I am currently working a short sale where the offered price pays the first mortgage holder (VA loan) in full, and has about 60% for each of the remaining two mortgage holders. I was told Friday we are waiting for the VA to do an appraisal and the assigned negotiator is having technical problems getting into the VA system to order the appraisal (or something like that). My question was "what do you need an appraisal for?" He responded, "we need to know what the house is worth." I questioned the need when they are being paid in full. "oh...yeah...um..." It had clearly not occurred to him that the value of the house was not going to make a difference in what they were getting. So, he is checking with higher ups about how to handle this. Wouldn't a simple approval, so we can get on with getting the 2nd and 3rd to agree, seem the logical next step? Am I missing something here?
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This is the second thread I have seen with this sort of question and I don't quite understand it. Why are you even working with the VA? Get the pay-off and work with the other mortgages. Overestimate the amount due to the primary so that you don't have to deal with decreasing funds as you move through the processs. Then if you get it done early just increase the pay-out to the other lenders. If the file is in foreclosure you may need to contact the attorney to get the pay-off because the bank will not be able to provide it.
The negotiators all work on block checks aand don't really understand in most cases what they are doing. They are going to do the same things on every file: check docs, order BPO, etc... They usually don't have the capacity to understand that they are being paid in full and really should be asking you why you are even talking to them.