Today, Kevin and Fred have decided to embrace a topic that they have never covered in the past. Furthermore, they haven’t ever talk about it in one of their Crush It lessons. The subject is post short sale approval troubles. In essence, you previously have an agreement from the lender and troubles come up. How do you deal with them? What is really occuring out there?
With a transaction that closed yesterday, our escrow official was looking to get the final HUD approval from our negotiator at Citi. It was closing today. The negotiator denied the final HUD despite the fact that all of the conditions were met. The most horrible part was that the negotiator was not willing to speak in plain english to make clear that the HUD had to look a precise way. It is critical to note that just because the deal is approved, it doesn’t mean it is completed.
Realize that your approval letter at most lenders says that they have to approve of the final HUD. Because the approval letters do not state 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 coordinator. We planned the closing. About a week into the closing, we got a phone call from a new negotiator that introduced themselves as the the new negotiator for this folder. She asked for a number of papers so that she could get the file accepted. When we told her that we already had the file accepted, she let us know that that approval was no longer valid because they never got the file approved from the investor.
This is the type of things that is occuring out there that you will not here in a standard short sale teaching session. The point is that there are post approval problems and you are going to have to deal with them if you desire to be successful in this industry.
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