- Lenders quote a time of 7-10 days (some say up to 20 days) for a transfer to be complete. As a result borrowers and authorized third parties may not be able to access the loan right away with the new servicer
- Although some lenders say that all documents associated with the account are transferred, don't be surprised if you have to resubmit documents to the new servicer
- Short sale negotiators may have to submit new lender-specific forms, like lender-specific authorizations or financial worksheets
To prepare for the chance of a service release, homeowners should continue to open all mail associated with the loan(s). Lenders will send notices to inform of a future transfer date. Homeowners should inform the Short Sale negotiator of any impending transfer and should supply new servicer contact information and new loan number as soon as they are available. The Short Sale negotiator should contact the new servicer as soon as possible to determine what is required in the new servicer's short sale package.
It is important to remember that while service transfers can slow down the process of negotiating a short sale, transfers are normal and happen frequently. With a little extra patience, the parties involved in the short sale will be able to persevere after a loan transfer.
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions. Thank you for allowing us to send you this email.
William D. Tucker, III
Charlottesville, VA 434-973-7474 | Lake Monticello (Palmyra, VA) 434-589-3636