Case Studies

Learn how to get your ASC/Bank of America short sale approved in this ASC/Bank of America Short Sale Case Study.

ASC/Bank of America Short Sale Case Study:

Property Location: Kirkland, WA - King County

1st Lender: ASC

2nd Lender: Bank of America

Hardship:
“Due to the financial and economical crisis in 2007 in my line of work as an electrical sub-contractor, I have had great losses, and therefore was not able to sustain my previous income. Due to this disadvantage, I have been in great financial difficulty and unable to keep up with my payments.

“This crisis has been further increased by a health crisis of my wife and subsequent complications. Also my daughter had to have surgery which further created a hardship on me.

“Therefore, I would sincerely appreciate it if you would consider this short sale.”

Sales Price: $200,000

1st Loan Balance: $338,026

1st Loan Arrears: $26,867

1st Deficiency Balance: $189,687

1st Settlement: Deficiency waived!

2nd Loan Balance: $80,731

2nd Loan Arrears: $6,115

2nd Deficiency Balance: $78,846

2nd Settlement: Deficiency waived!

Timeline:
On April 13, 2011, a signed offer to purchase the home for $200,000 was received. The Listing Agent passed the file to a Seattle Short Sales, Inc., case manager on May 13.

On May 15, the Seattle Short Sales, Inc., case manager requested documents including financial and tax documents, hardship letter, and title report from the Listing Agent. Some of these documents were provided on June 7 but with errors, and on June 9 the case manager requested the corrected documents. The corrected documents were provided by the Listing Agent on June 13 and June 20. On June 21 the Seattle Short Sales, Inc., case manager submitted the completed short sales package to the first lender (ASC), with a request that the short sale proceed as a HAFA transaction, and initiated the case online with the second lender (Bank of America).

On June 30, ASC indicated that the file was complete and under review for HAFA qualification. On July 5, a negotiator was assigned by BofA, and on July 12, the ASC indicated that the request to process the sale through HAFA was denied, but that the file would proceed as a traditional short sale and no foreclosure sale was scheduled.

On July 18, the BofA negotiator requested additional financial documents, which the Seattle Short Sales, Inc., case manager provided on July 21. On July 26, ASC assigned a negotiator to the case. On August 9 they indicated that a different negotiator was to be assigned.

On August 10, ASC requested additional financial documents as well as some missing documents from the seller, and the Seattle Short Sales, Inc., case manager passed that request on to the Listing Agent that same day. On August 23, the seller provided some of the requested documents, but they were incomplete.

On September 1, Bof A as second lender countered the the settlement offer. The Seattle Short Sales, Inc., case manager requested an update from the first lender before responding to it. On September 9, ASC confirmed that the case was still moving forward and that no foreclosure sale was scheduled, and they were reviewing the file. On September 16, BofA requested additional financial documents, which the Seattle Short Sales, Inc., case manager uploaded that same day.

On September 16, ASC assigned a new processor to the case. On September 22, they requested additional updated financial documents, which were provided. On September 26, ASC provided a counter offer, accepting the $200,000 sales price but removing some of the closing costs and lowering commissions to 5%. On September 29, the Seattle Short Sales, Inc., case manager countered back, with commissions at 5.5%, retaining some of the closing costs, and extending the closing date to November 17.

On October 4, ASC countered back, accepting terms except for the commission, which they kept at 5%, saying that that was a requirement of the investor. The offer was countered back and forth twice more, and on November 2 ASC issued an approval letter for the short sale, waiving the deficiency balance.

Meanwhile, on October 20, BofA had assigned a new negotiator to the file and requested that the documents be uploaded again. The requested documents were uploaded, and on November 7 the Seattle Short Sales, Inc., case manager contacted the new negotiator about reviewing the uploaded documents. On November 21, the case manager contacted BofA again, requesting that they expedite the approval. The BofA negotiator indicated that they were still awaiting results of the appraisal.

On November 29, the Seattle Short Sales, Inc., case manager contacted BofA with an urgent request, explaining that they had been working on the file for two months, and that the first approval would expire in 17 days. BofA escalated the file to a specialist who would review the offer in the next 48 hours.

