- I am following up on a the previous blog from “Arman”. His loan was owned by Fannie Mae and the company handling the loan for Fannie Mae was rejecting an excellent short sale offer for no reason.
Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.
So in this scenario, when one finally gets in front of a jury and show how this company’s negligence caused Fannie Mae to lose $15,000 (what the projected lose may be) and that it hurt the borrower as well, the jury may award damages.
Here are some of the damages a foreclosed homeowner might be able to ask for.
Credit Damage. A foreclosure is much more damaging long term to your credit than a short sale. For the next 7 years they will have to answer yes to the standard question that is on most credit applications: "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?"
Harm from a potentially larger amount being owed to the owner of the loan. If the short sale was turned down, and as a result the home sold for less as a foreclosure, the owner of the loan could pursue the homeowner for more money in some US States.
This would be a much easier argument after the foreclosed home sold and you have a copy of the sale prices of the home and the original short sale offer in hand.
These are two things that are the most likely to be approved by a jury. If you can think of additional damages, then please post them in the comments section below.
There is something else very interesting this home seller has said. When he talked to a women at the lender and asked why they were rejecting the short sale offer, she replied "We or some of our investors will buy it.”
That sounds pretty fishy to me. I have seen other people who handle loans for a third party owner profit from the loan owner’s loss.
For example, one company charges the buyer a $1,500 to $5,000 fee for buying the short sale. If the buyer won’t pay, then they won’t approve the short sale. Remember, they are being paid by the owner of the loan.
In fact, they are paid very well. The business is so profitable that IBM Computers recently opened a subsidiary loan servicing company.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at Ashish@CalCapHomes.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 818 259 3455.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Ashish Trivedi.
Ashish is a Real Estate Broker - Ashish Trivedi at California Capital.
Phone: 818 259 3455. Ashish@CalCapHomes.com.
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Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Ashish Trivedi's personal views and do not reflect the views of California Capital. This information on The specific damages a foreclosed homeowner might ask to be compensated for by their lender after a rejected short sale is provided as a courtesy to our viewers to help them make informed decisions.
