Replies to This Discussion

Permalink Reply by Dean E Eshelman, CPA, CDPE, IRES on August 9, 2013 at 6:46am

Yes

Permalink Reply by K C on August 9, 2013 at 6:56am

Ok....is there any way to know how much longer it might take to get the final approval letter?

Permalink Reply by Dean E Eshelman, CPA, CDPE, IRES on August 9, 2013 at 8:08am

Only the listing agent will know what communications have taken place and the expectation. In a short sale the date is when the Servicer gets ready, however to goal is to get closed before expiration of the Approval to Participate (ATP) So to answer your question, not really.

Permalink Reply by K C on August 9, 2013 at 8:10am

What exactly is the Approval to Participate? I never heard the listing agent mention that before.

Permalink Reply by Dean E Eshelman, CPA, CDPE, IRES on August 9, 2013 at 8:30am

The Servicer will give a letter telling the listing agent the terms under which it will accept a short sale. -- Included in that letter is the minimum amount the Servicer will accept on the 1st ( which you said is not short. However, remember real estate commissions and other expenses come out of the gross sales price as well as the payoff to the junior lien holders). This is commonly referred to as an ATP.

The listing agent should also have a preliminary closing statement (HUD-1) showing the projected payments to lien holders.

Permalink Reply by ElizabethWeintraub00697006LyonRE on August 9, 2013 at 12:52pm

It could mean that the first lender has requested the unpaid balance statement from the second lender, and they typically do this to make sure the amount does exceed their own short sale guidelines regarding payoff percentages, but I can't really tell by the description. The second investor usually receives a percentage or it could be a flat fee as permitted by the first.

As far as the Approval to Participate, that applies only to FHA loans. Is Dean below involved in another conversation that I am missing? Is this an FHA loan, per chance?

When Bank of America issues a counter offer in Equator (which is not exactly a counter offer), you're generally about 10 business days away from an approval. Of course, if this is an FHA loan, then it's not in Equator.

Permalink Reply by K C on August 12, 2013 at 1:49am

No this is not an FHA loan. I feel like I haven’t been told all that much about the situation. All I know is we are waiting on 2 investors to approve. The last I heard was what I wrote in the original post about the second pay off notice. We never received a counter offer from BofA in Equator…unless it was something minor that we weren’t told about. From my understanding we submitted our offer, BofA reviewed it and then sent it off to investors. That was about a month ago….but the listing agent says she believes there were quite a few investors.