Catch 22 In a Santa Clara County Wells Fargo Short Sale

By
Real Estate Agent with eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales B.R.E. 01191194

Here's the problem. The buyers on my short sale listing want to close on March 23 because they have a great loan lock.  They make an offer on a one of my short sale listings on Feb 20th. The price had been previously approved but I tell them that I would be surprised if we will be ready on our end that quickly.  However, I have a great relationship with the negotiators for both loans. It was easy to do that. I always assume they are on my side until proven otherwise.  They are hired to move short sales through the system and to work with the investors on the loans to that. It is the investors that I get mad at, but I do not get to deal with them directly so they do not get to hear how mad I get at them sometimes.  In any case, my two negotiators got me a second approval in 3 days on the first loan, and 2 days later on the second. I think that is pretty remarkable! So we are all set on our side. They negotiators tell us that Service Link who is negotiating for the first through Indy Mac needs 48 hours to approve the final HUD1 statement, which specifies who is paying for what , and how much money the lender is getting from the sale.  Wells Fargo has the second, and they need one week.  So one week before the planned close date of March 23 my wonderful title officer, Lee Kocjan at Fidelity Title sends in the final HUD1 for approval with a close date of March 23.  

But of course, the buyer's loan docs are not ready.  The buyer's loan docs are finally ready on March 28th, but guess what the final approval for the second has expired. We have to send in a new HUD1 and get a new final approval.  But guess what, the buyer's loan docs will expire on March 31 and the county recording office isn't even open on March 31 because is is a local holiday.  So the loan docs will have to be re drawn, but by then the 2nd HUD1 approval letter will expire, and you can see the Catch 22 here.  

So the moral, DO NOT ORDER THE FINAL HUD1 APPROVAL FROM WELLS FARGO UNTIL THERE IS ABSOLUTELY NO QUESTION THAT THE LOAN DOCS ARE READY.

I would have done that, but I was trying to accommodate the buyer and their agent and by doing so they have a longer delay.

If you have any questions about short sales in San Mateo or Santa Clara County please feel free to contact me. I LOVE SHORT SALES even with their Catch 22s.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

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Marcy Moyer eXp Realty of California  Specializing in Probate and Trust Sales, and Rental Investment Properties

 

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