Post Short Sale Agreement Problems
July 27th, 2010
Today, Kevin and Fred have decided to cover a subject that they have never covered before. In addition, they haven't ever talk about it in one of their Crush It courses. The subject is post short sale approval troubles. In essence, you previously have an agreement from the bank and troubles happen. How do you handle them? What is truly occuring out there?
With a transaction that closed yesterday, our escrow official was looking to get the closing 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 speak in plain english to make clear that the HUD had to look a precise way. It is essential to note that just because the contract is approved, it does not mean it is closed.
Realize that your approval letter at most lenders says that they have to approve of the final HUD. Because the approval letters do not specify what they are paying and what they are not paying, you might not know if they will approve it.
We had one more post approval difficulty recently, with an approval from the controller. We scheduled the closing. About a week into the closing, we got a phone call from another negotiator that introduced themselves as the the new negotiator for this file. She requested a number of documents so that she could get the file approved. When we informed her that we previously had the file approved, she let us know that that agreement was no longer applicable because they never got the file approved from the investor.
This is the sort of stuff that is occuring out there that you will not here in a normal short sale teaching lecture. The point is that there are post approval troubles and you are going to have to work with them if you want 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.