We recently closed on another short sale transaction in Northwest Indiana.
Every Short Sale is different. Variables affect the length of time it takes to successfully close this non-traditional real estate transaction.
What happens if there is a task requested by the Short Sale Lender that a discerning REAL Estate Broker knows is NOT possible to complete?
You get this repetitive message via email every few days:
Please be advised that you have overdue tasks in Equator, your short sale may be declined if you do not take action.
Short sale Request by Lender: Add Mrs. Seller to the Listing Agreement, Purchase Agreement, Preliminary HUD 1 Closing Statement so we can forward file to the Investor for approval.
How can a short sale lender request adding a name to legal contracts and a federal document when that name is NOT on the mortgage?
Mrs. Seller was NOT on the Mortgage.
Mrs. Seller WAS on the NOTE.
The mortgage IS the legally filed instrument naming who is TITLED to the property.
The Mortgage was Sold (MERS).
This stalemate took over 3 weeks to resolve.
Our response to this Short Sale lender request = NO WAY!
We will NOT just add a name to a listing agreement or purchase agreement or HUD 1 Closing Statement if the name is NOT LEGALLY ON TITLE OR DEED.
Pursuant to further discussions with the Title Company:
A 3rd party who is NOT ON THE PROPER DEED OR RECORDED MORTGAGE CAN NOT SIGN A DEED TRANSFERRING, nor appear named on the HUD 1 closing statement.
Sometimes I wish we had a direct line to the President , so he can know 1st hand on a grass roots level just what is really going on!
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