Post Short Sale Agreement Problems
July 27th, 2010
Today, Kevin and Fred have decided to cover a topic that they have never covered previously. Additionally, they haven’t ever discussed it in one of their Crush It courses. The topic is post short sale approval problems. In essence, you already have an approval from the bank and problems crop up. How do you handle them? What is truly happening out there?
With a deal that closed yesterday, our escrow representative was looking to get the last HUD approval from our negotiator at Citi. It was closing today. The negotiator denied the closing HUD in spite of the fact that all of the provisions were met. The worst part was that the negotiator was not willing to articulate in plain english to explain that the HUD had to look a particular way. It is vital to note that just because the transaction is approved, it does not mean it is completed.
Recognize that your approval letter at most lenders states that they have to approve of the final HUD. Because the approval letters don’t specify what they are paying and what they are not paying, you may not know if they will grant it.
We had one more post approval trouble of late, with an approval from the controller. We planned the closing. About a week into the closing, we got a call from another negotiator that introduced themselves as the the new negotiator for this folder. She asked for a number of documents so that she could get the folder accepted. When we told her that we already had the folder accepted, she let us know that that approval was no longer applicable because they never got the folder accepted from the backer.
This is the kind of stuff that is happening out there that you will not here in a ordinary short sale teaching seminar. The point is that there are post approval problems and you are going to have to work with them if you desire to be successful in this business
If you have questions, get your Short Sale questions answered by Short Sale Specialists.
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Fred Weaver is a founding co-owner of Group 46:10. He has been working in the financing/real estate business for over 7 years. Fred began his real estate career by working for a large wholesale bank as a processor and rate/lock specialist for home mortgages. After 2 years in the business, Fred transferred from the banking side of home loans to the mortgage side. While on the mortgage side of financing, Fred gained experience originating mortgages and processing files for Morgan Capital of Arizona, Inc.
Kevin is a founding co-owner of Group 46:10. He began working in the real estate business in 2007 after spending 8 years working in the finance industry for companies such as Bank One, Green Tree Financial, & GE Capital.