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Short sale approved but they want seller to miss a payment!

Posted by Erica on July 12, 2013 at 10:24am in Short Sale Discussions
We put contract on a short sale through Suntrust in April. Bank approved short sale yesterday under the condition seller misses 1 payment! He's never been delinquent on payments! Is there any way to get by this? This will now push closing back another 6 weeks :/

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Replies

  • Ken Ryan July 15, 2013 at 5:58am

    Sounds like this is a FHA-PFS short sale. HUD requires Borrower to be delinquent at least 31 days at closing. However, there is more to the story. Please see clarification on this requirement provided by the HUD Director of the National Servicing Center.

    1. Servicer has the discretion to decide whether or not a Borrower who is not deliquent will be considered for a PFS short sale.

    2. If Servicer decides to accept Borrower for review AND the ATP issued, the Servicer MUSt accept an offer for review.

    3. If Servicer decides to accept Borrower for review AND ATP issued AND offer is reviewed and meets all requirements for short sale approval, Servicer HAS DISCRETION whether or not to issue final apporval letter untill Borrower is at least 31 daysd deliquent.

     

    As I said, this comes direct from the head of the HUD National Servicing Center. Thought you may be interested. I have debated this issue with Wells Fargo regarding their position that the 31 day requirement would begin at the Servicer's discretion.Good luck!!

  • Ben Benita July 15, 2013 at 1:04am

    You can move in prior to closing if the Seller is ok therewith (and of course if they will agree to miss payments or take the necessary steps to avoid missing payments).

    I would suggest taking occupancy prior to close and offer some type of monthly "rent" payment if necessary.

    We have done this in the past with great success.

  • Erica July 14, 2013 at 6:27pm
    Yes I am the buyer! We put a contract on house in April we put offer in 12,500 over asking price we found out last week they accepted offer after his payment is late
  • Tony Morales July 14, 2013 at 6:18pm

    Erica  looks like everyone is giving you alot of misinformation.  You are the actual buyer , is that correct?

  • Erica July 14, 2013 at 2:06pm
    Our child is suppose to start school the first week of Sept so I wonder if they will take this consideration.
    • Ben Benita > Erica July 14, 2013 at 2:23pm

      I would play that up if you can get to a decision maker, but the lower level persons have nothing in their script for this.

  • Erica July 14, 2013 at 2:05pm
    But didn't we sign affidavit staying we can't make contact with bank?
    • Ben Benita > Erica July 14, 2013 at 2:22pm

      not sure what you are referring to?

      The Seller has the ABSOLUTE right to know who the Investor is.

  • Ben Benita July 14, 2013 at 1:51pm

    FOOD CHAIN 

    FOOD CHAIN

    FOOD CHAIN

    Go to the top at Suntrust and speak with them.

    Find out who the Investor is and get it direct from them

    REQUIRE them to put it in writing.

    Contact the OCC and OTS to file formal complaints.

    There are roughly 101 things you CAN do to combat this, but it will require countless hours over and above I am sure what you had planned on.

    The "missed payments" topic is absolutely something that should be discussed up front with EVERY Seller in your pre-listing questionnaire (contact me direct for a copy of the one we suggest using).

    Erica - not sure where you are in VA, but I live in Manassas, glad to meet or chat on the phone (and why are we NOT handling all this non-sense for you anyways)????

    Ben@ShortSaleShop.net

  • Tony Morales July 14, 2013 at 6:34am

    Do not TRUST anything that Suntrust  tells you.,. They are the WORST!!   They need to change their name to SUNUNTRUST

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