The Short Sale Grind

The influx of new business into Northwest Debt Management has caused some unique scenarios to crop up on a daily basis.  This past week has been particularly interesting with Lenders finding new and creative ways to make the short sale process more difficult than it needs to be.  Below are 3 examples.

Not Quite the Digital Age

A dream scenario for anyone selling a distressed property is a full price, cash offer.  We received one this week.  Buyer and seller signed via Docusign.  For those of you who don’t know, Docusign is a company that allows you to sign contracts electronically through email and the internet. Gone are the days of faxing 10-20 page documents over and over, or having to drive all over town to get signatures or initials on pages.

These electronic signatures are easy, clean, green, and totally legal according to the Electronic Signatures Act passed in 2000.

Try telling that to Chase.

Chase refuses to review a short sale offer if the signatures aren’t in ink, or “wet” signatures.  Despite my efforts to inform them of the Law, and despite the fact they are not party to the contract, we had to go back and have everyone sign in person.

My biggest frustration on this issue is that the contract will still be executed in person, in front of a notary when the deal closes.  Why not let it go through to that point?  Because they can. While they are not party to the contract, they do have to approve it in order to release their lien.

It’s in Underwriting…

Just sitting there.  Waiting for someone to look at it.  For THIRTY DAYS.

Despite being told that we were just waiting to hear back from the Mortgage Insurance company, BofA somehow managed to assign a HAFA short sale to the underwriting department, but not actually notify any particular underwriter that they needed to work on it.

We made our weekly calls and were told that everything would move forward within the 30 day time frame because the file was in underwriting.  After losing my cool and running the issue up the food chain I managed to get an underwriter assigned and the review expedited.

To my dismay the first act from the underwriter was to ask for updated financials because the ones submitted where now over 30 days old. Great Caesars Ghost.

 

Lost in Translation…

After 60 days with U.S. Bank, I finally got a response from the negotiator by voicemail.  He stated that management was reviewing the short sale offer and needed 2 things.  A social security letter and updated paystubs.  Here is the actual transcription of the voicemail via Google Voice.

 

The seller is very cooperative and I received the requested items the same day and emailed and faxed them to the lender.  After 48 hours I followed up to make sure the items were received.  The rep for U.S. Bank stated that they were still missing the bank statements that the negotiator called and asked me for.

Now Google Voice has some funny translations at times, (reward butter?) but he clearly asked for paystubs not bank statements.  Twice.

Because this seller is really on top of it, we only lost 3 days to this little mix up.  But you can see how this kind of mistake can cause serious delays.  Not to mention the fact that the only reason they needed updated bank statements is because it takes 60 days to get them to look at it.

 

Having a trained negotiator to work short sales is a must.  We can’t eliminate all of these errors, but we can take the hassle away from a real estate agent having to deal with it.  Contact us if you are ready for a Hassle Free short sale.

 

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