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.