Realtor Short Sales Training and Resources
My issues have not been with sellers and/or their lenders.....it is the buyers lenders and/or their agents.......
I have been so frustrated in the past months.....Not with the sellers lenders...
It has been entirely with either the buyers lenders and /or the buyers agents.
I totally understand the new guidelines for approving a buyer and for conditions being met.... What I do not understand is WHY conditions are drug out for over 3 weeks......conditions that many should have been met up front in the initial loan process and why or why can't they review the entire file and give the buyers agent a full list of conditions instead of this piece meal crap?
I have been trying for weeks now to close my first short sale referral for SSSN.......it has been worse than child birth, kidney stones, abscess tooth, broken elbow, standing barefoot on upright nails......do you get my gist?
SUPPOSEDLY, we are supposed to get docs tomorrow........as you can see I am not holding my breath......
Then on another one NOT associated with SSSN buyers agent has somewhat less than forthright.......will not go into detail.......
I operate in good faith.......I expect other parties to do so as well. Apparently that is something of the past.
Friday nite I just said screw it .......whatever happens , happens there is nothing else more I can do... So much of the issues we have has to do with follow thru and agents performing their fiduciary and not trying to pass the buck.......It seems like a lot of agents are caught up in the social media thing so much so that they are not paying attention to their guidelines, time frames, disclosures, obligations and then they blame the failures on others involved.......Bottom line , no matter whom you have on your team, you the agent are ENTIRELY responsible...It is your responsibility in the end to ensure that all criteria, conditions, disclosures etc have been met....
I just don't get it.......
Replies to This Discussion
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Permalink Reply by Joseph C. Alfe on
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I have been saying this for the past year. The real impediment with short sales not closing are the buyers. Insist as part of the contract verbiage that buyer close WITHIN 30 DAYS OF LENDER ACCEPTANCE, and have mortgage approval (not pre -approval) at least 15 days before close, or earnest money is forfeited.
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Permalink Reply by Terry L. Osburn, SFR on
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There is no doubt that tactic would work on buyer but it is the buyers lender who does not care. With FHA loans coming into play more it is taking at least 40 to 45 days to close.
Conventional loans I can usually strong arm. The mortgage approval has turned into another whole fiasco.
But your verbiage that earnest money will be forfeited if not provided within 15 days of close if mortgage approval has not been received may wake up some snoozers.
All I know is I am ready for an ice cold beer.....
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Longer approval and underwriting times makes it mandatory that buyer not wait until short sale approval to start their porocess
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Joseph, this is not what is happening in our area.........The process has been started right away.....the buyers lender is taking their sweet time in processing......getting appraisal -getting reviews and getting to the underwriter........ We are given pre approval up front and we ask every which way we can has the buyer been properly pre approved.......their letter states waiting for acceptable offer and appraisal.........It appears they are going back for several reviews etc.......
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Terry, pre approvals are garbage. They mean nothing. I require buyers to make their mortgage application within 30 days of contract acceptance. I require a conditional approval within 45 days. This way, the underwriting has been done pending appraisal. When I get short sale approval, buyer get appraisal and close 10 days later.
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Permalink Reply by Brett Ehart on
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Actually, a pre-qualification is usually just an over-the-phone thing where income and liabilities are discussed. A pre-approval is where income, assets, and credit are checked. It's almost a full application, so it carries a lot of weight.
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Pre approvals in my terms means that buyers job, assets, income tax, VOR's have already been determined and all that is needed is a purchase offer and a satisfactory appraisal. Same as your description...and we are clear about that but that is not what is happening in our area most of the time.
I have had maybe two in the past year that worked like clock work and the approval letter given up front was true to its content.
The most recent issue is actually with a BofA lender representing the buyer.
In fact, BofA has issued "approval" letters to two buyers that I know recently to which there is no way they could have properly ascertained their whole situation. I challenged that. YOU would think that the banks would have more qualified loan officers working for them now in light of what has happened and they do not.... They are telling the buyers to go out and find a property and they will be fine. NOT True in many cases...
Buyers think they are approved and ready to go only to find out life is about to get really rough......
I talked to I was blue in the face last week with a couple...I decided not to represent them as a buyers agent.
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I feel your pain. I have been on the listing agent side of this. A lot of listing agents around here are requiring the buyers to get preapproved with a loan officer they know, so there won't be any surprises. I do loans too. A good loan officer can anticipate problems that might lead to conditions and nip them in the bud before the loan goes to underwriting. The last FHA loan I did funded in about 3 weeks from the time I took the application.
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Problem is I have had buyers get approved with loan agents I know and still have had surprises.....I have found maybe two loan officers I can really trust in that respect.
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Pre approvals are still not worth anything. I want the buyer to go through underwriting and get a conditional approval within 30 days of executing a contract.
I have buyers right now just tell me that there is no way they can close in the time allowed by my approval because they waited until I got an approval to apply for their mortgage (they were pre-approved)
I told them that they would be responsible for all per diem fees, IF I CAN GET AN EXTENSION. If not, then they wasted everyone's time and will lose their earnest money.
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I think a pre approval really depends on the loan officer and their interpretation of pre approval.
Plus our own interpretation...... an approval with conditions is still a pre approval......conditions still have to be met...so even if U/W reviews ahead of time and stamps OK, things happen.....herein is where there lies some gray lines.......buyer went out bought something of substantial value that changed their fico score, buyer lost job, something showed up on credit report not present when first pulled, buyer changed jobs and/or the underwriter comes up with additional conditions after the 2nd or 3rd review within 24 hours of docs to be drawn...I had a listing whereby buyer was putting 40 % down and it was specifically noted that buyer had met U/W approval subject to satisfactory purchase contract and appraisal and we still had issues.......that required extension.....and additional paperwork and documentation from buyer ....that one should have been a slam dunk..
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Permalink Reply by Cindy Billman, CDPE, SFR on
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Unfortunately in today's market everything changes daily - I have noticed that many buyers today are denied loan approval when a year ago they would have been approved. I have "tightened" up on what must be said in a pre-approval letter - I want the buyers lender to submit a pre-approval letter that states everything has been verified and approved pending contract, appraisal and final underwriting approval but even with this I have buyers denied their loan at the last minute for various reasons. In our state promulgated contracts, if the other agent, buyer etc fails to meet the time frames on the contract and the property does not close, the earnest money is forfeited. If they need to extend the closing date, then ask for additional non-refundable earnest money or charge a per diem like the banks do. Too many agents rely on the other agents doing their job for them either because they are lazy or do not know what they are doing.
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