SLS Approves Short Sale And Subsequently Threatens Foreclosure?
Let’s start today with a narrative. Kevin had a folder with a Capital One mortgage. They had the loan in some way transfered to SLS, Specialized Loan Servicing. The sale date was rapidly approaching. The people at SLS let us know that the residence was going to go to foreclosure unless the home owners paid $2500 to have the foreclosure postponed. Kevin was able to get the executives to ignore the unreasonable $2500 fee.
Because of the delay in the foreclosure and the transfer of files, SLS had to order a second BPO. The subsequent BPO was reported at precisely the same amount as the primary BPO. This was magnificent news for Kevin because the offer on the table was slightly higher than the BPO figure. SLS did a terrific job getting the short sale accepted in 10 days.
Here is the trouble. SLS set the closing date for June 3rd, giving us fewer than 2 weeks to get the financing completed. Even worse than that though, the foreclosure date is scheduled for June 1st. So, as you perhaps recognize by now, we need SLS to postpone the foreclosure date again. Being a bit scheming in their methods, SLS has for a second time demanded the $2500 charge to put off the foreclosure and refuses to ignore the fee this time.
Clearly, this makes no sense at all. SLS has clearly approved the short sale because it will save them cash over foreclosure. Yet, they still believe that they need $2500 to reschedule foreclosure.
Clearly the challenges put in place by SLS are costing them cash. This procedure inhibits agents from closing short sales. It is not in the best interest of the lender or the home owner to continue to put in force this absurd rule. Lenders like this one need to come to their senses and understand that they are hurting their bottom line with the rules that inhibit loss mitigation.
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