Dave Halpern Louisville Short Sale Expert (502) 664-7827

The Last 24 Hours of a Short Sale

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OK fellow short sale trench mates, here’s a topic that buyers and their agents rarely understand; the last 24 hours of a short sale.

Short sale listing agents know that most short sale lenders require an advance copy of the HUD statement 24 hours prior to the closing. That’s when the havoc starts. The banks want to rename fees, nitpick prorations and move line items from one section to another.  The short sale negotiation could have taken eight months and the bank could have $300,000 ready to be wired to them, but often, in the last few hours everyone has to scramble to chase down a loss mitigation manager to get reapproval of the HUD because the bank won’t pay a $50 “wiring fee” unless it gets renamed to “payoff delivery fee”, or the HOA has to be on the second page and not on the first page. How about “our investor (the actual owner of the loan) doesn’t pay “doc prep fees” but they will pay “document management fees”. Remember, this is weeks after they issued a short sale acceptance letter based on a preliminary HUD.

All parties could be sitting idle at the closing table while the short sale lender a thousand miles away plays trivia with the HUD statement.

The seller is stressed out because they think the short sale was suddenly denied and their house is going to foreclosure. Fortunately the seller trusts you because they know how diligently you worked to save them and how inefficient the banks are.

But the buyer is freaking out because the moving van is packed and they promised their kids that the Christmas tree will be up that night in the new house. They want to close and move now! Not tomorrow, not tonight, not in an hour. NOW! And, by the way, how dare the closing get delayed when they dedicated their entire lunch break to squeeze in this closing. Tears and temper tantrums soon follow. Not by the kids, by the adults.

The buyer’s agent and their loan officer are up in arms because the closing is “blowing up”!

And ooohh, the listing agent who worked dozens of extra non-compensated hours over many months to navigate the short sale so the buyer can pick up free and instant equity is now the villain. To the buyers, the buyer’s agent and the loan officer it just seems like the listing agent twiddled thumbs and waited for the last minute. “And how dare he not notify us in advance that the short sale wasn’t approved!” goes the rant.

And then, like magic, although we knew it would come, the email or fax arrives that all is reapproved and we’re clear to close. The buyer’s tears and anger hormones go back into their respective glands. They sheepishly sign the deed and their new mortgage, and drive to their killer deal, instant equity, new home, mumbling what a horrible experience it was.

They should all walk in our shoes for just one day.

Dave Halpern

Louisville Short Sale Expert




Many Realtors in the Louisville Kentucky area recognize us as the short sale leaders and bring us in on their short sales. We get it done!

Copyright 2009 Dave Halpern LouisvilleShortSaleExpert.com


Written by davehalpern

December 15, 2009 at 2:47 am

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