Post Short Sale Approval Troubles
July 27th, 2010
Today, Kevin and Fred have decided to embrace a subject that they have never covered previously. In addition, they haven't ever discussed it in one of their Crush It classes. The subject is post short sale approval problems. Essentially, you already have an approval from the lender and problems arise. How do you handle them? What is actually occuring out there?
With a deal 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 despite the fact that all of the conditions were met. The worst part was that the negotiator was not willing to articulate in plain english to clarify that the HUD had to look a specific way. It is important to note that just because the deal is approved, it does not mean it is closed.
Recognize that your approval note at most banks says that they have to approve of the final HUD. Because the approval letters do not state 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 problem of late, with an approval from the coordinator. We scheduled the closing. About a week into the closing, we got a shout 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 When we informed her that we already had the folder accepted, she let us know that that approval was no longer valid because they never got the folder accepted from the investor.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 stuff that is occuring out there that you will not here in a standard short sale training lesson. The point is that there are post approval problems and you are going to have to work 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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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.