Short sale with Seterus

Hi,

My daughter is going through a short sale serviced by Seterus. The short sale was approved on 1/7/2013 and she was given until 1/30/2013 to close. Her lender said it would take at least 45 days to close so she objected to the 1/30/2013 date but she went along as she was assured that an extension will be granted.

When 1/30/2013 came and she was obviously not ready, Seterus granted her an extension to only today (2/15/2013). She is a first time home buyer and the property is a high rise condo. The lender made her jump through hoops for numerous explanation on the condo HOA. She did her best and finally got loan approval on Tuesday (2/12/2013). She needs until next Wednesday (2/20/2013) to close as Monday is a Hoilday so she technically misses the 2/15/2013 deadline for 2 working days. She has signed all the loan docs and placed all the required closing funding in escrow. She asked for a second extension on 2/12/2013 but haven't heard anything from Seterus as of today. The agent said Seterus might just put the property back to BPO.

 I am just wondering what is the normal turn aournd time for the second extension approval and if Seterus is a company that will likely grant the second extension. So far, she has been highly stressed out and has expended a lot of money  in appraisal, loan doc expediting, inspection as well as ordering of HOA documents. What else can she do now so all her money and effort will not be in vain?

Any help from the expert will be greatly appreciated.

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Permalink Reply by Bryant Tutas on February 16, 2013 at 1:53am

Seterus should grant an extension if the deal is ready to close. Send the listing agent a written loan commitment letter to send. They then need to send this with a revised closing statement and contract extension(if expired) to Seterus with the extension request.

Normally you have no more than 60 days to close on a transaction. You have some time left if the lender agrees to extend.

Permalink Reply by P Nicolas Velecico on February 18, 2013 at 3:39am

 

 I had the same situation with Sererus and when they completed  another BPO the minimum net went from 138,900 to $154,800

 Buyer walked and the home now is sitting at the higher price with no new offers .

 

Permalink Reply by Michele Mallory on February 18, 2013 at 6:48am

When I had to ss my property when we moved, our buyers were not ready to close, we were able to request a 30 day extension w/o any issue but when we had to ask for a 2nd extension, Seterus denied it and our approval letter expired.  Becuase our buyer was a first time home buyer and they had done everything in their power to close, we stuck with them.  When we renegotiated the file the 2nd time, Seterus required we take back a $10K note for approval.

We fought with Seterus because we had done everything to market the property to get the highest & best offer by staging, upgrading flooring, leaving new stainless appliances, maintaining property after vacating.    But the were firm.

We agreed to the note in order to get the approval & our buyers eventually closed 2 months later.

I agree with Bryant, if you can provide written loan commitment and be ready to close, you may have a shot. 

Permalink Reply by rebecca on February 18, 2013 at 6:56am

The listing and buyer agent for the property is the same. He said he would try to elevate it to Seterus' management level to avoid the file being sent back to BPO. The loan is through Parkside lending and they kept wanting more explanation on the condo HOA and thus caused a one week delay. The interest rate lock for the loan expires this Friday.

The original listing price for the short sale was $170k. It was a fair market price at that time as a lot of properties closed around that range.  Seterus took 8 months and they wanted $195k and 20 days to close. My daughter really liked the property so she agreed to it. If Seterus wants more money after another round of BPO, I am sure my daughter will walk too but it is just sad that she waited 9+ months, spending a lot of money and potentially still gets nothing.

 

Is there a contact in Seterus that my daugther can call and help the situation? Thanks

Permalink Reply by rebecca on February 21, 2013 at 6:42pm

Just to provide an update. My daughter finally got the 2nd extension from Seterus after one week. They extended it for 2 weeks but my daughter only needs a couple of days.The loan was funded and she is scheduled to close tomorrow. It was a long and painful process but she is getting there.

 

Thanks

Permalink Reply by Michele Mallory on February 22, 2013 at 3:10am

That is awesome!!  Good for her!

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