US Bank Short Sale Dilemna

We have submitted an offer and are currently in negotiations with US Bank as 1st and 2nd lien holders. The property is located in Kansas. Contract was submitted for $157K, the Bank's original counter was at $170K, and the buyer's certified appraisal came in at $160K. Seller has insurance check for $7,902.00 assigned to US Bank as sellers contribution. We have an estimate of $4K of specific repairs needed on this property. Nothing is asked to be paid on this.

The next thing we know, the sellers gets a letter of rejection of the short sale from US Bank stating that they are not at eminent risk of foreclosure when they are aware that the sellers have not made a mortgage payment in 4 months and the sellers no longer reside at the property. US Bank also stated in the rejection letter that the sellers make enough income to make the mortgage payment which is not true. I have attached both letters.

Someone throw me a bone on this one

Jen Enderson, Realtor, SFR, CDPE

Century 21 All-Pro

USBANK.pdf

I also have an FHA that meets all the approval to participate guidelines and
after going over the negotiator's head 3 times she finally responded that she
could only move files to final audit for approval as they are received and she
is backlogged 12 weeks, I felt sorry for her but that doesn't help me with a
Buyer who has to close by 8/31:(

Replies

Kimberley Kelly August 13, 2011 at 2:49pm

This is what I love about this site..I have not done US Bank and now I don't think I will!!!
Becky Martin August 13, 2011 at 7:30am
Jen - I hate US Bank - they are the most unorganized financial institution there is, avoid any further listings with them as the lender. I have 2 pending with them now,a traditional that has been pending for 10 wks until assigned and now when I called on the 2nd which was a charged off HELOC after being on the line with them for 2 hours and transferred 7 times I was pretty much told "well it will probably be lumped with the 1st now, I can't really tell you where that loan is located" so I will proceed and if I get an approval on the first will deal with it then....then my partner called on one of their short sales with US Bank and was told:
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I also have an FHA that meets all the approval to participate guidelines and 
after going over the negotiator's head 3 times she  finally responded that she 
could only move files to final audit for approval as they are received and she 
is backlogged 12 weeks,  I felt sorry for her but that doesn't help me with a 
Buyer who has to close by 8/31:(
```
NO more short sale listings with US Bank as the lender!
Jeff Payne August 12, 2011 at 2:54am

Jen, you will need to escalate this one but be sure that your sellers are telling you the truth about their financials. They could be hiding some money :)

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