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 Bank of America short sale approved in this Bank of America Short Sale Case Study.

Bank of America Short Sale Case Study:

Property Location: Everett, WA - Snohomish County

1st Lender: Bank of America

Hardship:
“The reason of this letter is to explain why I couldn’t keep up with the payments on my house. Where I work, they had to reduce my hours and all employees’ hourly wages. I’m making less money that I was making originally, and bills began to go up.

“As my kids began to grow up, the demands began to get higher needs of of food, clothing, school supplies and other necessities. An everything started to come down on us. I tried my hardest to keep up with the payments. Due to the fact I felt forced, I applied for credit cards to pay off the monthly payments on the home, and that did not help the situation.

“Now I’m at the brink of where I have reached so many debts where I can barely keep up with any payments. And that is why I need to sell the house.”

1st Loan Balance: $228,500

Sales Price: $124,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $105,257

1st Deficiency Balance: $123,243

1st Settlement: Deficiency waived!

Timeline:
A signed offer to purchase the property for $124,000 was received on March 31, 2011. The Listing Agent forwarded the file to the Seattle Short Sales, Inc., case manager on April 4th, 2011. The necessary financial and legal documents were assembled, and the completed short sale package was submitted to the lender on April 19 along with an application to process the sale through HAFA.

The lender responded the following day with a request for additional financial documents in order to consider the HAFA application. The Seattle Short Sales, Inc., case manager immediately uploaded the documents that she had available, and requested the outstanding ones from the Listing Agent.

On April 29, Seattle Short Sales, Inc., received the Validation BPO (Broker’s Price Opinion) that had been requested. On May 16, the lender indicated that all required documents had been uploaded and that the file was currently in underwriting, which would take about two weeks to complete. On May 20, the file was approved to proceed through HAFA. On June 9, still not having heard anything from the lender’s negotiator, the Seattle Short Sales, Inc., case manager requested that the file be escalated.

On June 22, the lender presented a counter-offer of $130,000 purchase price, with no closing costs, but allowing the HAFA credit of $3,000 to the seller. The following day, the buyer agreed to come up to $127,000, which was the limit that their loan officer would approve. The Seattle Short Sales, Inc., case manager submitted this counter to the lender, working to get the 3% closing costs approved by the lender.

On July 11, the Seattle Short Sales, Inc., case manager contacted the lender for an update on the offer. The following day, the lender responded that they would probably have an approval within 3 days. On July 18, the Seattle Short Sales, Inc., case manager contacted the lender again requesting an update. On July 21, the case manager requested again for an update, to find out that a new negotiator had been assigned to the file. The new negotiator requested updated financial documents, and also indicated that the investor requested proof of funds available for the down payment.

The Seattle Short Sales, Inc., case manager revised and submitted documents for the entire file, reflecting a new extended closing date for the sale and a new HAFA application with that new closing date. On July 26, the case manager asked the negotiator to confirm receipt of all of the revised documents. The negotiator did, and also confirmed that the file had been submitted to the investor for final approval. and that an approval letter would probably be issued within two weeks.

On August 1, the lender requested additional financial documents, which the Seattle Short Sales, Inc., case manager provided. On August 5, the lender issued approval for the short sale to proceed through HAFA, and allowing the closing costs.

However, on September 14, the buyer indicated that their lender had undertaken an appraisal of the home, which came in at $122,000, and requested that the approved purchase price be lowered from $127,000 to $124,000. The Seattle Short Sales, Inc., case manager submitted this request, and the supporting documents, to the lender. On September 22, the case manager contacted the lender for an update.

On September 30, the lender issued a revised approval letter, dropping the sales price to $124,000, and dropping their approved minimum net proceeds from $107,934 to $105,257.

Result:
The homeowner was able to sell the house that he could no longer afford, paying off less than half of what he owed on the loan. Since the sale was processed through HAFA, he was waived of having to ever pay back the $123,000 deficiency, and he also received a relocation credit of $3,000. He avoided foreclosure, and walked away with no debts remaining from his home.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=90734

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 Bank of America short sale approved in this Bank of America Short Sale Case Study.

