Post Short Sale Agreement Troubles
July 27th, 2010
Today, Kevin and Fred have decided to embrace a topic that they have never covered previously. Furthermore, they haven’t ever talk about it in one of their Crush It lessons. The topic is post short sale approval troubles. Basically, you already have an approval from the lender and troubles happen. How do you deal with them? What is truly happening out there?
With a transaction that closed yesterday, our escrow officer was looking to get the last HUD approval from our negotiator at Citi. It was closing today. The negotiator denied the final HUD in spite of the fact that all of the conditions were met. The worst part was that the negotiator wasn’t willing to verbalize in plain english to clarify that the HUD had to look a particular way. It is central to note that just because the contract is approved, it does not mean it is completed.
Appreciate that your approval letter at most lenders says 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 another post approval crisis recently, with an approval from the coordinator. We scheduled the closing. About a week into the closing, we got a telephone call from another negotiator that introduced themselves as the the new negotiator for this file. She requested 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 When we told her that we already had the file approved, she let us know that that approval was no longer applicable because they never got the file approved from the backer.
This is the sort of stuff that is happening 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 desire 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.