On December 12, BofA provided a counter offer, which the Seattle Short Sales, Inc., case manager accepted. On December 16, BofA issued an approval letter for the short sale. The Seattle Short Sales, Inc., case manager immediately contacted the first lender with a request to extend their approval. The approval was extended to close by December 30.

Result:
The seller was able to sell the home that he could no longer afford. He paid less than half of the balance owing on the first mortgage - a discount of $189,687 - and less than 10% of the balance owing on his second mortgage - a discount of $78,846.

The total discount he received on his mortgage payments was over $268,000 - and he was waived of ever having to pay back those deficiency balances!

To download a copy of the 1st short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=96150

To download a copy of the 2nd short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=97488

If you are a homeowner, and would like to learn more about short selling your home, please go to: http://seattleshortsales.com/homeowners/

If you are a real estate agent, and would like to learn about our no-fee short sale service, please go to: http://seattleshortsales.com/agents/

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Learn how to get your GMAC/Chase short sale approved in this GMAC/Chase Short Sale Case Study.

GMAC/Chase Short Sale Case Study:

Property Location: Duvall, WA - King County

1st Lender: GMAC

2nd Lender: Chase

Hardship:
“My husband and I legally separated in July, 2010. He continues to live in the house while I took a new job in the state of Kansas and now reside there as well. Since the time of our separation, we have continued to pay our mortgage each month without fail, and to date have not been late with any payments.

“I was recently informed by my employer that, effective next month, my salary will be reduced by approximately 30%. As a result, I will no longer be able to contribute 50% of our overall mortgage payments as I have been since July 2010.

“We had every intention of trying to keep the house, but don’t see how that is possible with the reduction of my income plus the added expense of me living in another state and having to rent an apartment in addition to having the mortgages.

“While we would like to sell our home and settle up our accounts, the current real estate conditions do not allow us to market or sell our home for anything close to what we currently owe. We take our responsibilities very seriously, and are asking for your assistance with this matter.”
Sales Price: $265,000

1st Loan Balance: $309,000

1st Loan Arrears: $0

1st Deficiency Balance: $66,075

1st Settlement: Deficiency waived!

2nd Loan Balance: $88,582

2nd Loan Arrears: $0

2nd Deficiency Balance: $83,289

2nd Settlement: Deficiency waived!

Timeline:
On February 26, 2011, the homeowners initiated the short sale process and listed the home. The Listing Agent passed the file to the Seattle Short Sales, Inc., case manager.

On June 23, a signed offer to purchase the home was received. The following day, the Seattle Short Sales, Inc., case manager requested updated financial documents from the seller. On June 27, a BPO (Broker’s Price Opinion) was requested. The homeowners provided the financial documents on July 1, and on July 5 the Seattle Short Sales, Inc., case manager submitted the completed short sale package to the lender.

On June 23, the Seattle Short Sales, Inc., completed various tasks requested by the lender. Through July, the case manager continued to check in with the lender regarding progress. On August 17, further financial documents requested by the lender were provided. The lender countered the offer, requesting that the purchase price be raised. On August 24, the buyers agreed to a price of $265,000, and that addendum was submitted to the lender.

Through the rest of August, the Seattle Short Sales, Inc., case manager attempted to contact the lender’s negotiator. On August 30, Chase as first lender issued an approval for the short sale.
 On August 31, Chase as second lender assigned a negotiator to the file. Their negotiator ordered an interior BPO. Through the month, the case manager continued to follow up with the Chase negotiator. On September 21, the negotiator indicated that they still were waiting on the interior BPO.

On September 29, Chase as second lender assigned a new negotiator to the file. Through October, the case manager continued to follow up with the Chase negotiator. On October 21, Chase as second lender issued their approval for the short sale. The Seattle Short Sales, Inc., case manager obtained an extension of the approval issued by GMAC, the first lender, so the sale could close.

Result:
The homeowners were able to short sale their home before defaulting on either of the mortgages. They avoided foreclosure, and also avoided the serious damage to their credit score that default on mortgage payments would have caused. They paid both mortgages with a total of $149,000 discounted from the balances owing, and they were waived of ever having to pay back those deficiency balances.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=92394

To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=94744

If you are a homeowner, and would like to learn more about short selling your home, please go to: http://seattleshortsales.com/homeowners/

If you are a real estate agent, and would like to learn about our no-fee short sale service, please go to: http://seattleshortsales.com/agents/

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Learn how to get your Nationstar short sale approved in this Nationstar Short Sale Case Study.