Bank of America Short Sale Case Study:

Property Location: Normandy Park, WA - King County

1st Lender: Bank of America

2nd Lender: Bank of America

Hardship:
“In 2003 my wife, daughter and I were living in a 3 bedroom home in Normandy Park, when we decided to care for my wife’s mother, who had recently been diagnosed with Alzheimer’s. The house turned out to be too small, so we bought a larger house in 2004, for $385,000, with the help of $700/month from my mother-in-law to help with the increased expenses.

“In the first 60 days, we incurred a plumbing problem that cost us $3,000, which we put on a credit card. The second year, we found that the deck had been impoperly installed and was infested with carpenter ants. That bill came to $17,000, and we took out a Home Equity Line of Credit, which also allowed us to remodel the 3 small upstairs bedrooms into two larger bedrooms. This came to $20,320. We also incurred expenses of $3,000 to remove trees that were leaning on to the neighbor’s property.

“We ended up having to remodel the downstairs so that my mother-in-law could adequately use it. This remodel came to over $125,000, and we asked for and received an increase in our Home Equity Line of Credit in 2006, because at this time our house had a market value of $695,000. At that time, we were planning to sell the home for a profit and settle our debts in 2009, which is when our daughter would be leaving for college and when we were estimating that my mother-in-law would require permanent 24 hour care.

“But by 2009, my wife had lost her job, and my mother-in-law had already been moved to long-term care, so we lost the $700/month from her that helped with expenses. In addition, we now had the college expenses for our daughter. While Bank of America granted us a loan-modification for the first mortgage, they could not help with the Home Equity Line of Credit, which is interest-only. I have paid $15,000 on it in the last 4 years, but the balance owing on it has not changed.

“We have struggled to make the payments for both loans for the past three years. The house still requires more repairs, our cars have over 100,000 miles on them and are close to 10 years old. We are at our credit card limit. With the mortgages, tuition costs, and the credit cards, our debt is increasing by $10,000 a year. We want to make everything work, but we think we need to absolve ourselves from our financial burden because we don’t see any other way out of our escalating credit card debt that we got ourselves into. We need to sell our house and get our accounts settled.”

Sales Price: $345,500

1st Loan Balance: $337,197

1st Deficiency Balance: $24,472

1st Settlement: Deficiency waived!

2nd Loan Balance: $153,069

2nd Deficiency Balance: $147,069

2nd Settlement: Deficiency waived!

Timeline:
On February 11, the listing agent submitted the documents to Seattle Short Sales, Inc. The homeowner was denied HAFA, and the completed short sale package was submitted to Bank of America on February 17 - still awaiting a buyer. On May 1, Bank of America declined the short sale request since no buyer had come forward.

On June 29, a signed offer to purchase the home for $300,000 was received. The Seattle Short Sales, Inc., case manager requested updated financial documents from the listing agent and seller, and prepared a new short sale package, which was submitted to the lender on July 11. The home was to be auctioned by REDC, but the Seattle Short Sales, Inc., case manager was able to determine that REDC is not allowed to process files with offers, and had them close out the file. Through July and early August, the Seattle Short Sales, Inc., case manager continued to provide the lender with additional documentation as requested.

On July 25, BofA as second lender approved the short sale, waiving the $147,000 deficiency balance. On August 9, BofA as first lender countered with a purchase price of $360,000, allowing 6% commissions, $6,000 to the second lender (also Bank of America) and requesting a $5,000 cash contribution from the seller. The buyers countered, and on August 17 the lender countered firm at $345,000. On August 19, the buyers accepted this purchase price. The Seattle Short Sales, Inc., case manager moved to postpone the trustee sale, currently scheduled for the following week, on August 26.

On August 22, the PSA addendum reflecting the new purchase price was submitted to the lender. But the following day, the trustee sale still appeared scheduled for the 26th, and the Seattle Short Sales, Inc., case manager contacted the lender again about postponing the sale. On August 24 the lender confirmed that the trustee sale had been postponed, and that they had until September 20 to close the short sale. They issued their written approval, as first lender, of the short sale the following day, on August 25, requesting a reduced cash contribution of $4,500 in order to waive the deficiency balance.

Result:
The homeowners, who had been beset with numerous unexpected repair bills and medical bills, as well as new tuition expenses for their daughter, were able to short sale the home they could no longer afford. They were waived of having to ever repay the $24,000 deficiency balance owing on their first mortgage, and the $147,000 deficiency balance owing on their second mortgage - a total savings of $171,000 of debt written off.

