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Diary of a Short Sale- Day 2

By
Real Estate Agent with Great Life RE 313389

Short sales are a very common phrase now a days, but few people understand the actual ins and outs of what short sales are and how they work.  Therefore, we have decided to outline and blog about our experience in working a short sale.

Please check back daily for a real-time short sale negotiation as it unfolds. 

Day 2- Diary of a Short Sale

After an eventful and stressful Day 1 (click here to read Diary of a Short Sale Day 1), today we received short sale paper workthe last of our documents that were needed to complete the short sale package to send over to the lender.

Our total package ended up being almost 100 pages long and included, as required by the lender Wells Fargo the following items:

• Hardship letter from Seller (them explaining why they can not afford the mortgage and requires a short  sale- they were told to include any documentation that supported their hardship as well- i.e. divorce papers, court notices, medical statements, etc...)

• Authorization to Release Information (this was already sent in and confirmed to be on file, but we sent it in again anyway just to be safe)- had to include: borrower's name, property address, loan/account #, borrower's signature, date, last 4 digits of borrower's Social Security #, and our contact information and office information.

• Fully executed listing agreement

• Fully executed purchase contract with all pages initialed by both Seller(s) and Buyer(s)

• Buyer pre-qualification of proof of funds letter

• Net HUD sheet

• Signed and dated financial worksheet- completed by Seller- listing all monthly expenses.

• 2008 W2 (included)

• Unemployment stubs -last 30 days (included)

• And as a bonus from us- marketing efforts, descriptions of how it was advertised, a CMA for the area, and copies of the previous MLS brief from the last year it was on the market, a cover letter, and summary sheet for the offer.

By late this morning, the package was finished, complete with a nice organized table of contents- footers on the bottom of every page that contained the loan number (in case a page got lost) and we were ready to fax it out.

An attempt was made to have actual phone contact with the Short Sale Dept, but all we ended up talking to after several attempts was the department's answering machine.

Then we reached another snag, it took hours for us to get through to the fax line- supposedly this line gets backed up.  After a multitude of attempts of scanning in and faxing the near 100 page document it appears to have successfully gone through- an attempt to follow up with a confirmation phone call was attempted, but once again we only talked to the answering machine.

******Lesson of the Day:  We however, learned a very important thing today- when dealing with a large company like Wells Fargo try sending the faxes in non-peak or off hours or you may spend hours doing a simple task that should only take minutes.

 

knoxville green realtor

Instantly search all properties for sale in the Knoxville TN and surrounding areas now!
www.HomesForSaleKnoxville.com

Visit Christine McInerney and Jennifer Halinkowski with Keller Williams Realty on-line at:
www.HomesForSaleKnoxville.com and www.KnoxvilleReal-Estate.com

Office: (865) 694-5904
Christine (865) 237-5289 and Jennifer (865) 621-3658
Mail to: McIn-Kowski@HomesForSaleKnoxville.com

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 Knoxville TN Realtor

 

Comments (18)

Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

I actually have not sent in the marketing materials; I've found that the banks I've dealt with do not care too much about that stuff. Have you had banks ask for that information>

May 20, 2009 08:35 AM
Marcus Valdez
Berkshire Hathaway Rocky Mountain Realtors - Fort Collins, CO

I am really glad your doing the Short Sale Diary. Mine would look like this. 

Diary of a mad men (aka working a short sale with Bank of America (countrywide)

Day 257.

Our ship has run dry of supplies and foreclosure is about to overtake our small ravaged crew of battle tired agents, negotiators and title people.  we have not had a call back from countrywide B of A or whatever they are called now in months.  They did post a nice press release about how wonderful they are to work with.   We pray daily for the end to come but they just keep dragging our hope along.  if this short sale takes my life tell my wife i love her very much.

May 20, 2009 08:40 AM
Marcus Valdez
Berkshire Hathaway Rocky Mountain Realtors - Fort Collins, CO

Should say mad man but i am so battle beaten i can't spell.

May 20, 2009 08:41 AM
Chris Olsen
Olsen Ziegler Realty - Cleveland, OH
Broker Owner Cleveland Ohio Real Estate

Hi Christine and Jennifer -- What a huge mess (Wells Fargo I am speaking of).  Your clients are lucky to have such a knowledgable and dedicated team such as yours.

