What are the specific damages a foreclosed homeowner might be able to be compensated for by their loan servicer due to a rejected short sale offer

Bountiful UTAH -  This is the third part of a recent topic I've been writing about on this site.  This is a follow up on an issue that came about when talking to a Bountiful resident named Diego. His loan was owned by Fannie Mae and the company (servicer) of the loan for Fannie Mae was rejecting a reasonable and excellent short sale offer for no valid reason.


When Diego's lawsuit against the servicer gets in front of a jury and he must show how this servicing company’s negligence caused Fannie Mae to lose $17,500 (what I project they will lose by foreclosing as opposed to accepting the short sale offer) and that it hurts them and Diego,as well. In this case, the jury will, in most cases, award damages to Diego in a heartbeat.
    
Here are some of the damages a foreclosed homeowner might be able to ask for.
Credit Damage. A foreclosure is much more damaging long term to your credit than a short sale. For the next 5-7 years (or possibly up to 10) the homeowner will have to answer yes to the standard questions that are on most credit applications: “Have you had property foreclosed upon or given title or deed-in-lieu, thereof, in the last 7 years?”
Harm from a potentially larger amount being owed to the owner of the loan. If the short sale was turned down, and as a result the home sold for less as a foreclosure, the owner of the loan could pursue the homeowner for more money as part of a legal judgement. (This would be a much easier argument after the foreclosed home sold and you have a copy of the sale prices of the home and the original short sale offer in hand.)


These are two things I can think of that are the most likely to be approved by a jury. I am not an lawyer, and you should always consult a lawyer in matters such as this, but it gives you ideas that you can present to a member of the legal community.  If you can think of additional damages, then please post them in the comments section below.

There is something else very interesting this home seller told me.
When he talked to a women at the servicer and asked why they were rejecting the short sale offer, she replied “We or some of our investors will buy it.”

That sounds pretty odd to me. I have seen other people who handle loans for a third party owner profit from the loan owner’s (Fannie Mae in this case) loss. For example, one local company charges the buyer a $1,500 to $5,000 fee for buying a short sale. If the buyer won’t pay, then the servicer won’t approve the short sale.

Remember, they are being paid by the owner of the loan (Fannie Mae a GSE that takes Tax Payer money.)
In fact, they are paid very well. The business of servicing is so profitable that many obscure companys like IBM Computers (who recently opened a subsidiary loan servicing company) are getting in to the game.  To me it seems like these companies are trying to make a cheap buck off of an American's misfortune.

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.utahhomesaver@gmail.com