This means that they are now in a position to consolidate and pay off their credit card debts, and get back on the road to financial stability.

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=92224

To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=92225

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 Bank of America short sale approved in this Bank of America Short Sale Case Study.

Bank of America Short Sale Case Study:

Property Location: Issaquah, WA - King County

1st Lender: Bank of America

Hardship:
“In December 2007, my aunt and uncle approached me with an offer to work for them in eastern Washington. At the time, their offer sounded like a great opportunity to improve myself and at the same time increase my wealth. They wanted my assistance to take their company to a higher level and basically run the show as VP of operations.

“After careful consideration I made the move and left my job in Seattle. I put my home in Issaquah up for sale and began working with my aunt in Richland. After three months on the market, I was getting no offers on the home. At this point, being busy with this business, I moved my family to Richland at the end of the school year, and rented out the home in Issaquah for less than half of the mortgage payment, and made up the difference myself.

“This went on for a year and a half and I did raise the rent amount, however it still did not make the entire payment. I continued to improve the property and be a landlord at the same time. It all seemed to be working out.

“I had no idea that the economy was taking a turn for the worse. My new business in Richland was going south with higher than normal expenses, leading to less profit. I did get married at this point, and my oldest graduated and moved his life on.

“In November 2009 I raised the rent again, being another year for the renter. It was still not for the full amount of the payment. It proved to be too much for them as they went off and purchased a foreclosure.

“After a month of prep work on the house I put it back on the market. I am told with today’s economy that the balance owed is more than it is worth. I have spent all my savings trying to make up for the losses on this home and just cannot continue. My Richland business has folded and closed. I am currently employed by a local company making less than half of what I need to be making. I am told the job market is getting better, but I am getting no results on my searches. I, with the help of my wife, am barely getting by with the situation that I have gotten into and my only choice is to sell. I am told that it must be a short sale.

“I was originally told by Countrywide when I refinanced this home that if I ran into troubles I could refinance again for a lower rate and payment. I have asked for refinancing help but do not qualify any more, and even if I did, the payment would be higher. I should have followed my instincts on saying no to an interest-only loan.

“I have always made good decisions in my life. However, the past years I can’t seem to win. I do have a new bride and two sons that bring joy to my life. Thank you for your time and consideration.”

1st Loan Balance: $296,000

1st Loan Arrears: $1,770

Sales Price: $239,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $196,780

Timeline:
On September 29, 2010, a signed offer to purchase the home for $200,000 was received. The completed short sales package was submitted to the lender on October 14. On November 23, the lender’s BPO (Broker’s Price Opinion) came in at $265,000, which agents, buyers and sellers all felt was much too high for the property. The Seattle Short Sales, Inc., case manager worked with other parties to assemble details of the home’s listing history and information on the home itself in order to counter this BPO. A match between the lender's appraisal and the buyers' offer could not be found, and eventually this deal fell through.

The trustee sale was scheduled for March 4, 2011. On February 18 a new offer to purchase the home for $239,000 was received. However, the buyers were purchasing with an FHA loan, and indicated that they did not have funds to pay closing costs or the short sale coordination fee. The Seattle Short Sales, Inc., case manager worked with agents and buyers to see if, together, they could contribute enough to come up with these fees, and also to have the trustee sale postponed to April 8.

On April 12, the lender issued an approval for the short sale, with a purchase price of $239,000, waiving the deficiency balance.

On May 18, an appraisal undertaken by the buyers came in at $225,000 and also drew attention to some repairs that were required. The buyers agreed to be responsible for the repairs provided that the purchase price was lowered by $14,000, to their appraised value of $225,000. The following day, the Seattle Short Sales, Inc., case manager submitted a request for a price reduction to the lender.

On May 27, the lender agreed to this request, and issued a revised approval letter, with a sales price of $225,000 and acceptable net proceeds of $196,780

Result:
In a complicated case, where there were disputes about the value of the house, Seattle Short Sales, Inc., was able to convince the lender to drop the sales price from the value that their own appraisal had indicated, in order to make the deal work. The homeowners, caught up in the economic downturn, were able to go ahead short sale their home.

