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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