Question From Homeowner: “Why won’t my lender let me avoid foreclosure?”


St. Petersburg FL – The Stop Foreclosure Institute recently received a question from Arman.

Here is his question:

I am a Seller trying to avoid foreclosure. My agent has a buyer and his offer is with the lender from last seven months. Now the lender told us that Fannie Mae investor refused the short sale offer and the house is going to foreclosure early next week. The lender’s own appraisal shows the house is worth $120K. The offer we have is for $150K. I told the lender that it is unlikely they will receive and offer for 150k after the foreclosure. She replied and said, ‘We or some of our investors will buy it!!!’ I don’t want a foreclose on my record. Is there anything I can do to stop the foreclosure? Thanks a lot for your help…Arman

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

Arman gave me more details. I will relate them here and then tell you what I recommend that he do. He told me the loan is owned by Fannie Mae, and a third party lender is “servicing” the loan for them.

I have negotiated many short sales. The only reason a lender should turn down a short sale is when their numbers (from an actuarial viewpoint) show that they will reduce their losses with a foreclosure. That has always been the case on any short sale I have ever negotiated. (Or I should say most of them. Some have been rejected for other reasons, but they are almost always monetary reasons.)

Here was my recommendation to him:

Step #1: Call up and demand a written letter explaining why they are declining the Short Sale offer.

Step #2: Write down what your projected damages will be if the property is foreclosed upon instead of sold as a Short Sale.

Step #3: Call up the company handling the loan servicing for Fannie Mae. (Remember, the loan servicing company is not your lender. They are paid by Fannie Mae to do their job in a competent manner.) Tell them if they reject the Short Sale for no reason and the house is foreclosed, then you will be suing them for the specific damages you outlined for them in Step #2.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at I will contact you for a free consultation. When we talk, I will explain how the process works in detail. If you prefer, then you can call me directly at 727-599-5418.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our St. Petersburg Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Jennie Blackburn.

Jennie is a Real Estate Agent at Blackburn Investors Realty.

Phone: 727-599-5418.

Rebuilding lives…one home at a time.

View My homes for sale at

Jennie Blackburn specializes in loan modification assistance and short sales in St. Petersburg Florida. St. Petersburg Loan Modification Help, St. Petersburg Short Sales. St. Petersburg Short Sale Realtor. Short Sale Realtor. St. Petersburg FL Short Sales. St. Petersburg Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Jennie Blackburn’s personal views and do not reflect the views of Blackburn Investors Realty. This information on Question from homeowner: I want to avoid foreclosure, but my lender won’t let me is provided as a courtesy to our viewers to help them make informed decisions.


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