According to recent research posted in a New York Times article, if you are not yet behind on your payments but are about to be, it is now tougher to contact your mortgage company when trying to negotiate a short sale.
… it is possible to get a feel for what is happening on the ground from a new survey of 2,400 real estate agents sponsored by Inside Mortgage Finance Publications. The survey taps into the outlook of people who see troubled borrowers firsthand, when they try to sell their homes before foreclosure occurs.
For example, agents participating in the survey confirmed what many borrowers say: that loan servicers are downright unresponsive. This is especially true when distressed owners try to sell their homes before being put through the trials of foreclosure. When they sell at a price that is lower than the outstanding mortgage debt, that is known as a short sale.
Asked how servicers could streamline such sales, one said: “Allow you to go directly to the loss mitigation department without having to speak or argue with eight people before they finally give in and transfer you.” Another said: “Respond to offers within five business days — they are killing the market by taking upwards of three months to respond to an offer.”
A third participant said: “Answer their phone, make it easier to talk with the appropriate people, instead of playing Mickey Mouse games. I have never understood why these companies who are owners of a defaulted loan do not make it easier to communicate with agents who are trying to sell these homes.”
A few months ago mortgage companies were holding press conferences to announce great new programs developed to work with homeowners who were at high risk for foreclosure. They would talk about “streamlined” processes, willingness to help modify loans, even help to reduce payments all to keep the homeowner in their house. But now research has come out that many banks have not taken this course, and it appears they now have an adversarial relationship with the homeowner who is trying to do the right thing and let the banks now they are not going to be able to make payments on their home.
Where does this leave the homeowner who has realized they are no longer going to be able to afford payments on their home? Unfortunately they are left in the same situation as before and will have to work through the process of contacting the bank, getting in contact with the loss mitigation department, then trying to find a buyer for their property.
The article shows, that even large banks still have human components that make the decisions, and it is always best to try and take a “friendly” approach opposed to an adversarial “me vs. the bank.” I have found just having common courtesy and being patient is much better than taking a hard stance and demanding a bank work something out.
If you are a homeowner and find that you are about become behind in your payments, or already behind please contact WeBuyTucsonHomes.com to receive a free consultation and free offer on your home. There is never a charge and everything is strictly confidential.
~Caleb