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. Moreover, they haven't ever discussed it in one of their Crush It lessons. The subject is post short sale approval problems. Basically, you previously have an approval from the bank and problems occur. How do you cope with them? What is truly occuring out there?
With a deal 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 closing HUD despite the fact that all of the terms were met. The most horrible 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 important to note that just because the deal is approved, it doesn't mean it is completed.
Recognize that your approval note at most banks says 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 might not know if they will grant it.
We had one more post approval difficulty 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 folder. She requested a number of documents so that she could get the folder accepted. When we told her that we previously had the folder accepted, she let us know that that approval was no longer applicable because they never got the folder accepted from the backer.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 regular short sale education session. The point is that there are post approval problems and you are going to have to deal with them if you desire to be successful 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.