As long as the homeowner owns the property the lender or loan servicer CANNOT discuss anything with anyone else without third party authorization. It doesn’t matter if the home is in foreclosure or not. It can be the day BEFORE the trustee sale, it still cannot be done.
Think about it, your lender could discuss your loan with anyone at anytime for any reason otherwise. The reasons posted above make sense but there are a hell of alot of other more reasons not to let lenders discuss loans with third parties. Don’t just blame the lenders either, the govt has added bundles of regulatory issues that the lenders are going along with.
So yes while complaining that the lenders not working with interested parties directly for short sales makes sense, not allowing the lenders to discuss personal loans with anyone makes more sense.
You guys want the home? Go knock on the homeowners door and try to work a deal with them or convince them to give you 3rd party authorization to go to the lender. Even then, the lender will not “work with you” directly. The short sale fraud rules are such that the home will need to be sold as an arms length transaction and will require a realtor and will require the standard path through the short sale process conduction by the lender or servicer.
Nothing is preventing you from doing that. The system stinks now but if you think it is going to change you are dead wrong. Once more we come full circle to be proactive and try to work with the rules in place rather then wish for something that obviously will not happen such as rules that make sense or will work in favor for the common person to buy a home.
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Now once the trustee sale has occurred and the deed reverts back to the beneficiary then they can do whatever they want with the home. The fact that they do not deal with sellers is a drag but again, they avoid SUBSTANTIAL legal issues by NOT dealing with consumers. Maybe they do bulk deals but they liquidate properties in the way that MITIGATES RISK for them.
