Almost every single escrow I've been working on this month has been delayed due to the turnaround times in underwriting. Although my buyers get priority at Vitek Mortgage -- due to some new agreement that rewards Lyon Real Estate's top producers by pushing our buyers to the top of the pile -- not every Sacramento escrow I'm working on is for a buyer. Many of them involve seller representation, and I have little influence regarding which mortgage company or bank those buyers use.
Underwriting can be a grueling process. It's often stressful. Times are lengthened, too. What used to take 3 days can easily drag out to 5, 7 or more. Best as we Sacramento short sale agents can second guess what an underwriter will require and take care of it before the loan conditions are produced, there's just no telling in some cases what will happen.
I closed several yesterday, one of which was a short sale, of course. Unlike most of my short sales, in this one I represented the buyers. In fact, these buyers and I are filming a House Hunters' episode next week. So if you are trying to reach me the last 3 days of that week, I'll be having my nose powdered and trying to think of clever things to say about an empty space with four bare walls and beige carpeting.
We settled all the buyers' loan conditions early on, but the underwriter had other issues with this closing. Also, the seller was short and needed to contribute funds to make this close. He did not deposit the required amount when he signed escrow papers. A county lien popped up at the last minute, and the seller refused to pay that, too.
I suspect the seller felt he could buy time to move. But sometimes sellers don't realize that once they sign escrow documents, they are giving escrow permission to close once loan conditions are signed off.
The listing agent was marvelous throughout. She's had great success in the past with discounting or releasing county liens, but the county of Sacramento refused to budge on this one, and we were running out of time. We had to get an extension from both short sale lenders, approval of the final HUDs from each and rework a few payoffs.
As the clock was ticking, the listing agent and I worked out an arrangement between the two of us to contribute money to close the transaction. It closed a day early, too. Just in time to sign the release for House Hunters. I imagine the sellers may have been astonished to discover last night that the locks on the doors had been changed. Yup, they left furniture and boxes inside, trash all over the lawn. Short sales are tough enough, and underwriting is a nightmare, but there's no unearthly reason for some sellers to make it more difficult.
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Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. DRE License # 00697006.
The Short Sale Savior,by Elizabeth Weintraub, available through bookstores everywhere and at Amazon.com.
Sacramento Short Sale Agent, Elizabeth Weintraub, has the answers to your Sacramento short sale questions.
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