We were in the process of requesting an extension on our short sale approval because we needed more time for the city to process some paperwork that was file. And the bank said that a short sale option is no longer available due to the history on the account. I assume they are referring to the fact that we had already received a short sale approval extension prior to this, that extension was due to repairs on the property having to be done to appease the appraisal inspector. The bank advised the only option now is a loan mod, which is not possible for my client. Does anybody have any advise or experience with this? The bank is select portfolio servicing by the way.

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Who is the servicer and who is the investor?

The servicer is SPS the investor was originally chase per the Loan Docs

Ah, yeah SPS and chase backed assets have a new guideline that is horrible. I had 4 listings fall apart within the last month because of it. I wish I had good news for you but if they are telling you a short sale is no longer an option the short sale likely won't get done. They only allow one short sale review once the listing period expires. meaning if they denied you for an extension now due to a maximum number of extensions, you won't be able to reopen a short sale.

JUST FYI we had this happen on our files.  Complained to cfpb and SHOWED them that it was impossible to list, get under contract and sell a short sale in the time SPS allotted. Also sent to AG's office.  Now all four files are being reviewed.

Interesting. What if they could argue that "we did have enough time" What do you feel the results would of been then? I had two approved short sales die because of this guideline when the buyers fell through.

Well, what we did was  pull all sales in the county from list until CLOSING which wasn't easy info to find, because on our MLS it only lists from list until UA.  So we found that traditional sales took an average of 100 days from LIST until closing and the ONE short sale in the county we found took 179 days.  In our letter they gave 75 days from list until closing so we couldn't even meet a traditional sale deadline. Bottom line is get CFPB and AG's office involved.  I'm working on one now that was listed over 400 days and they tried to pull that crap, and then also said that the offer was too low....It started at 2.2 million 435 days on market and offer came in at 1.2 million.  Not sure HOW they think the offer would be too low considering the extraordinary marketing time it had.


What type of paperwork was being processed with the city and is this something that would be required to meet the terms of the short sale approval letter from SPS in order to close? What was the length of the initial extension?

it was a garage conversion that had to be demo and yes it was a condition that had to be met for the city to issue the release of the substandard and that was required to be able to issue the title policy and close. and then the loan approval expired so the lender had to resubmit and some of the buyers employers took a very long time to send back his voes.  I guess he's employed w several employers thru the year so they all had to be verified. 

Hi Adriana  i think you are getting misinformation from SPS  First,  they would have already had to review the homeowner for home retention(modification)  prior to opening a short sale workout. I have negotiated several short sales with SPS   I'm here in Calif so contact me if you need help

Tony Morales

Tm Short Sales Consulting


Hi, call the consumer ombudsman department and explain what’s going on. See if they can step in and help. When things are escalated through their department, they are able to reach out to higher contacts. I’ve only had to utilize them a few times over the years but they always have helped get results. 866-662-0035, Option 3

thank you ALexis

Evey file with SPS is a battle now.  You have to file complaint with CFPB and your AG's office.  Get the prior documentation that shows what the prior short sale period was and what was allowed and then research it and compare it to what ACTUALLY happens for a short sale in your market.  Most likely the timeline was unrealistic.  It shouldn't matter how far in default it is unless it's an FHA short sale.



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