So I have another file sent over to REDC from BAC to do a "Cooperative Short Sale". This one was included in a chapter 13 BK a couple years ago. My negotiator called me yesterday to tell me the net requirement they needed and also that since I didnt have the trustees release on it, he was going to shut it down. So i asked him how can I get trustees approval if I dont have your approval on the contract from the buyer? He seems to think all I should have to do is call up the trustee and get a simple release letter, which is NOT the case.
I call the trustee and she tells me I need some sort of agreement to present to the court to get it released and in her own words saying that we would have to get a release from the court. She said is almost all cases we submit estimated HUD-1 with all figures along with the approval letter that has the buyers name on it and the contract, for the court to approve. She seemed just as confused as to why this negotiator would say I can just call up and get a release. It just doesnt happen on a 13.
Anyone ran into this type of thing before?
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Never had to have an approval letter to get a trustee letter. Copy of contract was always enough.
Just closed one with Wells Fargo that was in the exact same situation (chapter 13). The borrowers BK attorney had to go to court and request a document stating the property was allowed to be sold via short sale. This cost around $500.00. We then added the attorney fee along with a billing statement to the seller side of the est hud and requested approval. It actually worked and the short sale was completed. Best idea is have your borrower speak with his/her BK attorney.
Hey Wendi so you did this prior to going through the short sale?
No .. Short sale was already 4 months in, The closing specialist advised we would need that document before closing. Added an extra week to the approval letter and kicked it in gear. The BK department was very helpful in this case. I think I was lucky.