Post Short Sale Approval Problems
July 27th, 2010
Today, Kevin and Fred have decided to cover a topic that they have never covered previously. Moreover, they haven’t ever discussed it in one of their Crush It courses. The topic is post short sale approval troubles. In essence, you already have an agreement from the lender and troubles crop up. How do you deal with them? What is truly happening out there?
With a transaction that closed yesterday, our escrow official was looking to get the last HUD approval from our negotiator at Citi. It was closing today. The negotiator denied the final HUD despite the fact that all of the conditions were met. The worst part was that the negotiator wasn’t willing to talk in plain english to make clear that the HUD had to look a specific way. It is critical to note that just because the contract is approved, it doesn’t mean it is completed.
Understand that your approval letter at most lenders states that they have to approve of the final HUD. Because the approval letters do not indicate what they are paying and what they are not paying, you may not know if they will approve it.
We had one more post approval predicament recently, with an approval from the coordinator. We scheduled the closing. About a week into the closing, we got a call from a new negotiator that introduced themselves as the the new negotiator for this file. She asked for a number of papers so that she could get the file approved. When we told her that we already had the file approved, she let us know that that agreement was no longer valid because they never got the file approved from the backer.
This is the sort of things that is happening out there that you will not here in a ordinary short sale education lecture. The point is that there are post approval troubles and you are going to have to deal with them if you want to be victorious in this business
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Posted in Short Sale
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.