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 running all the details through the investor.  This is most commonly seen in legal dramas on TV where an attorney is given permission to approve a settlement without having to run it by the client directly.  The client may say he is willing to pay a certain number and the attorney doesn’t need to get final approval if he can work a deal below that number.

In the case of this short sale, Wells Fargo is the servicer of the loan and HUD (FHA) is the investor.  My negotiator with Wells Fargo has asked for delegation, or permission, to approve this offer without having to submit all the details to the investor.

This is supposed to be a short cut.

In theory, its faster if Wells Fargo can review the paperwork and sign an approval letter.  They have to review it anyway so submitting it all to HUD for them to look over and approve is an extra step and can add a couple of weeks to the process. Unfortunately, when it takes over a week to get delegation approved it kind of defeats the purpose.

So here we are…  waiting…

Speak Your Mind