JUST KEEP IT SIMPLE
All Kathryn wanted to do was keep it simple. Her husband having passed away, she decided to move to another city. She kept her home and rented it out, not knowing for sure that someday she wouldn't want to move back. The rent money allowed her to make her mortgage payments. After the tenant moved out however, she decided it was time to break all ties with the home and sell it.
NOTHING IS EASY
Unfortunately, as Kathryn experienced nothing is ever easy when it comes to dealing with one's mortgage servicer. Being "upside down” on her loan; that is, owing more than she could sell the home for, required that she get the consent of the servicer to sell the home. At first, the servicer was cooperative, and sent her the necessary paperwork, which she immediately completed and sent back. The servicer even acknowledged her application was complete and was under review. It wasn't long until problems developed. She received a letter threatening foreclosure from a law firm hired by the servicer. That letter was followed by a foreclosure Complaint, even though Kathryn never received an answer to her request for a short sale.
One may wonder why the servicer wouldn't allow Kathryn just to sell the home on her own, rather than force her into foreclosure, where it would sell for considerably less. That would be a very good question. However, Kathryn's servicer's actions are not only nonsensical, but illegal. Federal law prohibits a foreclosure filing when the servicer is working with the homeowner on other alternatives. So when it filed the foreclosure before giving Kathryn an answer on her request for a short sale, her servicer violated the law. This renders the foreclosure case subject to dismissal. I'm sure this matter will be worked out, but it vividly demonstrates once again the hypocrisy with mortgage servicers.