Post Short Sale Approval Problems
July 27th, 2010
Today, Kevin and Fred have decided to cover a subject that they have never covered in the past. In addition, they haven’t ever discussed it in one of their Crush It courses. The subject is post short sale approval problems. In essence, you already have an approval from the lender and problems occur. How do you handle them? What is actually happening out there?
With a transaction that closed yesterday, our escrow official was looking to get the final 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 provisions were met. The most horrible part was that the negotiator wasn’t willing to verbalize in plain english to make clear that the HUD had to look a precise way. It is critical to note that just because the transaction is approved, it does not mean it is closed.
Appreciate that your approval note at most lenders states 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 may not know if they will approve it.
We had another post approval difficulty of late, with an approval from the coordinator. We scheduled the closing. About a week into the closing, we got a shout from a different negotiator that introduced themselves as the the new negotiator for this file. She asked for a number of documents so that she could get the file accepted. When we told her that we already had the file accepted, she let us know that that approval was no longer valid because they never got the file accepted from the investor.
This is the type of stuff that is happening out there that you will not here in a regular short sale training lecture. The point is that there are post approval problems and you are going to have to work with them if you desire to be successful in this industry
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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.