Post Short Sale Approval Problems
July 27th, 2010
Today, Kevin and Fred have decided to embrace a topic that they have never covered in the past. Also, they haven't ever discussed it in one of their Crush It courses. The topic is post short sale approval problems. In essence, you previously have an agreement from the lender and problems happen. How do you handle them? What is really occuring out there?
With a deal that closed yesterday, our escrow representative was looking to get the final HUD approval from our negotiator at Citi. It was closing today. The negotiator denied the closing HUD despite the fact that all of the provisions were met. The worst part was that the negotiator wasn't willing to talk in plain english to clarify that the HUD had to look a precise way. It is central to note that just because the transaction is approved, it doesn't mean it is completed.
Understand that your approval letter 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 might not know if they will grant it.
We had another post approval problem of late, 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 approved. When we told her that we previously had the folder approved, she let us know that that agreement was no longer valid because they never got the folder approved from the investor.
This is the type of things that is occuring out there that you will not here in a regular short sale training seminar. 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.