Post Short Sale Approval Problems
Today, Kevin and Fred have decided to cover a topic that they have never covered in the past. Moreover, they haven’t ever discussed it in one of their Crush It classes. The topic is post short sale approval troubles. In essence, you already have an agreement from the bank and troubles crop up. How do you cope with them? What is actually happening out there?
With a transaction 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 final HUD in spite of 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 explain that the HUD had to look a particular way. It is critical to note that just because the contract is approved, it doesn’t mean it is closed.
Recognize that your approval letter at most lenders 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 may not know if they will grant it.
We had another post approval trouble recently, with an approval from the coordinator. We planned 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 papers so that she could get the file accepted. When we told her that we already had the file approved, she let us know that that approval was no longer valid because they never got the file accepted from the backer.
This is the type of things that is happening out there that you will not here in a standard short sale education session. The point is that there are post approval troubles and you are going to have to deal with them if you desire to be victorious in this business.
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Tags: foreclosure, loss mitigation, short sale