Short Sale CASE STUDY: 019

Approved Once Again

I received word last Friday that the delegation was granted and the negotiator with Wells Fargo was able to issue the approval for our new buyer!

Yeah!

As always, I made sure that all the numbers were correct before forwarding to the seller and agent to let them know the good news.

Sometimes I have to remind myself that these things can’t close as fast as I think they will even though there is a cash buyer.  I often deal with short sale homes where the seller has already moved on and the home is vacant.

Not so in this case.

The seller needs to once again find another place to live and will likely need [Read more…]

Short Sale CASE STUDY: 018

Waiting on the Lender

Its been a week since I submitted everything the lender had requested and I hadn’t heard anything.  I messaged the negotiator to ask him for an update and he was quick to respond.

He said that he was waiting for HUD to approve his delegation request he had submitted 7 days ago.

What is Delegation you ask?

Simply put, delegation is permission to act without [Read more…]

Short Sale CASE STUDY: 013

Don’t Forget Jr. Liens!

When I first spoke to the seller he mentioned getting some State assistance to help him make his payments.  At first I just assumed that this was some sort of disability program because of his medical problems.

It turns out he was actually lent $20,000 and they placed a lien against his property to get repaid!  Truthfully this looks like a good program because it was interest free and the balance was reduced over a period of years until it disappeared (to make sure you truly used it to stay in the home). It was through the Oregon Affordable Housing Assistance Corporation.

Never heard of ’em…

FHA won’t allow more than $2500 to go a junior liens so this could be a problem. Will they accept a short sale? [Read more…]

Short Sale CASE STUDY: 005

Back on Track and Waiting on the Lender

I am very fortunate to have a seller that is on the ball for this file.  He was able to fill out the requested information and return it to me in plenty of time to get it uploaded before their cut-off.

Again, most of the time these short deadlines are all fluff to get movement on the part of the agent.  But we don’t want [Read more…]

Short Sale CASE STUDY: 004

Our First Bump In The Road

So the existing loan is apparently and FHA loan.

You can read a previous post about FHA Short Sales to get some of the details regarding some of the unique characteristics of this type of short sale but the bottom line is that this just got a little more complicated.

Not harder.  Just a little more complex.

I didn’t want to do an FHA short sale as part of the case study because it adds that extra wrinkle that doesn’t apply to other short sales. But that pretty much sums up the nature of short sales doesn’t it?  You have to role with the punches.

Specific Language Required

FHA requires there to be specific language in both the listing agreement and the purchase agreement in order to complete a short sale. For the listing agreement it needs to have this language:

[Read more…]