Post Short Sale Approval Troubles
July 27th, 2010
Today, Kevin and Fred have decided to cover a topic that they have never covered in the past. Additionally, they haven’t ever discussed it in one of their Crush It lessons. The topic is post short sale approval troubles. In essence, you previously have an approval from the bank and troubles come up. How do you deal with them? What is really occuring out there?
With a transaction that closed yesterday, our escrow representative was looking to get the closing HUD approval from our negotiator at Citi. It was closing today. The negotiator denied the final HUD despite the fact that all of the terms were met. The worst part was that the negotiator wasn’t willing to articulate in plain english to make clear that the HUD had to look a specific way. It is essential to note that just because the transaction is approved, it does not mean it is completed.
Realize that your approval note at most banks 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 may not know if they will approve it.
We had another post approval problem recently, with an approval from the coordinator. We planned the closing. About a week into the closing, we got a telephone call from a new 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 When we informed her that we previously had the folder accepted, she let us know that that approval was no longer applicable because they never got the folder accepted from the backer.
This is the sort of stuff that is occuring out there that you will not here in a ordinary short sale teaching lecture. The point is that there are post approval troubles and you are going to have to deal with them if you desire to be successful in this industry
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.