On April 10, 2008
I wrote this blog: But it isn't closed, it's turned out to be a nightmare. Read the whole thing.
A Short Sale That Left Me Smiling.
I listed a home 11 months ago. I stepped down the price as the market fell. Starting at $119,000 and when I hit $99,000 I got an offer. When I went over the offer with my client, she was distraught that he had to come out of pocket to sell the home. The offer was for $95,000 and the note was $113,000.
We got into the conversation about possibly short selling it. Now not a payment had not been missed. But we had a cash offer. The home was vacant and the monthly mortgage payment was a financial hardship. So I put a file together and faxed it over to the lender. The file was complete, hardship letter, the financials, and comps.
I faxed the packet on March 20th. The closing scheduled for April 16th. The lender: Amtrust formally know as Ohio Savings Bank. I called on the 21st to check if they got the packet and I was abruptly told no. I started to tell the negotiator the situation and I was cut off and told I didn't have authorization. So I called back on the 25th and the conversation went about the same way. They don't see the packet in the system.
I called back on the 28th and was told the packet was in the system but not assigned. I still had no authorization. I faxed a single page authorization again. By this time I was tap dancing with the buyer telling him that the seller was going to need more time.
I called on the 31st of March and I was told that the packet still had not been assigned, but I was authorized now on the account. The negotiator's demeanor had changed radically. She agreed in good faith to order an appraisal even though the short sale packet had not been reviewed. The appraiser called Wednesday the 2nd of April and asked for access. He called on Friday the 4th to tell me he was done and could I check a few things in the covenants for a restriction or two. I called him Sunday and gave him the info.
On Monday, the negotiator called and said that the appraisal came in at $95,000. She needed a change or two on the HUD1 and a history of the listing. With that she could submit to the PMI company. I called Tuesday to follow up. She informed me that the packet was complete and it was forwarded to the PMI company. I got a call from her at 8:30pm Tuesday night. The PMI company had approved the packet and her banks supervisor was the next hurdle.
Wednesday at 11:00am she called and said everything was approved and the conditions letter was on the way. We are closing April 16th.
I am smiling right now as I type. If your packets are complete, and your offer fits the guide lines of the lender ( 18% loss or less for most lenders) you can pull off a short sale in less than a month. Even if the loan is current.
But for every one like this, there are 10 that are just the opposite. Be persistent and accurate. And always follow up!
My client since then has been getting letters demanding payment. I called and learned that the PMI company which agreed to pay $20,000 to the loan balance has not paid.
Phone calls every other day demanding payment on the loan and letters threatening foreclosure. Each time I call, I get the same explanation, this is just the process. With all the short sales I have processed, I have not experienced this.
A week ago, the PMI company hired a private investigator that appeared at my client's door asking if the credit application was the one that she signed to get the loan. This was for a second home and it was a full doc loan! Then it occurred to me that they were investigating the lender. Since I choose the lender, and I was the agent that helped my client initially purchase the condo, I was involved in the initial process. Statements were signed, and the credit app was all correct. Hopefully now this issue will be put to rest. It has been more than 2 months!
Has anyone else seen or heard of this? Please post comments.
Comments(6)