I need to know whether you all think it is worth trying to proceed with this short sale. The "short" story is:
I represent the buyer. Made an offer in March, which was accepted by seller. Listing agent apparently never submitted the whole package, kept making excuses blaming it on Equator and then quit replying altogether. After about 30 days of no response, I find out agent has taken some kind of "leave" and is no longer handling the file, no longer an agent, I believe - agent's BIC is now handling it. Loan is with Nationstar. After BIC takes over, she is asked to re-submit all documentation as what they have on file is incomplete and outdated. Seller balks initially, but finally provides new documentation. BIC tells me everything has been submitted through Equator and we are now waiting to hear from Nationstar re: my buyer's offer. That was two weeks ago. Seller informs BIC yesterday that she has received a letter from Nationstar indicating they have sold her loan to CitiMortgage effective Oct. 1!
Any advice as to what this means for my buyer? She REALLY wants this house, but can't continue waiting indefinitely. We have yet to get any response from the lender to our offer.
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Many banks are now "servicing out" their loans to other banks. I've had this with a couple of my B of A deals. I would check with the BIC and see if they are going to continue with the listing. The bank may take up to 30 days to get all the information before they will even accept anything from the seller. Since you haven't gotten very far in the process with previous lender not much is lost other than working with a unmotivated listing agent. I'd see if your buyer is willing to wait for Citi. I've worked with Citi and they're pretty good vs. many other banks. Be prepared for a valuation that may be higher than what your buyer is approved for if values are rising in your area. Try and talk the buyer into hanging in there. That's what I'd do unless there's so much inventory that you can do better.
Sorry but that's the way the cookie crumbles. I've had many short sales lately that were started with one servicer...only to find out BEFORE approval, that NOW the NEW servicer will be another company. This happened with a Citi file that was sold to Carrington. When this happens, you have to get your whole package updated and submit it to the NEW servicer...but the kick is...the NEW servicer can't start processing anything in their system until they have their NEW loan # attached...
You can submit the package, but if you don't have the new servicer's loan # attached to it...then they cannot work on the file..until the day they are the legal servicer. So if your new servicer legally starts as of Oct 1st...then you need to find out the loan number they will send to the seller in the welcome letter to the seller, and submit the new short sale package with that new loan # on it, the DAY the servicer is legally the new servicer... This will cause delays...because the old servicer cannot do anything with this file since it was sold, unless it was approved and you had plenty of time to close all cash...
If not, you just have to do the waiting game...ball is in your court.
Same thing happened to a short sale I am working on, all paperwork was submitted but then Bank of America sold the loan.
Had to wait three weeks for the new contact information. The Buyer walked and the Seller lost out on the relocation money because the loan is no longer with Bank of America, plus the stress of starting the whole process over.
The new servicer does not want anything other than the authorization form until we have a new offer, and they do not use the equator system.
Hope things work out for you and your Buyer.
My experience has been Citi has been way tougher (much longer wait) than NationStar or well of anyone else- but maybe just because Equator made everything better.
I imagine you will be starting over on Oct 1 unless you get an approval letter by then (may or may not be honored).
BUT as someone else wrote, it may not be an immediate transition on Oct 1. It took a few weeks until the new servicer acknowledge the transition on one of mine to accept new paperwork.
Thanks for all the great advice! I'm showing a new property to my buyer today. We'll discuss and see how she wants to proceed.
Susan - I also feel powerless as the buyers' agent in a short sale - it feels so lame to keep telling my buyer that I haven't heard from the other agent and can't do a thing to find out the status.
Sharon, sounds like one of my deals. Ocwen bought a loan from Chase. The BIC needs to get an authorization letter fromt he seller to CitiMortgage right away so the conversation can take place to find out what they will or will not do. I hate having the buyer, I always feel so powerless. Usually when a loan is sold it is for at least half of what was owed, if not less. So if the offer is reasonable and Citi is still going to make money, they would probably honor the decision. Best of luck...
That's good news. When BofA sells one to Nationstar, I'm happy - they're better than BofA. But, when one goes to Citi, that's even better. If you work with them and stay on top of it, Citi will move fairly quickly.
Hi, how are you doing?
If your buyer wants the house better wait a little bit. This happend all the time. I had one before that was sold to Nationstar too and I had to resubmit everything again, but I closed. Negotiator from this lender was very helpful.
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In my experience CITI is much easier to deal with than Nationstar and they are pretty quick. The drawback is that the seller will have to wait until the loan is with CITI before starting the process over again, which might not happen until the middle of October. If your buyer is willing to wait then he will probably get approval faster from CITI that he would have from Nationstar.
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