I will conclude with a concept. You probably were not getting very far with the prior servicer (they certainly knew in advance of the transfer and probably sis little on the file). A new servicer is probably a good thing. Padraic Deighan J.D. Ph.D http://www.homesavers.pro

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