Let’s begin today with a story. Kevin had a folder with a Capital One mortgage. They had the loan somehow transfered to SLS, Specialized Loan Servicing. The sale date was quickly approaching. The group at SLS let us know that the house was going to go to foreclosure unless the house owners paid $2500 to have the foreclosure delayed. Kevin was able to get the executives to put aside the nonsensical $2500 fee.
Because of the deferment in the foreclosure and the transfer of files, SLS had to order a subsequent BPO. The second BPO was reported at exactly the same amount as the initial BPO. This was great news for Kevin because the proposal on the table was somewhat higher than the BPO number. SLS did a excellent job getting the short sale agreed in 10 days.
Here is the crisis. SLS set the closing date for June 3rd, giving us fewer than 2 weeks to get the financing ready. Even worse than that though, the foreclosure date is scheduled for June 1st. So, as you most likely appreciate by now, we need SLS to put off the foreclosure date for a second time. Being a bit underhanded in their methods, SLS has again demanded the $2500 fee to put off the foreclosure and refuses to put aside the fee this time.
Obviously, this makes no sense at all. SLS has clearly approved the short sale since it will save them money over foreclosure. Yet, they still believe that they need $2500 to defer foreclosure.
Obviously the challenges put in place by SLS are costing them cash. This policy inhibits agents from closing short sales. It is not in the best interest of the bank or the house owner to continue to put into effect this unreasonable policy. Lenders like this one need to come to their senses and recognize that they are hurting their bottom line with the guidelines that inhibit loss mitigation.
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