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Anatomy of a recent Countrywide Short Sale (updated)

By Catherine Myers

Real Estate Agent with Windermere Bay Area Properties

July 10, 2008 05:51 AM

So, we're not there yet, but what a relief that a big lender like Countrywide has made it a mission to streamline the process. In case you didn't see my post on June 29th, let me recap and let you know where we are in case you're following along:

June 14th: Submitted authorization to communicate in anticipation of offer(s) on property.

June 17th: Called. Confirmed authorization received and went thru "telephone intake" with CW rep. They asked me questions about the sellers financials, situation, hardship and then questions about the buyer's offer. We passed and we were sent on to the short sale department. Only then do they want you to submit your package to the short sale dept. This included an estimated HUD from the title company for the offer we were submitting, their hardship letter, financial statements, bank statements, pay stubs and buyers offer, deposit check copy and pre-approval letter.

June 20th: Called. Confirmed package received and it is "in processing." Advised it would take up to 2 weeks to process and then will call for appraisal access.

June 23rd: Called. CW advised that package is complete and that an appraiser will be calling for access within 5 days.

June 26th: CW appraiser called client directly for access the next day 6/27.

June 27th: CW appraiser completes appraisal at home w/ client.

July 7th: Called. Shows appraisal was back on 7/1 but no negotiator assigned yet. So Rep put it up to management to assign negotiator within 3-5 business days, then negotiator will have up to 10 business days to review file.

July 9th: Assigned negotiator on 7/8. Day 1 of her review period starts today. Has August 9th to review file. NEW company policy (as of this week!) shows the negotiator has up to 30 days to review file.

So, we keep plugging away. I asked the rep I talked to today for some information.. He said that the negotiators go thru 200-400 files a month. And CW in general is handling 27,000 new short sale applications each month. And we wonder why its a slow process?

Short Sale Support Phone Numbers for Countrywide:

For reference: Countrywide Short Sale Support: 866-880-1232 and Countrywide's fax: 888-491-4947

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Tina Bann

Prudential Benrud Realty - Eau Claire, WI

Catherine - Way to stay on top of this situation! Some of these companies are so overwhelmed with short sales that the process takes much longer. I just went through a very frustrating experience with OCWEN and my buyer eventually backed out because he was tired of waiting for approval on our offer. We were given a verbal acceptance but then 45 days later were told that our offer was not high enough. Buyer walked!

Jul 10, 2008 05:55 AM

Michael Shankman

Award Realty - Las Vegas, NV

Selling Las Vegas 702-498-3383

good post..there are so many short sales here in las Vegas..I have offers on two of them and it is taking over 2 monhs already.

Jul 10, 2008 05:57 AM

Lynn911.com ~ Dallas Real Estate Agent Top Team

Dallas Houses for Rent Dallas Apartment Rentals Lynn911.com - Dallas, TX

I have been a Dallas listing and buyers agent for short sales WOW, no matter what allot of work goes into the short sale process. HOWEVER I never done one where it did not end in drama, good luck have a great weekend.

Jul 10, 2008 05:58 AM

Pam Joffe

Solaris Realty - Tampa, FL

Hi Catherine - Short Sales are difficult. I can't remember one that went quickly and smoothly and they seem to be moving slower and slower as the amount of files pile up.

Jul 10, 2008 06:03 AM

Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Catherine- Just keep calling. And calling. And calling! Good luck on your approval!

Jul 10, 2008 11:31 AM

Kieran and Cecelia Loughman

Exit Creative Reaty - North Port, FL

Hi Catherine

I have one file that must weigh 5 pounds. On 8/5 when you call and they either lost the fax or want you to update the hardship package info, you'll know the joy of CW.

Thank you for your blog

Kieran Loughman

Jul 11, 2008 01:05 AM

Catherine Myers

Windermere Bay Area Properties - Walnut Creek, CA

Walnut Creek, CA Real Estate

Kieran, funny thing is that the negotiator already called me yesterday! WOW... They said she had 30 days, and she called me in 1... So I'll keep this updated as long as people are curious and I'll let you all know what really happens :)

Believe me, I know the story of lost.. see my other post about who's watching the store! LOL

Jul 11, 2008 03:01 AM

Laura Moore Godek

Laura Moore Godek, PC - McHenry, IL

If you lose the buyer for any reason you may want to continue the process with CW so you will know what they will accept.

