ARE YOU A VICTIM OF SERVICE RELEASES?

By
Real Estate Agent with Re/Max Professional Asociates 74203

The newest road block to successful short sales is a service release.  What is this?  First of all let me explain the "service" aspect.  Large banks like Bank of America, Chase, Citi, etc accept and manage borrower's mortgage payments.  They collect a small percentage of the mortgage payment.  They are now selling off these servicing rights to smaller banks.  Why are they doing this?  It seems for financial gain.

The financial gain is that the new sevicer does not have to honor the cash incentives promised to the homeowners by these large banks.  The thousands of dollars promised to the cash strapped sellers evaporates and leaves them with no money to move.  The buyer experiences more frustration because the short sale process is extended weeks if not months.

I realize these banks are in business to make profits but this is a morally bankrupt financial maneuver.  A few more pennies in the dividend check is not worth the selling out of Americans.  There is a special place in hell for people who are so soulless.

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Topic:
ActiveRain Community
Tags:
dudley homes for sale
webster homes for sale
conrad allen realtor

Comments 63 New Comment

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Rainer
182,164
Thomas McCombs
Century 21 HomeStar

The bean counters have discovered another way to keep their bottom lines from being further reduced. That is part of their job.

Those mortgages do not have real people attached to them as far as the beaners are concerned.

December 06, 2012 06:59 PM
Rainmaker
261,048
Paddy Deighan JD PhD
Paddy Deighan J.D. Ph.D

it has gone largely unnoticed that Citibank unloaded most of their serviing properties and Bank of America iunloaded up to 40% of them - all within the last 6 months

December 06, 2012 07:47 PM
Rainmaker
919,316
Conrad Allen
Webster, Ma, Realtor
Re/Max Professional Asociates

Thank you for all the comments.

December 07, 2012 03:22 AM
Anonymous #62
Anonymous
Anonymous

I completely understand the servicing concept, as described well by Rodney Mason, Prospect Mortgage, in an earlier comment and, in years past, have experienced such.  But, here is a new twist, or so to me.  Have you experienced this example:

Bank of America sold some of its' servicing to OCWEN.  OCWEN has an "offshore" call center where a client calls for assistance.  If you can hear through the multiple voices speaking and answering in the echo-filled call center, as well as understand the dialect, they give an appointment, as much as several weeks out for their specialist to call the client. 

Appointment time comes.  If you miss the telephone appointment, you have to go back through the process.

Totally impersonal; non-relationship building; frustrating to homeowner who just needs some professional help.  It saddens and disappoints me to see United States banking institutions growing their means on the backs of legitimate, assistance-seeking homeowners...good folks who have sad things to happen in their lives.

December 07, 2012 05:58 AM
Rainer
54,455
Rob Renk
Easy Hard Money Lender | DFW | minimum $60K+

I agree.  The big banks make the process worse because they want to squeeze every nickel from a deal.

 

December 07, 2012 08:16 AM
Anonymous
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Rainmaker
919,316

Conrad Allen

Webster, Ma, Realtor
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