Aurora Loan Services: Short Sale Warning

By
Real Estate Broker/Owner with Rulnick Realty, Inc.

I have had a Short Sale offer in process with Aurora Loan Services since December.

Facts:

The house, in Niceville Florida, was listed for $183,000.

Offer was for $175,900.  VA financing with seller total contribution of $3000 including doc stamps on the deed, a customary seller expense in Florida.  Thus, the seller contribution to buyer's closing was only about $1700.

BPO price $185,000. 

Aurora counters $185,000. Buyers stay firm at $175,900.

30 days later- today- Aurora says sale is "approved".

Receive approval letter.  Aurora will pay $363 of the total closing costs, excluding a reduced broker fee.

I call Aurora.  "VA will not ALLOW VA buyers to pay certain closing costs.  You had the contract and the net sheet.  The contract stipulated VA financing".

Aurora:  "We don't pay closing costs."

Me: "Then the deal is going to fall through".

Aurora: "Sorry."

Warning:  Although this lender only countered the purchase price, they omitted any mention of closing costs until the deal was "approved".  Wish me luck saving this one!

UPDATE:  This deal was approved, and Aurora seems to have improved their processing.  Read my newest post about Aurora Short Sale Approved in 26 Days!

It's WendyIt's Wendy!

Wendy Rulnick, Broker, CRP, CRS GRI, ABR   Rulnick Realty, Inc.

Specializing in the Emerald Coast of Florida:  Destin, Fort Walton Beach, Santa Rosa Beach, Seagrove, 30-A, Niceville real estate, Bluewater Bay, Navarre, Crestview.  1-877-487-9639.

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Posted by

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

Wendy Rulnick, Broker/Owner Rulnick Realty, Inc.

Call Wendy Rulnick 1-850-650-7883 ext 204

email itswendy@rulnickrealty.com

www.rulnickrealty.com property searches and community info

 

Wendy Rulnick is the marketing choice for sellers on the Emerald Coast who want to list and get their homes and condos sold in Destin, Sandestin, Bluewater Bay, Santa Rosa Beach, 30-A, Watercolor, Seaside, Rosemary Beach, Seacrest Beach, Kelly Plantation, Regatta Bay, Destiny and more.

Rulnick Realty

 

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624,467
Roland Woodworth
Q Realty - Clarksville, TN
Q Realty - Power In Real Estate

Hang in there Wendy.. Keep us posted

Jul 24, 2008 07:14 PM #20
Rainer
450
Frank Guevara
A.S.A.P Short Sale Services - Miami, FL

Hi Wendy,

I'm working on a short sale with aurora right now, and even though its only been about a month I sure can see that Aurora is going to be tough to deal with!  This blog has given me a BIG heads up, and I thank you and everyone who has posted for that warning. 

Aurora has done the BPO and has received the Short Sale Package (which took an unusual long time to be received, they even told me at one point that they had to hire 20 new people just to handle the overload of faxes!)  but now they are holding fast to this idea that, even though they have the HUD (with net to them), they will not work with me unless i verbalize the NET to them over the phone.  they tell me that this process will take 7-8 weeks, and to call back in 30 days!  Unless, of course, I want to tell them the NET they will receive (which they already know).

the Buyer needs to close in 4-5 weeks.  If this takes 7-8 weeks with not even some word on the file can kill this deal.  I don't want to give in and tell them something they already know, as i know that this could also harm the success of the offer being accepted.

(oh and now i know I am going to have more than a up hill battle in getting them to pay for closing costs!)

Thanks

-Frank

Oct 24, 2008 07:14 AM #21
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Frank - I think I got a negotiator who didn't care.  I finally got a replacement contract approved with them.  They ended up paying the VA closing costs.  It was a nightmare of a wait, almost 5 months.  Hope your negotiator's name does not start with "G".  Everyone else was great to deal with there.  One other thing to do is to call back and see if you get someone else.  Often, you'll get a different answer.  Email them, tool And ask for supervisor...  Best of Luck!

Oct 24, 2008 07:38 AM #22
Rainmaker
132,318
Lanette Branch
RE/MAX Components - Fallston, MD
Bel Air, MD REALTOR

Wendy, it's amazing that you even got the e-mail address of the negotiator.  I think that's a big deal; you're already ahead of the game.  I have not yet been able to get an e-mail address...

Oct 24, 2008 10:06 AM #23
Rainer
450
Frank Guevara
A.S.A.P Short Sale Services - Miami, FL

Thanks for the advice Wendy.  Great news on getting Aurora to see the plain facts about VA. 

I tend to call the banks back at least once a week.  but I like to ask them when to best call back.  I just never been told not to bother calling back for 30 days.  Especially after the BPO has already been done and received.  But good news as well that, other than "Mr. G" the loan officers as just as varied as any other lender.

Oct 24, 2008 10:35 AM #24
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Lanette - Hint on emails to Aurora  firstname.lastname@alservices.com AND firstinitiallastname@lehman.com

Frank - It's "Ms. G W!" by the way.  When they say call back in 30 days, you are right, call back in a week.  Different person, different answer!

Oct 24, 2008 11:06 AM #26
Rainmaker
132,318
Lanette Branch
RE/MAX Components - Fallston, MD
Bel Air, MD REALTOR

Wendy, thanks for the heads up on the e-mail address!

Oct 24, 2008 05:51 PM #27
Rainmaker
3,998,661
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Wendy, Glad it worked out and glad the buyers waited 5 months for the approval.

Oct 24, 2008 11:30 PM #28
Rainmaker
2,392,518
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Negotiators need to take a course in financing methods...

Oct 25, 2008 12:50 AM #29
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Lanette - You're welcome!

Gita - Lucky the buyer really liked the house!

Evelyn - It was maddening working with that negotiator!