They paid off their mortgage with a $88,000 discount on the balance owing, and were waived of ever having to pay this deficiency back.

To download a copy of the original short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=85411

To download a copy of the revised short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=92187

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 Bank of America/Green Tree short sale approved in this Bank of America/Green Tree Short Sale Case Study.

Bank of America/Green Tree Short Sale Case Study:

Property Location: Issaquah, WA - King County

1st Lender: Bank of America

2nd Lender: Green Tree

Hardship:
“In July of 2009 I found myself unable to pay my mortgage due to my wife being laid off and my pay taking a significant pay cut. We searched for options to keep our family home and decided a loan modification was the only option at the time. We received our first trial payment on October 30th, 2009 and had made the payments as requested.

“We later found out that we were denied for the loan modification due to missing documentation. We had applied several other times in hope for a new program for a loan modification. We had finally been approved for a loan modification on January 6th, 2011, in hopes that we could keep our home. After receiving the documents and the offer from Bank of America it was to raise our mortgage that we had been struggling to pay by $373.39. We tried several times to negotiate the terms of the loan modification and were left with the options of a short sale or foreclosure.

“We had bought the house when our son was six months old and had put all of our savings into this house to make it our home. We fought for the home as long as we could with hopes of a loan modification. But that dream has not become a reality and we know there is nothing we can do now. We wanted to live here forever and intended for everything to work out.

“We have exhausted all of our options of saving our home and the only option at this time is a short sale of the property and to settle our debt with our lenders. We hope that you will consider our short sale so that one day we can buy a home again and make it our own for our family.”

1st Loan Balance: $281,595

1st Loan Arrears: $16,443

2nd Loan Balance: $70,400

Sales Price: $190,000

Approved Commissions: 5%

1st Loan Approved Net Proceeds: $165,569

2nd Loan Approved Net Proceeds: $4,224

Timeline:
On March 21 2011, a signed offer to purchase the home for $190,000 was received. On March 25, the documents and financial statements were received by Seattle Short Sales, Inc., and on March 30 the completed short sale package was submitted to the first lender. The Seattle Short Sales, Inc. case manager had the Listing Agent discuss HAFA with the sellers, as they would have to make a quick decision of whether or not they want to process that sale through HAFA. The sellers chose not to proceed with HAFA.

On April 4 and 8, Seattle Short Sales, Inc., followed up with Bank of America, as the file was still not showing up in BofA’s online system. On April 11, the completed short sale package was submitted to the second lender. On April 12, Bank of America resolved the system issues and indicated that a case manager would be assigned within 48 hours.

On May 2, Bank of America indicated that a BPO (Broker’s Price Opinion) had been ordered, and that no further information was required at this point. The following day, they indicated that the BPO was in, and the file was now under review in preparation for submitting to the investor.

On May 16, Bank of America requested additional financial documentation from the seller, including updated income and bank statements, which Seattle Short Sales, Inc., started to assemble. On May 21, the Bank of America negotiator indicated that the file was now under review. On May 24, Seattle Short Sales, Inc., submitted the uploaded financial statements to Green Tree, the second lender.

On June 1, Bank of America responded with a counter offer, which the Seattle Short Sales, Inc., case manager accepted on behalf of the seller. On June 9, Bank of America as first lender issued their approval letter for the short sale, for closing by July 14. On June 14, Green Tree as second lender issued their short sale approval, also for closing by July 14.

However, the buyer had not yet been able to confirm their funding, so the Seattle Short Sales, Inc., case manager asked both lenders to extend their approvals to July 25. Bank of America extended the closing date, but Green Tree stated that they would not extend beyond July 14. The case manager explained that the first lender had already agreed to the extension, and Green Tree then agreed also to extend the closing date to July 25.

Result:
The homeowners, after spending over two years trying to negotiate loan modifications, were left with a short sale as their only option to avoid being foreclosed upon. They were able to short sale their home, and pay off their first mortgage with $132,000 discounted from the balance owing, and their second mortgage with $66,000 discounted from the balance owing.

They were waived of having to pay back either deficiency - a total of $198,000 of debt completely written off - and able to move forward towards their dream of some day buying a new home for their young family.

To download a copy of the first short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=88397

To download a copy of the second short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=88398

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 Bank of America short sale approved in this Bank of America Short Sale Case Study.

