Nightmare Short Sale, Now Loan is Being Sold?
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 After BIC takes over, she is asked to re-submit all documentation as what they have on file is incomplete and outdated.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.
Replies to This Discussion
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Permalink Reply by Short Sale Superstars LLC on
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The loan was service released. Read this blog that we just wrote yesterday that addresses this very issue. What is a service release?
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Permalink Reply by Jimena Paridee on
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Brett, we had a BofA deal that got service released to Ocwen after the approval and found that Ocwen honors the approval letters from BofA as long as you can close per the terms of the original approval letter. It was really easy.
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Yes, we have seen this before as well and have closed a deal like that well. In the blog post it states that, that may be an option. We have not seen it hold up enough times to say that it's likely that the approval letter will be upheld.
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Actually that is Ocwen's policy, unfortunately they are the only ones that I'm aware of that do that. Maybe other lenders will get smart and follow suit.
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Thanks, I'll have to look into that. Possibly, it's a new Ocwen policy due to the service releases So many BOA loans are being service released to Ocwen right now. When did that deal close for you that the approval was upheld?
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We close about 10 days ago. Actually I learned about their policy through ShortSaleSuperstars (love this site by the way), the policy is posted in the Ocwen Group. Yeah I was pretty shocked at how easy it was, just had to send them a copy of the approval letter and they sent me an email back with wiring instructions. Made my day :)
http://storage.ning.com/topology/rest/1.0/file/get/3131604828?profi...
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Thank for the information, this must be a new policy, but i'm glad it's in place. Ocwen many times is a difficult lender to deal with especially due to them almost never postponing sale dates. The deal I'm referring to was a probably a month or two ago, so this must be a new policy as getting our approval letter to be upheld took escalation contacts at Ocwen and then it was still difficult!
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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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Permalink Reply by Bryant Tutas on
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xx
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Permalink Reply by Maria Cristina Esquibel on
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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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Permalink Reply by Bryan Crabtree on
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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.
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Permalink Reply by Susan B McCarter on
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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...
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