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Short Sale Approved and Seller just made their December payment!

By Cathy McAlister

Real Estate Broker/Owner with Cathy Ashley McAlister, GRI CDPE - Broker / Sacramento

December 11, 2011 03:14 PM

Short Sale Approved and Seller just made their December payment!

I am absolutely tickled about my seller's approval. We received the short sale approval last week. One loan, HAFA program, valid hardship PLUS the seller keep the payments current throughout the entire process. In fact, she just paid her December payment.

Whether right or wrong, this seller wanted to be absolutely current until the month the short sale was closed. Who Says you have to be delinquent? Seller's; please do not believe everything the lender's tell you.... not everyone has to be delinquent in order to get a short sale approved. Not all situations are alike, but this could be your scenario and the lender will not tell you.

With all the challenges to short sales.... this is a good thing! If you are looking for short sale guidance in the Sacramento area, give us a call, I will be glad to help. Cathy McAlister Broker-Owner California Living Real Estate 916-708-6995

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Ted J. Macy

Top Agents Atlanta Metro - Milton, GA

Cathy, I sure hope you were the one who encouraged the seller to stay current.

Dec 11, 2011 03:37 PM

Cathy McAlister

Cathy Ashley McAlister, GRI CDPE - Broker / Sacramento - Sacramento, CA

Sacramento DRE#00648507

Ted: The short answer... Never. We are always asked by seller's if they should quit making their payments and we always tell them that we will not give them an instruction on their payment - it has to be a personal choice for each borrower. Some homeowners just cannot pay but if they can AND want to pay, they should be able to pay. For lenders to instruct a borrower to go delinquent in order to be considered for a short sale should be outlawed.

Dec 11, 2011 03:43 PM

Steve Queen

Bennett Realty Solutions - Bowie, MD

Chosen Realtor for Bowie And Laurel

Per FHA laws your client can actually purchase right after settlement if she can show clear reason for the short sale. I was told of one that was passed by FHA on a colonial and it was because the husband could not go up the stairs any more. My last was because of loss of income and I have two now that are current and we are doing a short sale. Most don't know they can purchase immediately after a short sale if current. The still think they must wait 3 years.

Dec 11, 2011 04:57 PM

Steve: I have heard the same thing. The sticky wicket is while the government might be willing to re-insure on a new loan for a totally current short sale seller - most lenders are still reluctant to actually lend. In this particular case, the seller is not in a position to buy right now and I believe would rather wait it out for awhile. And that's OK.

Dec 11, 2011 05:33 PM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Cathy

Congrats on the approval. Some sellers are really afraid to miss their payments and we, as realtors can't and shouldn't recommend that they miss making those payments. You just proved that the seller doesn't have to be delinquent to have a short sale approved.

See you Tuesday :)

Dec 11, 2011 07:12 PM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

Oh, I thought you meant this was a Cooperative Short Sale like mine was. I am trying to figure out what constitutes the difference between a $2500 incentive and a $3000 incentive on a Bank of America Cooperative Short Sale. But yeah, HAFA's pay $3,000 and the criteria is you have to be in danger of default, not in default. Congrats, Cathy.

So, you are meeting up with Pacita? Say hello to her for me. I am jealous. I sold her aunt's home in Foothill Farms -- very nice family!

Dec 12, 2011 02:32 AM

Pacita: I think the decision to stop payments is the hardest one in the short sale process - and seller's know they have to make that decision on their own. This seller did NOT want to miss a single [payment - I commend her.

Elizabeth: I am actually going to the AR meet-up tomorrow - would you like to join me? It would be fun. This will be first time and I thought I would just check it out.

Dec 12, 2011 03:25 AM

Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

I like this story, Cathy. . .I like it a lot! What I like most is that the short-sale was accomplished without the seller going behind on payments. I was listening to a local radio station show last week, and an attorney stated that the servicing companies from the banks often suggest to sellers that they get behind to accomplish a short-sale or try for a modification. . .The reason they do so is because the servicing company makes more money on servicing a mortgage that is in distress than one that is not. It also contributes to the delays and beating around the bush, while banks fail in being expeditious in getting the job done. If sellers or homeowners are experiencing delays while trying to get a short-sale or a modification, the "distress" label that the servicing company is milking, is possibly contributing to that! There outta be a law:-(

Dec 12, 2011 09:28 AM

In the 50's and 60's, back side deals like that would be considered racketeering. Strong words but I cannot get beyond any point where making people go late is justified. Instead of demanding money for protection, they say don't pay and we might protect you through modification or short sale approval. I so agree Myrl, there outta be a law. In the meantime, lets spread the word that it can be done without being delinquent.

Dec 12, 2011 04:52 PM

Short Sale Approved and Seller just made their December payment!

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