Today, on this freaky Friday, we would like to discuss the importance of reading short sale approval letters and verifying that the language in the approval letter isn't compromising the your client.
We bring this up because of a file that Kevin was working on several weeks ago. The buyer cancelled during the inspection period. So, Fred took over the file and got a new offer on the property. While reviewing the new approval letter Fred noticed that the letter said "in receipt of this money we are releasing the lien only..."
While Kevin makes a few mistakes, he would never send out an approval letter with that kind of language. Looking at the approval letter with the first buyer, the bank accepted the offer to satisfy the loan in full. Does that make sense? Also, in the second offer, the bank was getting an additional $8,000. Who does that?
We think this may be a bank strategy to retain the right to pursue deficiencies. There are many agents out there that would be happy with simply getting the approval letter. The banks are trying to take advantage of the short sale agents that don't check on this.
Honestly, the banks are in the business of making money. Hence, this tactic makes sense from the bank point of view. Agents need to be on top of their game in reviewing these documents. If it isn't satisfactory or in the best interest of your client, you need to be prepared to fight the bank. It's hard work, but your client deserves it.
Come back next week because we will have some episodes filmed from Las Vegas. We are teaching in Las Vegas right now. If you are in Las Vegas and want to play golf or attend a charity concert on Sunday, check out KWCares.org
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