Oct 25, 2008 01:56 AM #30
Rainer
2,525
Candice Beverly
Century 21 M&M and Associates - Los Banos, CA

Wendy,

I am currently in the midst of a Short Sale deal with Aurora. The property has a total of 19 active offers that all want to stay around "just in case". We should have a negotiator by Monday, BPO has already come back and they've stated the the offer amount does fall within the specified guidelines of the BPO. Then they say it'll be 7-8 weeks from then until we have an approval. My response..."for what?!?" What could possibly need to take 7-8 weeks once they've acknowledged the offer amount to be acceptable. Any ideas of how to light a fire under their behinds? I need them to move on this and quickly.

Thanks,

Candice

Oct 25, 2008 10:28 AM #31
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Candice - Maybe the offer has to go to an MI company or another third party? Ask.  Also, email the negotiator when you get her name.  My hint to Lanette: emails to Aurora  firstname.lastname@alservices.com AND firstinitiallastname@lehman.com

Oct 26, 2008 03:11 AM #32
Anonymous
BDWIRGES@MSN.COM

WE HAVE SENT CERTIFIED LETTER AND CALLS TO AURORA IN COLORADO TO REFINANCE OUR HOME AND THEY WILL NOT RETURN CALLS, WILL NOT ISSUE A LOAN MODIFICATION, WILL NOT TELL US WHO IS ON THE TITLE OF OUR HOME OR WHO THEY PURCHASED OUR LOAN FROM. WANT $2,700 WITH NO EXPLANATION AS TO WHY. WE STILL DO NOT KNOW WHO OUR LOAN WAS PURCHASED FROM. THEY ARE A DEBT COLLECTOR WHO WILL NOT TALK OR HELP. THEY SPLIT THE 2ND MORTGAGE AND SOLD IT AND NOW WANT $40,000 FOR THE SECOND. THERE IS NO COMMUNICATION, WE ARE AT A LOSS WHAT TO DO. AFTER DEMANDING THAT WE SEE WHO IS ON THE TITLE OF THE HOUSE, HOW THEY GOT OUR LOAN, WE HAVE NO HELP. CAN YOU.

Nov 22, 2008 05:08 AM #33
Rainmaker
497,201
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Sir or Madame - I strongly urge you to contact an attorney.

Nov 22, 2008 08:51 AM #34
Anonymous
Michele Michaels

Hi all,

I submitted a ss pkg to Aurora 10-15-08 and a BPO was promptly ordered and completed.  However, Aurora short sale dept has since gone on an automated system (phones) and online updates (myAuroraLoan.com)

Am told via online status that the workout was initiated 11-5-08 and expect 8 weeks for processing.  I have googled corporate governance in an attempt to find an AVP or some senior exec to excalate to, to no avail.

This is my 1st short sale involving Aurora...anybody out there feel up to sharing a contact person who might help me escalate to a decision maker, or one who can shake things up a bit? 

Good offer, values declining, strong buyer who we are trying to keep in the saddle :-)

Thanks

Michele  michele@brentandmichele.com

Dec 12, 2008 05:42 AM #35
Anonymous
jzm

I have been in my home for two years working with Aurora.  They have done several illegal things that every laywer I spoke to could not believe it.  I spoke to several before one came back to me and said if what you say is true, I will help you.  I have been living here without paying any mortgage but for all the people who tell me how great that is and I should be happy, it keeps me from moving on with my life.  I don't want a foreclosure but Aurora is going to do what they want when they want and I am going to have to wait until they are ready to let me move on.  I called and they told me to stay in the home and follow thru with the short sale because it was better for me and for them and if I didnt they would do everything in their rights to hurt me in my financial future.  That is the worst threat I can think of since I rely on my credit everyday and dont know what it is like to have the world treat me bad because of bad credit. 

Feb 13, 2009 02:23 AM #36
Anonymous
suncoastrealtor@comcast.net

Hi All:  I'm just starting to try and work out a purchase of a pre-foreclosure (going to the steps end of March) with Aurora as representative for the bank.  Has anyone done this type of purchase with Aurora and if so, do you have any contacts, numbers, emails?  Thanks.  Sally, Sarasota FL

Feb 19, 2009 12:25 PM #37
Anonymous
Stephahnie

Hi All,

The information on here has been great!  I am also having some issues with Aurora...I can't get a hold of anyone specific.

Although this thread is about short sales, I'm hoping someone on here might have some information for my situation: I am attempting to purchase a REO that Aurora owns.  However, the listing agent has told me that she will not submit my offer to Aurora.  The property was listed in the MLS as for sale and I submitted 2 very generous offers.  The listing agent keeps giving me the run-around about wanting to clean up the property, which she has not done, and still has not submitted my offers.

Since it seems that I cannot work with the listing agent, I am attempting to deal with Aurora directly, but I am unable to get a hold of anyone who can help me.  Does anyone have any numbers, contact names, etc. of someone at Aurora who can help me?

Mar 26, 2009 06:08 AM #38
Anonymous
carolyn

Hi everyone-  This information has all been very useful, and very frightening to me.  My husband and I put a contract on a short sale in mid-January.  Today we heard back from the seller's agent that Aurora, who holds the loan on the house, said the contract "looks good."   But they also said they would need another 30-60 days for approval.  Any way I can find out more information or what they even need another 60 days for??

Thanks in advance!  Carolyn

May 04, 2009 10:13 AM #39
Anonymous
Walter

Help, Help, Help.  I'm in Ohio and I put in an offer on a house where Aurora Loans is listed as the first mortgage holder.  Any advice on whom to contact, email addresses, phone numbers, any contact info or advice would be appreciated.  Thanks to all in advance.  wzimmer01@aim.com

May 04, 2009 11:09 PM #40
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