Service Release four days before foreclosure - Blessing or Curse?

We have a foreclosure date of 2/19/13.  We just discovered that the home is being service released on 2/15/13.  We are TRYING to figure out who it is going to, but in the meantime, we are trying to figure out if we are wasting our time with the Equator uploads, etc. . .File is currently with Bank of America.  When a file is service released which documents are required to go to the new servicer with the file?  Will the service release ensure a foreclosure postponement or is it possible that the new servicer will still foreclose four days after receiving the file?

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I would try to delay it with a motion in court, at least here in S Fl, it could probably be done.

I have a similar problem.  I had a Short Sale negociated with the first lien holder, then went to BOA for neg. of the 2nd, the file was complete and with the investor for approval and the servicing was moved............I can't believe that I have to start this all over again!  I am sure the buyer will walk....BOA took their sweet time with this file and I tried like crazy to get them to see if they could keep the servicing so we could go to settlement but it got transfered last friday.......now the new company "Speciaized Loan Servicing" is saying it will take them 6-8 weeks to get he file into their system so they can even do the seller interview!  Are they kidding?  Has anyone worked with his company before?  I thought BOA as bad....I have had the first mortgage approved for the short sale for several weeks now.........and the settlement has to occur before 3/16....the new servicer is making this impossible.  Does anyone have any suggestions?  Thanks

It's been my experience that when the Servicing is transferred, it takes the new Servicer at least a week to even upload the loan documents into their system. It also depends upon the Servicer to determine whether or not they would honor a previously administered short sale approval letter or if the process had to start over with their own forms, docs, etc. It may be the same with a foreclosure as well. Your best bet would probably be to determine who the new Servicer will be, contact them and try to find out whether or not the short sale and/or foreclosure process would have to start fresh with them (may be difficult since they won't even have the file yet), and then contact the foreclosing attorney to determine whether or not they've received a request to postpone. I suspect with the BOA settlement in which they've released servicing to a gazillion files....this may be par of the course for a while. Good luck!

Yesterday they told the seller it could take 6-8 weeks to up load the file with the new servicer...........that is ridiculous so today I am going to try and go higher up the food chain. I am prepared to have to start over, but not to take 6-8 weeks to do so.  Thanks for the info!

Yes, it is crazy isn't it. Starting over is not fun and certainly leads homes in a position for break ins, etc. I have this happening all the time now.

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foreclosure process in utah

A Bit late in the day, but these things are actually a plus for the homeowner/realtor.

 

Under RESPA guidelines, lenders cannot process any pending sale dates until ALL documentation has been transferred to them, in this case from the original servicer (RESPA - Real Estate Settlement Procedures Act - requires disclosure in advance of all amounts being paid to mortgage brokers and other third parties and prohibits hidden increases to the interest rate to cover the mortgage broker’s fees.  RESPA gives you the right to request in writing certain information about your loan and if the lender fails to respond, you can be entitled to damages.). Simply put, everything is put on hold until ALL loan documentation has been both transferred to, and is accessible on the NEW servicers' data system.

 

This obviously means that pending sale dates are put on hold until the documentation has been transferred to the new servicer, which, in my experience, has generally bought at least a month extra breathing time for the homeowner.

 

Keep in mind however that the sale date would generally tend to proceed as originally planed, UNLESS there was an offer on the table for the property that was acceptable to the NEW servicer. This means that HUD-1 documents, sales contracts, offers etc., would need to be submitted to the new servicers' short sale team ASAP.

Maybe, but I don't think RESPA applies to foreclosure dates and servicing transfers. I doubt they would be required to postpone a sale, and likely the sale would occur well before they even reviewed the file. So unless the previous Servicer cancels the sale, and I can't see why they would, it won't get canceled.

Well, from my experience it's just the opposite.

New service providers will want to insure that all foreclosure processes are in compliance with legal guidelines.

I have not seen BoA or the other companies that I've worked for, proceed with a foreclosure sale date when a file has been transferred in. The risk is too great. They would want to insure, again, that the process was done correctly.

Given the ROBO signing problems of a few years ago, it would not be "Best Practice" to do otherwise.

Your own results may vary.

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