May 20, 2009 09:06 AM
Christine McInerney
Great Life RE - Knoxville, TN
The McInerney Team, Knoxville TN Homes For Sale

Melissa- I am not really sure if the marketing materials will work.  I found some found some posts and some of the shortsale companies that I spoke to at the NAR Expo in Orlando, FL said that they did this so I figured that it couldn't hurt-  my hope is that it will further prove that the property was marketed to the fullest potential and that they would be insane to turn down our offer and foreclose instead....I will tell you later if it works and did any good.

May 20, 2009 10:03 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

You should have no problem with this short sale. Wellls Fargo is very good to work with. My last short sale with WH closed in 3 weeks!!! Your diary should be interesting to read. Good luck.

May 20, 2009 10:04 AM
Christine McInerney
Great Life RE - Knoxville, TN
The McInerney Team, Knoxville TN Homes For Sale

Marcus- very funny (in a terrible and HIGHLY unfortunate way though).  I hope that we don't make it to day 257!

May 20, 2009 10:04 AM
Christine McInerney
Great Life RE - Knoxville, TN
The McInerney Team, Knoxville TN Homes For Sale

Byrant- we are hoping that it will be quick as this is a very good offer and I think they would be insane to pass it by.  My only fear is that short sales in my market area are not very common so would hate for the Buyers to move on or get tired of waiting.

Any special tips on how you got it to close in 3 weeks?

May 20, 2009 10:06 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Christine, unfortunately sometimes their fax machines are BUSY all day and TURNED OFF at night!  That is an experience that one of my clients had.  They claimed they didn't have another fax number.  But we tried ALL DAY LONG and never got through.  We ended up having to MAIL the package.

One suggestion is to e-FAX rather than regular fax.  The e-fax will send the e-docs out for you automatically, it will keep trying several times, and give you confirmation that it was received.

Even after that, be prepared for the bank to tell you they "didn't get it" and you'll have to fax over 3-5 more times before they say they "got it".  Yikes!

May 20, 2009 10:09 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Christine and Jennifer - Hope the day doesn't end with - "You faxed it to the wrong department.  That number is only for Letters of Authorization".

May 20, 2009 11:13 AM
Diane Parker
Coldwell Banker Sea Coast Realty - Wilmington, NC

I've faxed per the bank's instructions, mailed a copy just in case, re-faxed caused they couldn't locate the documents, and learned that it sometimes takes up to two weeks to get the documents scanned into their system.  Through short sales, I'm learning extreme patience.  I must say some banks are easy.  I try to provide all documentation up front to push things along.

May 20, 2009 11:18 AM
Edith Schreiber
Luxury Homes, Move Up Buyers, 1st Time Homebuyers, New Construction - Frisco, TX
Dallas Area Real Estate

Thanks for the valuable info....

I was a bit confused when you wrote that you submit a "pre-qualification" letter as opposed to a "pre-approval" letter.

With all the other rules, I am very suprised that the bank would accept something less than a pre-approval...???

I look forward to your next chapter! :0)

Edith Schreiber - Dallas, Texas

May 20, 2009 02:06 PM
Christine McInerney
Great Life RE - Knoxville, TN
The McInerney Team, Knoxville TN Homes For Sale

Edith- We did submit a pre-approval letter, but their short sale packet said that needed a pre-qualification letter- it was strange to me as well.

May 20, 2009 02:21 PM
Lynn Pineda
eXp Realty - Boca Raton, FL
Real Estate Promises delivered in SE Florida

What a great idea for a post. It definately sounds like you have your "I's" dotted and your "T's" crossed towards getting the desired result of an approved short sale - way to go!

May 20, 2009 02:42 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

I'm going to enjoy watching this unfold.  If you can get through to someone, you may be able to get another fax number; sometimes they'll give it to you.

Additionally, expect you may have to fax it more than once before it actually "arrives."

May 20, 2009 04:31 PM
Paul Francis
Francis Group Real Estate - Las Vegas, NV
Las Vegas Real Estate Agent - Summerlin Homes

Lol! I'm taking a break between the final review of four short sale packages to submit in the early A.M. while the lenders fax machines are slow..

 

May 20, 2009 08:01 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

If you haven't taken the CDPE course...do it...most of your hurdles will disappear ....you will know what to expect and how to handle it...every transaction is different...Wells is a piece of cake usually....good luck !

May 21, 2009 12:07 AM
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

What Sally & david have to say may have some merrit about the CDPE course.

Portsmouth NH Real Estate

May 21, 2009 04:16 AM