Bank of America Short Sale Case Study:

Property Location: Marysville, WA - Snohomish County

1st Lender: Bank of America

2nd Lender: Bank of America

Hardship:
“My wife and I have always paid our mortgage and other bills and have outstanding credit. Due to our hardships, we regretfully are no longer able to pay our mortgage payments. We have pursued getting a loan modification for the last year and a half, and received a letter denying our request just this month. BAC Home Loan Services suggested a short sale as an option for us.

“We moved into our home a little over 5 years ago. Since then, we have added nearly $30,000 to our principal because we have been unable to pay our full mortgage. Along with the accrued negative amortization, our property value has dropped approximately $200,000 and we are upside down on the loan. Due to the economy, both of our teaching jobs have been eliminated. We have seen our monthly income drop by $3,000 per month in 2010-2011. Also our base salaries have seen a 10% reduction. Our mortgage payment is over 45% of our monthly income.

“In February of 2011 I accepted a job in Boise, Idaho, and now need to move from our current residence. We intended to pay what we owe, but because of the job loss, salary reduction, and now job relocation it did not work out. We wanted to live here forever and fully intended to make everything work. Now we desire to sell our house and get our accounts settled.”

1st Loan Balance: $546,418

2nd Loan Balance: $66,524

Sales Price: $425,800

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $360,074

2nd Loan Approved Net Proceeds: $0 (processed with 1st loan as a single approval)

Timeline:
On February 28, 2011, the homeowners received a signed offer to purchase their home for $435,000. On March 2, the Seattle Short Sales, Inc., case manager started to assemble the necessary documents for the short sale package. Several of the sellers’ financial documents were missing, and on March 14 the Seattle Short Sales, Inc., case manager re-requested them from the Listing Agent in order to be able to put together and submit the short sale package.

On March 16, Seattle Short Sales, Inc., attempted to initiate the short sale file with Bank of America, but the system indicated that the account was already active.

On March 21, it was determined that the seller was eligible for HAFA, and he was advised that he must contact HAFA himself. On March 30, the lender confirmed that a HAFA application could go ahead. Seattle Short Sales, Inc., continued to assemble missing financial documents from the seller, and to make continued contact to ensure that the HAFA application was progressing. On April 20, notice was received that there should be an answer to the HAFA application within two weeks.

On May 5, the buyer walked from the deal. Seattle Short Sales, Inc., checked in with the lender to make sure that the file was complete and that no further documents were required, as a new offer was expected. On June 1, the case was approved by HAFA with a listing price for the home of $425,800.

On June 3, a new offer from a new buyer to purchase the home for the asking price of $425,800 was received. New documents were prepared to submit to the lender, naming the new buyer. The short sale package was submitted to the lender on June 10.

Seattle Short Sales continued to check with the lender for updates. On June 17, only seven days after the short sale package was submitted, the lender issued an approval letter (regarding both loans) for the short sale.

Result:
The homeowners were able to sell their home, and head off to the new job and a fresh start in Idaho. Since the sale was processed through HAFA, they were waived of ever having to pay back the $187,000 total deficiency balance owing on the two loans, and they also received a $3,000 relocation credit. Because the HAFA application had already been initiated, the short sale approval took only two weeks from the day the second purchase offer was received.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=88315

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 Bank of America short sale approved in this Bank of America Short Sale Case Study.

Bank of America Short Sale Case Study:

Property Location: Burien, WA - King County

1st Lender: Bank of America

Hardship:
“I am unable to maintain mortgage payments on my property. I attempted to sell this property 2 years ago and was unsuccessful and I subsequently fell behind in my mortgage payments and HOA dues. I was forced to spend even more money to ready the condo for rental purposes so I could at least make mortgage payments. Thus I have had a tenant living there since November 2008. I was charging the going rate of $1,000 a month, which did not cover all monthly expenses for the unit.

“The real dilemma I’ve been faced with is that my tenant, who has been excellent in maintaining my property and was paying rent on time, has lost his job. This was in March 2010. I agreed to accept whatever rent he could pay, rather than evict him and risk not having any rental income for an unknown amount of months while attempting to rent, or finding a new tenant that destroys the place. The monthly payments averaged $700/month until August, 2010 when I was told that I would not get rent for August but would get $2000 in rent for September.

