We took the listing on April 9. We closed it on September 25. My partner, Bill Taylor, brought this one in. The owner had it briefly listed with another agent but that other agent did not give her copies of the paper work and lowered the price of the home without asking the owner.
Our client lived in the home 9 years. She was a divorced lady becoming an empty nester. She was a very competent office manager earning in the mid 40's. In November the owner sold the business and 2 weeks later she was out of a job. My partner's wife knew how good she was so after a couple of months she was able to get her company to higher her at 1/2 the salary. Here in Idaho we have low wages for most people. In February our client gave up paying her mortgage. She tried to talk to the company but they were unhelpful.
I explained the short sale process and made sure she did not want to try to keep the home. It was badly located for her work and life and she didn't have the money to pay the mortgage plus the bills. She planned to move in with her elderly parents and regroup. As well as the normal listing stuff we got the form to release information so I could talk to the bank. We priced it a bit high but that was OK since I needed to see what the banks policy was.
I uploaded the form April 10. I asked the bank what their procedure was. It does seem each bank has a different procedure. It was explained because this was an FHA mortgage she would have to try for a loan modification then refuse the modification. Nationstar (the bank) called this process the Waterfall. This lady had all her document to me by April 14. I sent them the first time. Then a second time. then a _____ time. I have lost track of how many times I sent the material. They often would sit in on it for weeks then claim one form was slightly wrong. I am nothing if not persistent. I thought when I went away on vacation in early July we were close. The negotiator then rejected the whole package for a form I had sent him several times. I got to work again. When I got back I escalated my contact with the manager. This at least got the ball rolling.
Our client had to write several letters. First explaining her hardship, second why she was not receiving unemployment in 2015 since she did in 2014, third why she did not want a modification, fourth refusing the modification.
They offered her the modification (they were willing to reduce her mortgage by $49/month and put everything on the back end of the loan). She had to write a letter explaining why she couldn't do that either. Finally they approved the short sale. They only did it because her excellent credit had slipped while they were collecting paper and not saving it in her file. If they had been quicker they would not of approved the short sale.
After that they ordered the appraisal and told me what the bank needed to net. We put it to appraised price and I had a few thousand to spare (in case the buyer needed closing cost). My partner ran an open house and we got a full price contingent on sale cash offer. No we didn't double end it. Grandson was a Realtor. At this point I got a very competent short sale negotiator. One who would answer me by return email. We were clear to close for Sept 8. During this time they put on a $3000 relocation allowance for our client. The offer happened on August 14 to close on or before October 14. The other home was supposed to close on Sept.4. The shortsale approval gave us until Sept 28 to close. On Sept. 3 I was told loan docs on the other sale hadn't come in we were probably looking at Sept 15. So I got another HUD. Around Sept 15 I was told we were delayed again until Sept Sept 21. The other agent did not respond to emails or texts or phone calls. I needed stuff for the short sale. There is a lot of paperwork on a short sale. On Sept. 23 I was told that the first deal would close Friday. Since Nationstar needed 3 days to approve the HUD I set the final HUD for Sept 28.
We came to sign on Sept 25. The HUD was for Sept 28. At 2 PM we were told we were funded and recorded.