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Servicer setting closing date BEFORE approval?

Posted by Johnny Escobar on February 16, 2017 at 10:40am in Short Sale Discussions

- SS package submitted in 1/13.
- BPO completed w/o 1/24.

Then 2/7 servicer supposedly asks seller and buyer to modify contract closing date from "60 days after bank approval" to "4/24/17".

Anyone every seen this happen?  Why would they want to set a closing date, when they haven't even given us an approval/denial/counter-offer?

Thanks in advance for any insight.

(EDIT: Servicer is BMO. Still trying to get a solid answer on who the investor is.)

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Replies

  • Johnny Escobar March 7, 2017 at 3:52pm
    UPDATE: Just found out this is a bank-owned portfolio loan. Is that a good thing or a bad thing? What are the pros and cons?
  • Tony Morales February 21, 2017 at 9:07am

    reason #1  the investor guidelines give maximum days to close to avoid you requesting an extension

    reason # 2.  possibly the loan may be scheduled for service release to another servicer.

    • Johnny Escobar > Tony Morales February 22, 2017 at 5:54am

      Thank you. Your comment prompted me to do some additional digging, and I found that the seller was served a lis pendens in August 2016.  I was able to find additional court records showing that the bank is trying to foreclose on them, with the next court date scheduled for 3/29/17.  According to the court docket/records, they've pretty much had one court hearing per month since they were first served.  I wonder if 04/24/17 is the date they need us to close the short sale by in order to avoid foreclosure.

      The demotivating part about all of this, is that the seller's agent failed to disclose any of this.  They said the sellers stopped making payments in Sept 2016.  The seller's agent has been awful about giving us updates or answering questions.

      To give you an idea, I'm still trying to find out who the investor is. Seller's agent keeps saying they don't know, and I can find it using one of various online tools, but they all require the last 4 of the borrower's SS#.

  • Jonathan Katz February 16, 2017 at 1:07pm

    Most banks like 30 days from approval as the verbiage. Not normal they gave you a specific date to put. I wouldn't personally be concerned about this though in my opinion. Every servicer and assigned processor is different, they are humans too!

    Brett@ishortsalenow.com

    310-564-6389

    www.ishortsalenow.com

    • Johnny Escobar > Jonathan Katz February 21, 2017 at 4:38am

      Thanks for the insight.  Perhaps I'm reading too much into it.   I really wanted to interpret it as a sign that an approval is coming, but that just may be wishful thinking.

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