WHAT HAPPENS WHEN YOUR LOAN CHANGES SERVICER IN THE MIDDLE OF A SHORT SALE OR LOAN MODIFICATION

Many homeowners today are very confused, awaiting the approval of a loan modification or short sale, only to receive notice from their lender that the loan servicer or the servicing of their loans is now going to be handled by another bank or lender.  The change in servicing or notice of servicer change is becoming more and more common these days and affect pending loan modification applications on non approved loan modifications and pending unapproved short sales.  Even if one has entered into the trial period of a loan modification, the new servicer can slam the brakes on and cancel the entire modification.

Often times, a call to the new servicer from an attorney handling the loan modification or short sale, may do the trick and force the bank pick up where it left off.  Other times, the servicer will simply not budge, and advises that it must start from scratch.  But when are they telling the truth or not?

The most important advice from a lawyer handling loan modifications and short sales on a daily basis is to “know  your rights and know your options. ”  Jacqueline A. Salcines, Esq.

A change in servicer will not change any of the loan terms as far as interest rate, principal or amortization schedule (years left on the loan).  However, everything else is fair game for change.

Often, this leads to a very frustrating situation for the homeowner borrower, having to start from scratch on a modification that is already months and months into processing.

While some lenders like Ocwen, Wells Fargo and Bank of America are quick to start over, others can truly be frustrating and uncooperative.

Homeowners that receive a change in servicer letter should immediately contact the attorney handling their loan modification, short sale or deed in lieu so that the best action is taken on their behalf.

At the Law Offices of Jacqueline A. Salcines, PA we do this day in and day out. It is our business to know the lenders and the most accurate and time efficient manner to handle the changes in the status of our clients loans.

We are here to help with all your loan settlement, loss mitigation and debt collection needs.

TRUST   |   COMMITMENT  |   RESULTS

 

Call me today for a free consulation.

Jacqueline A. Salcines, Esq.

J.Salcines@Salcineslaw.com

Tel:  305 |  669  | 5280