$125 to keep us in the game--legit or not?
i am dealing with a 2nd (Citifinancial) who said that they need the h/o to pay $125 or else the loan is going to be sent to legal and they will not be able to negotiate with me after it goes there. so to keep it in the home office, i need to get the h/o to pay $125 of what they owe. is this i gimmick by the collections dept to get something out of the h/o or is it legitimate? please help!
Mortgage loan servicing collection clerk will say/do anything to maintain their collection quotas.
Step back, and think about this for a moment.
When do you think you will be most likely to negotiate a short payoff with the mortgagee? When the loan is delinquent, but not yet in default, and still performing? Or, when the loan is officially classified as trouble...
The collections clerk isn't empowered to negotiate a short sale, only to coerce the Borrower into sending in $$$$.
Usually, in larger organizations, a loan in default is first sent to their loss mitigation
department... Then, if the situation can't be resolved, it's sent to their foreclosure department.
That process is quite dynamic, and can change on a daily basis. Depends entirely upon the mortgagee, and their philosophy of the day.
To answer your question, I wouldn't send in the $125 unless it was to extend a rapidly approaching closing date for a deal already approved...
shortsalepro:
thank you very much for your response. i see what you are saying. it makes a lot of sense. i thought that was the case, but it helps tremendously to have it verified by a pro. very grateful for your advice and wisdom, sewa