“I find that I am unable to cover all of my obligations to date as I have two credit cards in collection and I’m working with a settlement agency to clear up those issues. I am stretched to the limit and cannot afford to jeep losing money holding on to the condo. My first priority is my primary home, which is in dire need of a new roof and has other fix-it problems as well.

“I want to do a short sale or offer a deed-in-lieu for this property. I can guarantee that the property is in excellent conditions. This would allow me to maintain my primary residence, for which the mortgage is at the same bank. I’d rather lose one thing than everything.”

1st Loan Balance: $134,945

1st Lender Arrears: $855

Sales Price: $95,000

Approved Commissions: 5.5%

1st Loan Approved Net Proceeds: $82,169 plus $1,000 cash contribution

Timeline:
On October 11, 2010, Seattle Short Sales, Inc. received documentation from the real estate agent for the home to be listed for sale. On January 21, 2011, an offer to purchase the home for $90,000 was received. The Seattle Short Sales, Inc., case manager assembled all parties’ financial files, and on February 15 submitted the completed short sales package to the lender.

On February 18, the lender had the BPO (Broker’s Price Opinion) completed. On March 22, the lender countered the offer, requesting a purchase price of $95,000, approving the 6% agents’ commissions, but requesting a $100 cash payment from the seller. On March 24, the buyer’s agent indicated that the buyer’s lender had already completed an appraisal at $90,000, and would not approve a higher purchase price, but that the buyer would attempt to find another lender.

On March 27, the buyer agreed to raise the purchase price to $95,000.

On April 1, the Seattle Short Sales, Inc., case manager received confirmation from the lender that the seller’s cash contribution would make the lender waive the deficiency balance owing. On April 4, the lender indicated that they wanted to cut agent commissions to 5% in order to meet their minimum acceptable net proceeds of $82, 156. The listing agent agreed to a reduced commission in order to have the sale approved.

The Seattle Short Sales, Inc., checked in with the lender about progress on April 11, 12, 22, 25 and 29. On May 2, the lender issued a counter offer that changed only the closing date of the sale, to June 20, and held agent commissions at 5.5%. The Seattle Short Sales, Inc., case manager accepted this counter offer and waited for the approval letter.

Three days later, on May 5, Bank of America issued an approval letter for the short sale, but the approval stated specifically that “BAC Home Loans Servicing, LP and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due…” which meant that the homeowner could be responsible for paying back the $53,000 loan discount. The homeowner rejected this approval, and on May 9 Seattle Short Sales, Inc., contacted the lender’s negotiator to say that the homeowner was prepared to make a $1,000 cash contribution to have that deficiency language removed. The following day, the lender reissued the approval letter with clear language stating that they “will waive the remaining balance due on the above referenced loan and release the borrower from further obligation therein, and waive all rights to pursue further judgment or deficiency.”

Result:
The homeowner was able to sell the rental property that she could not make mortgage payments on, and able to protect her primary investment, the home she lived in. By rejecting the initial approval letter, which held her responsible for paying back the deficiency balance, and offering to make a cash payment of $1,000, she was waived of ever having to pay back the $53,000 deficiency balance on the loan.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=86895

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 Bank of America short sale approved in this Bank of America Short Sale Case Study.

Bank of America Short Sale Case Study:

Property Location: Federal Way, WA - King County

1st Lender: Bank of America

2nd Lender: Bank of America

Hardship:
“I’m writing this letter to explain the unfortunate set of circumstances that have caused me to become delinquent on my mortgage payments. Please understand that I have exhausted all financial resources including retirement and savings accounts and borrowing money from family. At this point, I have done everything in my power to meet my monthly mortgage obligation but unfortunately I have fallen short and am no longer able to do so.”

“On June 30, 2008, my employment contract expired. I was ineligible for unemployment benefits because it was an “independent contractor” position. My salary had been $5,000 each month. I was unemployed for approximately 6 months when I accepted another position in January 2009, where my current annual salary is now $36,500. The substantial decrease of approximately $25,000 annually has put me in a very difficult financial position.

