Knoxville Short Sale Question: What Is A Service Release?

mortgage-cash.ju.topIn our Ask the Expert Section, we recently received a question from Leila, she asks, "I started a short sale with Bank of America a few months back on my Knoxville home. We submitted all of our paperwork back 3 months ago, only to receive notification recently that our servicing rights had been sold, therefore our short sale was denied. What exactly is a service release? And, what does it mean for completing a short sale on my Knoxville home?" Knoxville short sales are always an adventure. Unfortunately, while a short sale is being negotiated, you can't always stop a bank from a transferring the service rights on your loan or from foreclosing on the property. With as large as a bureaucratic mess as lenders can be departments don't always communicate, which is why these things can happen. To understand what a service release is, it is important to understand the difference between a loan servicer and an investor. An investor is the entity who owns your loan. Most likely, it is a government entity either Fannie Mae or Freddie Mac. The loan servicer takes care of administrative duties associated with servicing your loan like collecting payments or sending you monthly statements. When the servicing release occurs, the servicing rights to your loan are sold to another entity. In your case, your loan servicer was Bank of America and your loan servicing rights were released to another party. As far as what it means for a Knoxville short sale, the process can be extremely irritating because you essentially have to start the whole process over again. Unfortunately, every lender is a little bit different as far as how they handle short sales. There is no stopping from starting a short sale again, you'll just need to have the patience to see it through. Are you facing foreclosure on your Knoxville home? If there is anyway my team and I can assist you, please let us know. We've helped many Knoxville homeowners avoid foreclosure on their Knoxville homes, and all of our services are done at absolutely no cost to you. You can contact me at 865-696-9002 or via email at [email protected].

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