Another Loan Modification Dooms Seller to Foreclosure Unnecessarily

By
Real Estate Agent with Keller Williams Realty Louisville East (502) 664-7827

Lender turns down loan modification and refuses to postpone the foreclosure auction to allow for a short sale. The lender hurts themselves and the seller who acted responsibly.

The seller contacted me many months ago to learn about the short sale option to avoid foreclosure. The lender, however, enticed him into a applying for loan modification.

Loan Modification Denied. No Time To Do A Short Sale.

Recently the seller contacted me that he was turned down for the loan modification, and asked that I start the short sale process, which I did. Shortly thereafter, the seller was given a notice that his house is scheduled to be sold at auction. The foreclosure process is very fast in Mt. Washington, KY.

We contacted his lender to have the house withdrawn from the auction so we can complete the short sale. The lender refused to withdraw, citing “company policy”.

Another house thrown off the foreclosure cliff, even though the seller acted diligently and responsibly.

The seller was also considering bankruptcy, depending on the outcome of the short sale.

This could have been avoided.

  • Instead, another foreclosure will weigh down the market.
  • Instead, another hard working American will file bankruptcy.
  • Instead, another hard working American will be shut out of qualifying for a loan for years.
  • Instead, the lender or their investor will probably incur more losses than they would have in a short sale.
Posted by

 

 

Dave Halpern

Realtor, Louisville Short Sale Expert

Keller Williams Realty Louisville East

(502) 664-7827

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Sellers looking for foreclosure help in Louisville, KY should call Dave Halpern, Realtor, Louisville Short Sale Expert, Louisville Short Sale Expert, Keller Williams Realty Louisville East, (502) 664-7827. I will dedicate to you all the time you need for a full explanation of the process. We are compassionate, caring and patient. I will listen to your needs and wishes and customize a strategy to meet your circumstances. In a short sale your lender typically pays your closing costs and commissions.

I will provide you detailed information about foreclosure options and short sales. We help dozens of sellers avoid foreclosure every single year in Louisville, Jefferson County, Oldham County, Bullitt County, Shelby County, Nelson County and Spencer County.

We can help. You have options. Call even if you think your house isn't sellable. Put an expert real estate agent on your side. Many testimonials available.

Dave also trains other Realtors how to perform successful short sales.

Sell or buy a home - start the process at Dave Halpern Real Estate Group

IMPORTANT NOTICE: Dave Halpern, Realtor and Keller Williams Realty Louisville East are not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit. We do not provide legal advice, you are encouraged to seek legal counsel. We cannot and will not charge upfront fees.

 

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Re-Blogged By Re-Blogged At
Topic:
Lending / Financial
Location:
Kentucky Bullitt County Mount Washington
Groups:
Club Chaos
Short Sales Specialists
The Ninety-ninth Percentile
Voice of Reason
"Whacked"!!!
Tags:
bullitt county ky
mt washington
loan modification
short sale
foreclosure
auction
dh
bankruptcy
lender
qualifying for a loan

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Rainmaker
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Pamela Seley, REALTOR®
REALTY EXECUTIVES OTF - Temecula, CA
Seals the Deals in Temecula Valley California

Dave, I don't get why lenders/investors would not allow a short sale! I'd venture to ask who the lender is, but, from what I understand the process is supposed to be: loan mod denied, opportunity to other alternatives other than foreclosure. Short sale first, if fails, then deed-in-lieu. This information I got from the CEO's office of Bank of America (my opinion of them is chanigng somewhat).

Mar 08, 2011 12:29 PM #1
Rainmaker
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Mark Lomas
Coldwell Banker Previews - Santa Barbara, CA
Excellent Service, Superior Results

Great post, keep the pressure on the banks, more Active Rain members could benefit the process by criticizing the banks also. The big banks have a ton of money, but will not play fair. The more we focus on their behavior the soon we can turn things around. Keep up the good fight!

Mark Danforth Lomas

www.MarinRealEstateBlog.com

Mar 08, 2011 12:36 PM #2
Rainmaker
315,642
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Pamela, very astute comment. It is not Bank of America. We have another 13 days to auction. We are working on getting from the seller the exact timelines of the loan mod denial as grounds for appeal of refusal to postpone the auction.

Mar 08, 2011 12:41 PM #3
Rainmaker
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Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Mark,

We are helping the banks and their investors, also. Too often they consider us adversaries.

Mar 08, 2011 12:43 PM #4
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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

And the banks did this all for the sake of what?

Mar 10, 2011 06:23 AM #5
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Todd Clark
Keller Williams Realty - Beaverton, OR
Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494

I hear this all the time and the owners are very frustrated and feel the banks did this on purpose. What is worse is a lot of those owners are the ones leaving these foreclosures looking like they have been destroyed and nothing left in the house.

Mar 11, 2011 06:28 AM #6
Rainmaker
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Michael J. Perry
RE/MAX Associates of Lancaster, PA. - Lancaster, PA
Lancaster Relo Specialist

Are these the same lenders who were bailed out by taxpayers they are now in the process of destroying ?

Mar 14, 2011 08:16 PM #7
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Rainmaker
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Dave Halpern

Louisville Short Sale Expert
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