Roseville Short Sale Specialist closes another successful Wells Fargo short sale.
This short sale in ROSEVILLE CA. had lots of potential ROAD BLOCKS but we were able to negotiate all of them along the way.
ROAD BLOCK # 1
INVESTOR IS FANNIE MAE: First was with Wells Fargo, which I am usually excited when I work with that bank. They usually are fast and good to work with. The road block is that the loan is backed by FANNIE MAE which means they are the investor that ultimately has to approve the offer. Typically we have seen their BPO values come in higher than the recent comps. This means that the offers we submit to the bank typically will be countered because Fannie Mae will want 20% more than the recent comps. If we can not get what the bank wants, then it becomes a foreclosure and the buyers use FANNIE MAE's Home Path Lender which does not require appraisals. In this competitive market, buyers may or may not care about over paying for a property. So sometimes Fannie Mae would rather foreclose than to do a short sale. It all depends. BUT I NEVER GIVE UP anyway as you never know.
ROAD BLOCK #2
2 LIEN HOLDERS: We had a 2nd lien holder which was also Wells Fargo which adds another layer to negotiate but the EX-SPOUSE WAS ON the 2nd LOAN NOT PARTICIPATING IN THE SHORT SALE. I had to get the 2nd to agree to do the short sale without thier participation. After taking this issue up the chain of command several level up, I was able to get some answers. My client was the only one on Title and the divorce decree had the property in my clients name only. So that was good. Wells Fargo was willing to complete the short sale without thier signatures and did not require any sigs on any closing docs even though both name were on all the documents. THIS WAS BIG VICTORY!
ROAD BLOCK #3
House had a whole in the ground for a pool that was empty and had no liner. Only cash offers can buy this home as is. We had many offers and conventional buyers were willing to fill the pool in with dirt to buy the home. The ROSEVILLE SHORT SALE market is hot and homes are scarce so this did not matter in this case.
ROAD BLOCK #4
Fanney Mae did not approve the first buyer's offer wanted more money. After 3 months to get a counter offer back from Fannie Mae, we find out that they wanted 50K more than the current offer. The buyer did not want to come up in price, so we put the home back on the market.
ROAD BLOCK #5
Start the short sale all over again! At that time the ROSEVILE CA SHORT SALE market had became even hotter so we were able to get an offer for 39K more than before. We submitted the offer to both banks and the 2nd gave us a provisional acceptance based on the 1st approval. It took the 1st another 3 months to approve the short sale being that we needed Fannie Mae's approval again. This time Fannie Mae accepted what the buyer submitted. They still accepted less than they wanted the first time around. This is not usually the case.
NOTHING UP LOOKING UP! We closed the deal in 10 days from short sale approval and the seller had all deficiencies waived and was able to move on in his life. The SHORT SALE took a total of 6 months to approve. Now our client can start looking up to a hopeful future and get back on tract. My Client rented a home near to the new job and looks forward to entering into the housing market in a couple of years.
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