Are homeowners able to sue their lender for damages after a foreclosure?

Bountiful UTAH -  I am following up on a question from Diego, from a previous post. His loan was owned by Fannie Mae and the company servicing the loan for Fannie Mae was rejecting an excellent short sale offer for no valid reason.


This is a quick recap of what I recommended Diego do.
Step #1: Call up the servicer and demand a written letter explaining why they are declining the short sale offer.
Step #2: Write down what you project your damages are going to be if the property is foreclosed upon instead of sold as a short sale.
Step #3: Call up the company handling the loan for Fannie Mae and tell them if they reject the short sale for no reason and the house is foreclosed, then you will be suing them for those specific damages you drew up in Step #2.


Here is the basis for a lawsuit filed by Diego.

Fannie Mae is the owner of his loan. If the short sale offer is rejected, then the property will be foreclosed.  In most cases, foreclosed properties sell for 10-18% less than a quality short sale offer. I can show you countless examples of this happening.

The company handling his loan is not his “lender.” They were a third party hired by Fannie Mae to collect payments and do what is in Fannie Mae’s best interest.

The basis for the lawsuit against this servicing company is that they are not doing everything they can to help Fannie Mae net the most money from the property sale. As a result of them not doing their duties on behalf of Fannie Mae, Diego will have a foreclosure on his record for at least 7-10 years.

We all know that a foreclosure will be much more damaging to his credit history. He will have other damages as well. That will be the basis of his lawsuit.

When you get in front of a jury and show how this company’s negligence caused Fannie Mae to lose $17,500 (what I project they will lose by not accepting the quality short sale offer) and that it hurt Diego and Fannie Mae, as well.  A sensible jury will award damages to Diego in a heartbeat.

In an upcoming post, I will detail the specific damages that Diego may, in fact, be able to seek from the servicer for their rejection and lack of action on a quality short sale offer.

Thinking about a short sale? I can help you short sale your property and never pay the bank another dime. Send me an e-mail at utahhomesaver@gmail.com. I will contact you for a free consultation.  When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call Dave at 801-651-0707.

Thinking about a loan modification? Our Utah Home Saver Loan Modification Kit has the instructions you will need to get a loan modification approved with your bank.  This is a FREE for you, all you have to do is call or  email us today.

Thank you for taking a few minutes of your busy day to read this, Dave Forsberg.

Dave is a Realtor with Prudential Utah Real Estate - Bountiful.

Phone: 801.651.0707   Email: utahhomesaver@gmail.com

Dave Forsberg and The Utah Home Saver Team specialize in helping Davis County, Utah Homeowners short sale and never pay the bank another dime. Bountiful Loan Modification Help, Bountiful Short Sales. Bountiful Short Sale Realtor. Bountiful Realtors. Bountiful Realty. Bountiful Realtor. North Salt Lake Short Sales. Woods Cross Short Sale Realtor. Centerville Short Sales. Farmington Short Sale Realtor. Fruit Heights Short Sales. Kaysville Short Sales Realtor. Layton Short Sales. Layton Short Sales Realtors. Syracuse Short Sales. Clearfield Short Sales Realtor. Davis County Utah Realtor. Stop Foreclosure. Stop Utah Foreclosure. Avoid Foreclosure. Avoid Utah Foreclosure. Foreclosure Alternatives. Utah Foreclosure Alternatives. Bountiful Homes for Sale. Bountiful Houses for Sale.