Post Short Sale Approval Troubles

Today, Kevin and Fred have decided to cover a subject that they have never covered before. Furthermore, they haven’t ever talk about it in one of their Crush It classes. The topic is post short sale approval problems. Essentially, you previously have an approval from the lender and troubles crop up. How do you deal with them? What is really occuring out there?

With a deal that closed yesterday, our escrow official was looking to get the closing 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 terms were met. The most horrible part was that the negotiator was not willing to talk in plain english to clarify that the HUD had to look a specific way. It is important to note that just because the contract is approved, it does not mean it is completed.

Appreciate that your approval note at most banks says that they have to approve of the final HUD. Because the approval letters don’t detail what they are paying and what they are not paying, you may not know if they will grant it.

We had one more post approval problem of late, with an approval from the coordinator. We scheduled the closing. About a week into the closing, we got a shout from a new negotiator that introduced themselves as the the new negotiator for this file. She requested a number of documents so that she could get the folder approved. When we told her that we previously had the file approved, she let us know that that approval was no longer applicable because they never got the folder approved from the backer.

This is the kind of things that is occuring out there that you will not here in a normal short sale teaching seminar. The point is that there are post approval problems and you are going to have to work with them if you desire to be victorious in this business.

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