At what point is the borrower supposed to receive the ATP? At what point is the borrower supposed to get approval from FHA for the contract?

I have been working on a FHA short sale for 5 months. The borrower was determined qualified for a short sale, but no ATP document was sent.

On September 23, I received FHA approval on the contract. I had been waiting for the official approval letter from USBank. Every time I called the answer is, "It's in processing".

Friday, October 24, I am sent the ATP for the borrowers to sign. The next thing I know, an appraiser is contacting for another appraisal. In order to receive approval for the contract, an appraisal and 2 BPOs were completed. Why would the bank now need another appraisal after 5 months of working on the file. FHA appraisals are good for 6 months, right?

I filed a complaint with NOVAD who says they are investigating. I escalated the file 3 times to the escalation department. I have gotten nowhere.

Buyer has been waiting since May 22, to close. She is going to walk. We have had 4 extensions now. Why doesn't the government step in when the errors are so blatant.

Please advise regarding the steps. Maybe I am confused about the timing of the ATP but I need to find out.

Thank you for your response.

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Typical of USBank.  The ATP should have been issued shortly after the buyer's financials were approved and the appraisal ordered.  It's not uncommon for USBank to take months and in doing so, the first appraisal expires.  They then have to order a 2nd or can get HUD to approve a variance to extend the original appraisal.  I have had no success in escalating to the USBank or working though their "Single Point of Contact" relationship manager roles.  The only thing that gets them moving is to escalate to HUD.  Open a ticket with the HUD National Servicing Center in OK.  You'll need to send them a 3rd party authorization.  Good luck

Thank you. I have already contacted HUD and opened a ticket. They are supposed to be in the process of investigating. I wanted to confirm that I should have had the ATP long before now. The contract review approval should occur after the ATP. You have cleared that up for me. Thank you very much!!!!!!!!!!

What is wrong with this servicer. They will do anything to pass the buck and not work on a deal. 

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