Short Sale CASE STUDY: 014

Slow & Steady Progress

The last few days were met with slow and steady progress.  Not as fast as I would have hoped considering we have an offer that exceeds the minimum net the lender is requiring on this one.

Particularly frustrating is that we lost a few days of work while passing around a different version of the short sale affidavit that I had already had all parties sign.

I keep a full packet of the various lender forms on file so that I can have them filled out early in the process to avoid delays.

It didn’t work this time.

GSE 1.0 vs. FHA 1.3

A GSE is a Government Sponsored Enterprise, like Fannie Mae and Freddie Mac.  So when I had the agents, buyer and seller sign the Short Sale Affidavit in the beginning I assumed it would be sufficient.

Nope.

There is an FHA form that pretty much says the same thing that needed to be used.  Not only that, but a NEW FHA form.  Version 1.3.

More delays.

The fact that I have been working with a great team on this one really has cut down on the delays.  With an uncooperative seller or an agent that wasn’t on top of things this form could have taken a couple of weeks to get completed.  I am fortunate that it only took a couple of days to get this back once I was able to provide the correct form.

I have been assured by the banks negotiator that he now has everything he needs to review the short sale for approval.  He has even told me that he has “delegation” to approve this short sale.  Delegation means that the investor has given the bank the authority to approve the short sale provided certain parameters are met.  We have met those parameters apparently and should have an approval within days!

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