Who Gets the Approval Letter for A Short Sale?

By
Real Estate Agent with Keller Williams 414-525-0563 57026-90 Broker

 Our answer to this question may well not be the same one you get from other agents.....our legal advisors for the short sale portion of our practice...smaller portion...but a portion Upside down housenone the less...is...."as few people as possible." 

    The Approval letter does NOT go the loan "officer"...to the Buyers or anyone other than the Underwriter on the buyer's side of the transaction.  When the short sale is approved, we send an affidavit, written by a member of our legal team, that says that by signing it, they are agreeing to protect the privacy of the Sellers with the information that they areShort sale approval letter being provided with the approval letter.  Further that the lender, its assignees and agents will be held strictly responsible for the misuse of this information. In reality, and in the very beginning of short sales, not even the Underwriter asked for the letter...the title company is giving the Buyer clear title which means of course that all liens have been released from the property.   The Underwriters "union" (I swear there is one made up of people feeling it necessary to insert their ego into as many transactions as possible,) decided one day that the approval letter was one troublemore piece of paper they required for their pile...and for us, not without their signature on our affidavit.

         Short sale Sellers have been through enough turmoil, anxiety and stress without adding identity theft to their trouble basket. It's one of the protections we offer  and a dignity they deserve, they have elected to do the best thing they can in a bad situation.

    If you or anyone you know is no longer able to pay their   mortgage for reasons of hardship, call the Hansons...if you do not live in southeastern Wisconsin, we will refer you to a qualified agent in your area.

  This has been a public real estate service post brought to you by Sally K.  & David L. Hanson, broker associates with Keller Williams in southeastern Wisconsin.

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Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
2,502,510
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo & Home Sale Specialists

The best way to get the right answers on short sales in southeastern WI, is to work with the Hanson's!

Jul 09, 2017 04:19 AM #1
Rainmaker
2,067,455
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Sally.  Hmm, this is a new one on me.  I'm still digesting the post, thanks for sharing

Jul 09, 2017 04:23 AM #2
Rainmaker
3,953,554
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thank you very much for sharing some of your successful business practices.

Jul 09, 2017 04:24 AM #3
Rainmaker
3,642,963
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Interesting, Saly and David.  I haven't done a short sale in a number of years, but when I did them, the approval letter only went to the closing agent.

Jul 09, 2017 04:37 AM #4
Rainmaker
1,277,112
Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

Good info, as usual, Sally K. & David L. Hanson and the other tidbit is to be vigilant that the approval letter always dismisses the mortgage and the note. We caught many lenders trying to sneak this by the distressed sellers.

Jul 09, 2017 04:43 AM #5
Rainer
67,800
Eva B. Liland with Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Selling Your Home in Today's Market

I have only done one short sale and without the help of our short sale certified transaction coordinator, I could never had done it.

Jul 09, 2017 04:55 AM #6
Rainmaker
1,844,724
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Just finished a short sale this past week... first one in more years than I can remember and hopefully the last one for more years than I can imagine!

Jul 09, 2017 05:06 AM #7
Rainmaker
597,221
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Sally & David, 

You have a good handle on how short sales should be processed in Wisconsin and I highly recommend that buyers and sellers seek out your expertise in this matter. 

Jul 09, 2017 05:35 AM #8
Rainmaker
1,221,676
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good Morning Sally and David - it is good that as people see this as possible so that the seller can get through this and put it behind them.

Jul 09, 2017 06:20 AM #9
Rainmaker
2,947,877
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sally & David, great information on short sales, and you are the REALTORS to contact for any quesitons! 

Jul 09, 2017 07:05 AM #10
Rainmaker
3,478,143
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Anyone thinking of selling their home as a short sale in your area should call you.

Jul 09, 2017 07:55 AM #11
Rainmaker
2,138,678
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Wow, you both know your stuff when it comes to short sales.  I have only done a couple over 20 years.

Jul 09, 2017 08:29 AM #12
Rainmaker
1,617,233
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Sally, a very wise idea for all WI short sale sellers to know & call you for the best representation.

Jul 09, 2017 10:14 AM #13
Ambassador
3,110,667
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David it is always interesting to read how things are done differently in different parts of the Country.  Here in CT the Short Sale Approval Letter is sent to the Seller, who then forwards it to the Underwriter so the Buyers loan can be approved.

Jul 09, 2017 03:17 PM #14
Ambassador
2,862,434
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Sally and David- while I know very little about the ins and outs of short sales, I do know that you and David are the kind of caring agents I would want handling it all for me. 

Jul 09, 2017 05:45 PM #15
Rainmaker
2,583,104
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi Sally and David -- it's been years since I was involved in a short sale and then it was representing buyers.  When I received a call about the possibility of listing, I called in an expert and co-listed with that person who handled that side of the transaction. 

Jul 10, 2017 01:26 PM #16
Rainmaker
1,694,238
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

And here I thought people came to me to ask to look at the house to give it my approval!

Jul 11, 2017 04:35 AM #17
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce - Short Sale
For All Things Wisconsin Real Estate...Call the Hansons
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