Hello Agents! Did you have short seller(s) (post 2011) required to “bring in their own cash” (contribute) to close their short sale. If so you may have good news for them as they may have refunds coming. These same short sellers are just now becoming eligible (i.e. Boomerang Buyers) for another home purchase!!!! Back in July 2011, California passed a law prohibiting lenders squeezing (extorted) desperate homeowners to bring in money to close their short sale. The servicers (and Fannie), while not admitting culpability, have said a “data error may be to blame”. Data Error? Really? Let me quote Judge Judy’s book: “Don’t pee on my leg and tell me it’s Raining”. The detailed report, (available here), prompted the FHFA to issue a response, saying while it recognizes the GSEs’ obligations to protect borrower interests, but it is unclear whether or not actions occurred that run contrary to California law as noted by the FHFA Offcie of Attorney General (OIG). A routine audit by the OIG revealed Fannie servicers collected borrower contributions on 124 short sales completed in 2012, possibly violating California law. After requesting Fannie short-sale data going back to 2011, the OIG acknowledged 1,222 borrower contributions were collected, potentially violating California law. Editor’s Note: Further research (almost certainly) will reveal more violations OR does anyone think in the entire state of 30+ million residents there were “only 1,222 victims. The OIG also claims some of the collections may have violated the Affordable Foreclosure Alternative (HAFA) program that went live in 2011. Bottom line is this: Its always a positive to be able to contact past clients with (possible) good news. especially if it involves (potentially) thousands of dollars in refunds.
Posted on: Wed, 29 Jan 2014 00:43:31 +0000
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