This one has been a doozy!  Been working on this HAFA short sale since last February. 1st Buyer walked. 2nd Buyer (investor / cash) has been in place since the end of April. Delay after delay after delay on the SPS side.  They have both the 1st and 2nd loans.  Investor on both is PNC, with 2 different mortgage insurance companies.

Received an approval letter for the 1st on July 25th at $138,000. Called to find out when we could expect approval from the 2nd and then was told that the approval letter was issued in error.  The mortgage insurance company on the 2nd was requiring an additional $2,000.  Buyer refused to come up in price, so Realtors agreed to reduce commission by $1,000 each to meet the net.  Had to fight with SPS to get them to agree that, yes, Realtors can voluntarily contribute commission under HAFA; they just can't be required to do so.  More delays.  More excuses.  I would call one day and be told they had everything needed to move forward.  I would call back 2 days later and be told they noted the file 2 weeks earlier that documents had expired.  I was told that the file had been submitted to the investor for approval, then 3 weeks later that was not true.

So much time went by that they had to order BPO #3.  SPS rep shared the value with me last week, and value had gone down from the last BPO (which it should have in our market).  I was told everything looked good and I breathed a sigh of relief.

2 days ago I called and was told that the Dodd-Frank Certification had expired months ago and the file could not move forward without an update.  We immediately took care of that.

Yesterday I received a call from Loss Mitigation stating that the investor is requiring net proceeds to be $5,000 higher than the BPO value!  I asked to speak with a supervisor.  She confirmed this.  I told her this would more than likely push the Borrowers into foreclosure; with winter upon us, if they take the property back and resell, the investor's net would likely be significantly less than with our current offer.  Supervisor's response was "investor is willing to take that risk."

I am just sick about this.