Service Release Dates on Short-Sales

It seems to be the new thing to add to Short-Sale problems. Just when we are getting them a bit easier to manage the newest dilemma is if the bank sends the homeowner a letter stating they have a Service Release Date on their loan.

A what? A Service Release Date. The loan, that delinquent loan, the one I've been working on getting Short-Sale approval for you on? It's being transferred to a new Servicer....a new bank, a new lender....a new set of problems to get your short-sale approved.

It's hit me twice in the last two months. One with Bank of America. Fortunately my SS contact kept pushing to get approval for us even though the release date was looming. Then, the homeowner gets a letter stating they are not going to do the release. Borrower calls me and we both agree...."It's a miracle" So onward and forward, we get our approval letter and open escrow.

Another I just got with CITI. No letter to the homeowner....well, not yet. I just called to check status, I'm a total nag on Short-Sales, and the rep says "Oh, by the way....there's a Service Release Date of 1/15/2013" I pause....put the phone closer to my ear....and ask her to repeat herself. Ugh. This one is particularly challenging and the last thing my clients need to hear is this news.

But, I don't just lay back. Nope. I get out my little list from my CDPE (Certified Distressed Property Expert) website, of which I am a member, and call the escalation number. Calmly, softly, patiently...I explain the situation. 45 minutes later with Diana, I speak with Greg, and then lovely Diana calls me back again. Total time with CITI, maybe about 1 1/2 hours on the phone. At this point, they are sending messages to the team lead to try and keep pushing our approval forward so that hopefully we have a written approval before it gets released to OCWEN.

CITI swears all our documents will go to Ocwen so we don't have to resubmit. And, they state that we will continue where we left off without losing time...once it transfers. But, right now, my negotiator says he doesn't have the time to bother to look at our file since the release date is looming. But, my lovely Diana is pushing her team lead to get us another one assigned and keep working on it til it drops out of their CITI system. We'll be in a much better position to move forward if the approval letter has been issued prior to the transfer......supposedly....that's what I'm hoping for.....

Or maybe, just maybe, we'll have another miracle. The 2013 miracle. Cross your fingers, say your prayers, this family could really use a miracle just about now.....