“I have accumulated a significant amount of debt in an attempt to pay my mortgage each month and meet my other financial obligations. My HOA dues have significantly increased since I purchased the home in April, 2007, y $98 each month, and are now $375 each month. It is anticipated that the HOA will have future “major” assessments of the roof and to maintain the structural integrity of the buildings. With my current annual salary I will be unable to pay for these assessments in the foreseeable future.

“I applied for a home loan modification with Bank of America in May of 2009, however after several months of phone calls I was finally told that my paperwork was “lost” and that I needed to reapply. I reapplied in January, 2010, and I am currently awaiting approval from the underwriter. Ir was my understanding that the loan modification process would take 3-6 months, however it has taken almost a year.

“Please understand that it has always been my intent to remain in my home, however at this time I think it prudent that I sell my home and settle my accounts.”

1st Loan Balance: $177,000

1st Loan Arrears: $2,500

2nd Loan Balance: $33,000

2nd Loan Arrears: $278

Sales Price: $115,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $100,138

2nd Loan Approved Net Proceeds: $1,860

Timeline:
On October 23, 2010 a signed offer to purchase the home for $115,000 was received. On October 27, Seattle Short Sales, Inc., indicated to the homeowners what missing documentations was required to complete their short sale request, and on November 11 the short sale package was submitted to the lenders.

On November 25, Bank of America acknowledged receipt of the package, and indicated that they had ordered a valuation of the property and assigned a negotiator to the case. On December 10, they indicated that they had the valuation, and were evaluating the seller for possible participation in HAFA. specifying $1,859 to the second mortgage and including excise taxes, and indicating that the homeowners HAFA credit would appear on a separate worksheet. They also requested 2008 and 2009 financial documents (bank statements and pay stubs).

On December 16, the lender countered the short sale offer, accepting the $115,000 sales price and 6% brokers’ commissions,

On January 10, 2011, the lender (dealing with both loans) issued a letter approving the short sale, for closing by February 15. Since the short sale was processed through HAFA, their were no deficiency judgments against the homeowner, who also received the $3,000 relocation credit for completing the sale.

Result:
The homeowner, who was unemployed for six months before finding employment at a reduced wage, was able to sell her home: avoiding foreclosure, and relieving herself of a mortgage that her changed financial situation had made unmanageable. She paid off both loans to Bank of America, with $110,000 discounted from the total amount owed. Since the short sale was processed through HAFA, she was waived of ever having to pay back this deficiency, and additionally received a $3,000 cash payment as a relocation credit.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=77666

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 Bank of America short sale approved in this Bank of America Short Sale Case Study.

Bank of America Short Sale Case Study:

Property Location: Everett, WA - Snohomish County

1st Lender: Bank of America

Hardship:
“I am 71 years old and will be retiring this year. I have maintained this rental property with a large negative cash flow for more than three years, and do not have enough income in retirement to continue to do so. When the existing tenant heard I was in the process of selling they left for other accommodation. Based on a recent survey of the rental market in the area, I will not be able to get a new tenant that would pay enough to cover the $2,400 mortgage.

“The income that my wife and I receive is entirely from Social Security, and is just enough to pay the mortgage on our own home and our other household expenses, insurance, and medication payments. I have been living for the past 30 years with a serious heart condition, having had two open heart surgeries, and my wife has rheumatoid arthritis and needs bi-monthly infusions to keep her condition stable.

”If I was younger, with many years of employment in front of me, I would not even consider this course of action, as I understand it will impact my credit rating, which I have always protected vigorously. But with the property’s value currently about $100,000 below the mortgage balance, I doubt we have enough years left to wait for it to appreciate to a point where I could sell it for the mortgage value. I have, to this point, invested about $90,000, which depleted out retirement savings.”

1st Loan Balance: $419,006

1st Loan Arrears: $26,753

Sales Price: $260,000

Approved Commissions: 5%

1st Loan Approved Net Proceeds: $232,140

Timeline:
On August 21, 2010, a signed purchase offer was received for $260,000, and on September 1 the short sale package was submitted to the lender. On September 11, the lender indicated that they had assigned a short sale specialist to the file. On September 17, the lender indicated that all of the valuations had been completed and the package would be sent to the investor. On October 1, the lender countered the offer, accepting the sales price of $260,000 but lowering the seller’s credit and agents’ commissions, and also requested additional financial information,

Seattle Short Sales worked with both buyers and sellers to discuss the lender’s offer, and they came to an agreement on all terms except for the lender’s requirement to drop payment of the Excise Tax. Seattle Short Sales explained to the lender that this is a non-negotiable fee applied to every short sale in Washington state, and the lender accepted this fee.

