Green Tree Servicing, the owner of the second lein on my mortgage, is stalling the approval of a Short Sale. They will not accept the monies that are being offered by the owner of the first lein, One West Bank. I wrote my local Congressman; the letter was forwarded to Freddie Mac and Green Tree. I received a call from Freddie Mac stating that what Green Tree was asking me to do was "not within regulations". When the letter ended up in the hands of a representative from Green Tree, I received a call telling me that he would get the money I owe either "voluntarily or involuntarily". Above is the link to an article from my local paper. Below is the letter I wrote to my Congressman.
I am a homeowner that has fallen into unfortunate circumstances that prevent me from making the payments on my mortgage. I am attempting to be a responsible consumer by short selling my home instead of walking away, hoping that this will not only allow me to become a homeowner again in the future, but also maintain the integrity of my neighborhood that I have grown to love so much. I have come into resistance with a mortgage servicer that is requesting that I violate RESPA guidelines. I am requesting your assistance in contacting that servicer so that I can proceed with my short sale.
My first mortgage holder is One West Bank. They service the loan for Freddie Mac. Freddie Mac has approved the short sale with an amount of $3000 going to my second mortgage with Greentree. The buyer has offered to pay the $2000 difference, however Freddie Mac guidelines prohibit any contributions by additional parties to Greentree (not that we have any additional funds to give). Greentree is refusing to accept the $3000 to release the lien against the property. Instead, they are asking that I (or the Buyer) send them $4450 in advance so that the funds will not have to show on the HUD-1 Settlement Statement, and then they will issue a short sale approval for the $3000. I would still be responsible for the remaining balance of the debt.
It’s completely unethical for a mortgage servicer to ask me to hide the payment of funds made to them. It’s even more unethical that I would be forced into a foreclosure because of such practices. Greentree will not listen to my Realtor or me. So I need someone to stand up for me that they will listen to.
My loan information is above. This letter can be used as authorization to speak on behalf. If you need additional information, feel free to contact me. I thank you in advance for your time.