Is it legal for me to make a payment and the lender still report a delinquency?
Question Details:
Have approval for short sale while being current on my loan. Reason - forced relocation. After approval while waiting for closing made another payment. Lender will not apply to my loan and will report 30-day delinquent. Says investors require 30-day delinquent to close on short sale but approval letter does not state this. In the meantime, lender is holding the payment that I made. What are my rights and how can I rectify this?
Real Estate Law Answers
Lenders usually require delinquency on loan to approve short sale. If you are current and have been making payments, then you have a choice to make- short sale approval and being reported 30 day late OR getting payment reported on time and walking away from short sale. If accepting payment and crediting your account for having received it interferes with their internal guidelines for short sale, you can appreciate what they are doing.
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