Jul 13, 2008 01:06 PM

Anonymous

Karen

Catherine,

The situation you describe is so similiar to the experience my husband and I have had with Countrywide (dates included)! We also just got a negotiator and were also informed of the 30 day waiting period! My husband and I have made all payments to date but now that a negotiator has been assigned CW has shut down our online access. My question for you is this; do you recommend that we continue to pay at this point? Our financial situation is getting scary but we keep scraping up enough to get by. We are just wondering if we don't miss a payment if CW will take us seriously. Also, we don't want our credit to get dinged any worse than it has to. Any experience you can share with me regarding this would be greatly appreciated. Thanks

Jul 17, 2008 05:26 PM

Catherine Myers

Windermere Bay Area Properties - Walnut Creek, CA

Walnut Creek, CA Real Estate

HI Karen, well tough question you ask there. It is interesting though how each deal is different. I have one client who's short sale I could not submit until his payment was "due" or "late." They said their system would not allow the entry of a short sale if he was up to date.. so in essence, making him miss a payment (Countrywide). On another though (B of A) clients haven't missed any payments and I think we're nearing an approval on that next week.

So, I don't know if you should miss payments.. if you want to preserve your credit and they will go forward with the sale with no missed payments then you may have the best of both worlds. Its also something my clients think about all the time.. do I keep throwing money at a house I know I can't keep no matter what I do? Could I use the money for moving or renting a new house? I guess in someways, only you can answer those questions...

Good luck!

Jul 17, 2008 06:05 PM

Allen D. Butler

The Realty Butler llc/West USA Realty, Inc. - Peoria, AZ

MSSC, GRI, CDPE

I talked with Countrywide on last Friday, and they told me that it is now their mission to have an "answer" or "decision" on short sales withing 15 days. I'll definitely hold my breath for that one. Hope they get better though. Their current timeframe is 60 - 90 days.

Jul 19, 2008 09:37 AM

Edie Lomason

Michael Saunders & Company - Venice, FL

BA, ABR

I am living this scenario almost to the actual days you posted. We were told it would be 15 days from July 9 to receive a decision on our offer. Of course the listing agent is unable to communicate with the actual negotiator - I don't know how hard he is really trying. Unfortunately, my buyers are returning to China Aug 20th - I hope it closes before they have to go back because they would like to furnish and re-carpet the place. Funny thing about this deal is that I showed my buyers 16 properties and this was the only short sale because I knew of their time limitation. The listing agent assured me it would be quick because he had already negotiated another offer on this property and the file was open and assigned a negotiator. What he failed to tell me was that offer was in December and he never communicated with Countrywide after that. I learned after making calls myself that after 2 months a new appraisal must be ordered and you start all over with a new negotiator.

Of course my buyers fell in love with this property, fortunately they are very patient. Once I get them in the house they will love it - I just hate to put them through this process when I intentionally tried to avoid short sales.

Jul 20, 2008 01:04 AM

Anonymous

KCBuyer

Catherine-

Quick question for you...I'm currently trying to buy a short sale we made the offer June 30, and were told last week that the sellers have a contact at CW and are working very hard to get this done for us by Aug 29. They originally told us it might take 90 days so we put Aug 29 (60 days) as our closing date to speed things up (and b/c my lease on my apartment is up Aug 30).

Today my agent said the seller's agent told her "They now have a negotiator assigned but by law, he has to take at least 30 days to review the information."

Is this true? Or did is there just something going wrong in this game of "telephone"? I thought they had 30 days to review but could take less than 30, not that he had to review it for 30 days no less.....

Also any updates on your short sale?

Jul 25, 2008 09:53 AM

#13

Catherine Myers

Windermere Bay Area Properties - Walnut Creek, CA

Walnut Creek, CA Real Estate

Hi KC Buyer,

I got so busy I have let updating this fall by the way side. This particular one has had a conditional approval on 7/23/08. So that's good news. We are haggling on a promissary note they want, that the seller doesn't want - so we're working on that.

I don't think its accurate that they HAVE TO take 30 days to review. They have up to 30 days to review per what reps have told me within CW. It hasn't so far in the last couple I've submitted taken the full 30 days.. usually within a week or two.

On another note this week... I got a Wells approval, a B of A approval and I'm waiting for an approval, I HOPE , from Carrington. Though we are offering Carrington a little less than they want, their choice is this, or we'll have to foreclose.. there's just no money left with the first, seller has no money, so we await and hope they make the right decision.

Jul 25, 2008 11:10 AM