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Washington Mutual Won’t Waiver
I recently had a Fort Walton Beach FL Short Sale approved by Washington Mutual (WAMU).  In this case, WAMU was the junior lien, the first was Citi Mortgage.   There was enough from the sale proceeds to satisfy Citi's mortgage balance, so the only approval necessary was from WAMU.  As with all Short Sales, we know to provide a preliminary settlement statement (HUD) with the package to the seller's lender. This is a guide upon which the lender bases its approval. As a rule and for the sake being conservative, I instruct the title agent preparing the HUD to overestimate the prorations. Why? In Florida, property taxes are paid one year in arrears, so there is typically a credit from seller to buyer at closing.  (In some other states, property taxes are paid in advance.)  So in order to prepare for a long-delayed lender approval, I may use a closing date four to five months out.  The settlement statement will show the seller crediting a higher amount of taxes to the buyer. That way there won't be a last-minute problem with proceeds to the Short Sale lender being too low to meet the amount on the approval letter.  They will usually get more ... more

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