Post Short Sale Approval Problems
July 27th, 2010
Today, Kevin and Fred have decided to embrace a topic that they have never covered before. In addition, they haven’t ever talk about it in one of their Crush It courses. The topic is post short sale approval troubles. Essentially, you previously have an approval from the bank and troubles crop up. How do you handle them? What is actually occuring out there?
With a transaction that closed yesterday, our escrow officer was looking to get the final 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 most horrible part was that the negotiator was not willing to articulate in plain english to clarify that the HUD had to look a particular way. It is crucial to note that just because the transaction is approved, it doesn’t mean it is completed.
Recognize that your approval note at most lenders says that they have to approve of the final HUD. Because the approval letters don’t identify what they are paying and what they are not paying, you might not know if they will grant it.
We had one more post approval difficulty of late, with an approval from the controller. We planned the closing. About a week into the closing, we got a call from a different negotiator that introduced themselves as the the new negotiator for this folder. She asked for a number of papers so that she could get the folder accepted. When we informed her that we previously had the folder accepted, she let us know that that approval was no longer valid because they never got the folder accepted from the investor.
This is the type of things that is occuring out there that you will not here in a ordinary short sale education session. 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
If you have questions, get your Short Sale questions answered by Short Sale Specialists.
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For more videos on short sales check out Kevin and Fred on the Short Sale Power Hour. Video for Short Sale Specialists.
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.