Nationstar Short Sale Case Study:

Property Location: Lake Steven, WA - Snohomish County

1st Lender: Nationstar

Hardship:
“In February 2007, I was awarded a nice promotion at my job. Now that I was making more money, I decided to live a dream of mine and purchase a home. I found a house that I fell in love with that overlooks a lake. Even though I thought the payments might be a little tight, I had no doubt in my mind that I could afford the payments due to the amount of overtime I was getting for years at my job. Since I work in a hospital, overtime was always available.

“In the first year, I had no problems making my payments. Things then started changing at my job. The economy took a downturn and my hospital got hit hard. As a cost-cutting measure, the hospital eliminated all overtime. I did not realize how much I relied on it until I didn’t have it any more.

“From 2008 till now, I found ways to pay my mortgage, but I had to put all my monthly bills on credit cards. I have been doing this for approximately three years. Now it’s gotten to the point where I have reached the limits of all my credit cards and cannot get any more.

“I have done all I can to fulfill my financial obligations. I have tried to refinance, but the bank wasn’t willing to work with me. Now that I’ve gotten to this point, I realize a refinance would not help much anyway.

“The stress of the house has taken everything out of me, and I’ve come to realize that I have no choice but to try and sell my house. Since my house is worth $90,000 less than what I bought it for, I am requesting your help to approve a short sale.

“The house was built in 2004 and is in excellent condition. I have worked hard to keep the house in great shape, and will continue to do so throughout this process. There are no major repairs that need to be done. I want to thank you for taking the time to consider helping me. I am truly sorry about the mistake I have made.”

Sales Price: $203,885

1st Loan Balance: $358,000

1st Loan Arrears: $2631

1st Deficiency Balance: $180,281

1st Settlement: Deficiency waived!

Timeline:
On January 26, 2010, the Seattle Short Sales, Inc., case manager attempted to initiate the file as a HAFA short sale with Nationstar online, but was unable to because there was no buyer for the property yet. She contacted a Nationstar negotiator, and on January 28 was able to initiate the case. On February 15, and again on March 6, she contacted the negotiator at Nationstar to ensure that the file was progressing.

On May 5, a signed offer to purchase the home for $200,000 was received. On May 19, the lender requested updated financial documents from the seller, which the Seattle Short Sales, Inc., case manager started to assemble. Through June, the case manager continued to contact the Nationstar negotiator, to try to find out why the file was not progressing. On June, a Nationstar representative indicated that all documents had been received, and that the case should be progressing; a new negotiator was assigned.

On June 29, the Nationstar negotiator indicated that the file was now with the investor. The Seattle Short Sales, Inc., case manager continued to follow up with the lender and to postpone the upcoming trustee sale through the first three weeks of July. On July 23, the lender came back with a counter offer, requiring a net proceeds about $10,000 higher than the current offer.

The Seattle Short Sales, Inc., case manager worked with all parties to try to meet the lender’s requirements - by having buyers raise the purchase price, by reducing attorney fees by $1,000, and by having the seller pay utilities and some of the real estate taxes. On August 4, the buyers agreed to raise the purchase price to $203,885. They also worked with the seller and lender to negotiate a deficiency waiver in turn for a $500 cash contribution by the seller.

On August 17, the lender issued an approval letter for the short sale. A closing date of September 20 was agreed upon, but the Seattle Short Sales, Inc., case manager felt that this was too close to the scheduled trustee sale on September 23, so she worked to have the trustee sale postponed just in case, and also with the escrow agent to make sure that the funds for the sale moved immediately upon closing, without any delays. On September 16, the lender issued a revised approval letter for the sale.

Result:
The homeowner was able to sell the home that he could not afford, paying off only 50% of the balance owing on his loan - a savings of $180,000. By paying a $500 cash contribution upon closing the deal, he was waived by the lender of ever having to pay back the deficiency. He avoided foreclosure, freed himself of his mortgage debt, and was able to get a new start in life.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=91733

If you are a homeowner, and would like to learn more about short selling your home, please go to: http://seattleshortsales.com/homeowners/

If you are a real estate agent, and would like to learn about our no-fee short sale service, please go to: http://seattleshortsales.com/agents/

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