Post Short Sale Approval Troubles
Today, Kevin and Fred have decided to cover a subject that they have never covered in the past. Moreover, they haven’t ever discussed it in one of their Crush It courses. The topic is post short sale approval problems. Basically, you already have an agreement from the bank and troubles crop up. How do you handle them? What is really happening out there?
With a transaction that closed yesterday, our escrow officer was looking to get the last HUD approval from our negotiator at Citi. It was closing today. The negotiator denied the final HUD in spite of the fact that all of the provisions were met. The worst part was that the negotiator was not willing to verbalize in plain english to explain that the HUD had to look a particular way. It is essential to note that just because the transaction is approved, it does not mean it is closed.
Understand that your approval letter at most banks says that they have to approve of the final HUD. Because the approval letters don’t specify what they are paying and what they are not paying, you might not know if they will grant it.
We had another post approval predicament of late, with an approval from the controller. We planned the closing. About a week into the closing, we got a call from a different negotiator that introduced themselves as the the new negotiator for this file. She requested a number of documents so that she could get the file approved. When we told her that we previously had the file accepted, she let us know that that agreement was no longer applicable because they never got the file accepted from the backer.
This is the sort of things that is occuring out there that you will not here in a ordinary short sale training lesson. The point is that there are post approval problems and you are going to have to deal with them if you want to be victorious in this industry.
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