Denial Letter 9 days before closing

Yes, that's right, I already had the approval letter in hand and everyone was proceeding to the close date.  The buyer did their inspection and was ready to move forward.  No indication of trouble in Bank of America/Fannie Mae paradise.  Today via equator, I get an message with a denial letter attached.  It was denied because it failed Quality Review.  I called the customer service dept and there were no other notes except for that nondescript blurb.  The CSR also confirmed that the short sale had been cancelled in equator.  I sent a note to the negotiator, but haven't gotten a response yet, if I ever will.  Has this happened to others or am I just the lucky one.  By the way, the buyer was paying higher than market value for the property which was in lousy condition, but since FM doesn't consider repairs in their highly inflated prices, the buyer was paying more than he should.  FM is destroying short sales left and right.  Comments, insights, and sage advice is welcome and appreciated.

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Permalink Reply by cat gellatly on March 21, 2014 at 9:09am

I agree with you. Something has changed with Short Sale lenders. I had an approval with Nationstar then two days later I was told that they need a $9,000 contribution. This was after court mediation, 2 appraisals paid by the buyers. The negotiator said she forgot to get the investor to approve it. REALLY?

Then I have another short sale with WellsFargo that came back and said they wanted a $6900 contribution and the sellers to sign a Promissory Note for the full deficient balance. I sent them a long e-mail asking them if they actually reviewed this file, this is a court ordered sale and neither one of these people have any money! Where have they been for the last year? Finally somebody looked at the file again and they came back and said they would take just the cash contribution and to counter what the Sellers can afford. I feel like we have gone back in time 3 years where things are getting lost and one hand does not know what the other is doing. VERY FRUSTRATED. 

All this is happening after the files go for final management approval.

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