On October 19, the mortgage insurance (MI) company indicated that they wanted a $10,000 cash contribution from the seller - something the lender’s negotiator had overlooked when indicating that they would approve the file. A new negotiator was assigned. The seller indicated that he could contribute $2,000, but as he was supporting other family members it would be impossible for him to come up with more, given his income. The MI refused the $2,000 counter, and also refused offers of receiving a promissory note for the $10,000, and threatened to close the file; they indicated that they would, however, accept a $25,000 promissory note. On October 25, the lender issued an approval letter for the short sale.

Result:
The homeowner’s primary goal was to unload an investment property that he could no longer rent out at a rate that would cover mortgage payments, and to protect his credit rating by avoiding foreclosure. He was able to sell the home, pay off the loan with $214,000 discounted from the money owed on it, and save himself from foreclosure and the impact it would have had on his credit rating.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=75555

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 Bank of America short sale approved in this Bank of America Short Sale Case Study.

Bank of America Short Sale Case Study:

Property Location: Arlington, WA - Snohomish County

1st Lender: Bank of America

Hardship:
“It has been a little over two years now since we made the decision to become homeowners. We went in with good intentions and wanted to make everything work. Unfortunately, things have not turned out the way we intended them to. With hours being cut at work we find ourselves becoming more and more in debt.

“Of course our first priority is the monthly house payment and other bills that go along with the house. We are struggling though to make ends meet and have been resorting to using our credit cards to make other monthly payments. We want to sell the house and get our debt paid off. Please work with us and this buyer to help make this short sale happen.”

1st Loan Balance: $237,897

Sales Price: $157,000

Approved Commissions: 5%

1st Loan Approved Net Proceeds: $137,629

Timeline:
On March 8, 2010, the homeowners received a signed offer to purchase at $157,000, and on April 16, 2010, Seattle Short Sales filed the completed short sale submission request and supporting documentation with the lender. On May 4th, the homeowners completed supporting documents to assist with the approval. Through the month of May, Seattle Short Sales continued to contact the lender about progress of the case, pressing them to move forward.

On June 1, Seattle Short Sales contacted lender’s negotiator about delays, emphasizing that buyers’ financing approval expires in early July and they are pushing to close by the end of June. Throughout June, Seattle Short Sales contacted negotiator to escalate the case, and finally heard from the lender on June 23 that a new negotiator had been assigned. Through July, Seattle Short Sales continued to push lender for either an approval or information about a counter-offer. On August 2, the lender requested updated HUDs, which Seattle Short Sales provided the following day.

On August 9, the lender completed an updated property valuation, and the file moved to the negotiations phase. Seattle Short Sales initiated contact with other parties (broker, buyer) to move ahead with purchase, but on August 21 the buyers indicated that they would now not proceed with the purchase. On August 27, the lender’s new negotiator initiated contact and requested a letter explaining why the homeowners were unable to provide a cash payment or promissory note, and also provided a counter offer accepting most terms except for lowering closing costs value by $500. The agent initiated aggressive marketing of the property to secure new buyers as soon as possible, and also contacted buyers’ agent to inform buyers that the sale approval was going ahead. The following day, the buyers returned to the table.

On September 2, Seattle Short Sales contacted lender pressing them about urgency to issue final written approval. On September 15, the lender indicated that they were submitting all info to the investor for approval, and a week later they indicated that the seller must provide a $5000 cash contribution to the mortgage insurance company. Seattle Short Sales countered, indicating that neither buyer nor seller has the cash available, and suggested a no-interest promissory note; sellers decide to withdraw from their 401k in order to advance the sale. Seattle Short Sales moved to negotiate no deficiency obligation in turn for this payment. Through September, Seattle Short Sales continued to push lender for approval, as buyers’ financing offer expiry date was October 5th. On October 4th, the lender issued the short sale approval letter.

Result:
The homeowners received approval to short sale the home that they could no longer afford payments on, with a $100,000 discount on the funds owed, and no cash payment or promissory note payable to the lender.

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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