Case Studies

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/

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

GMAC Short Sale Case Study:

Property Location: Mountlake Terrace, WA - Pierce County

1st Lender: GMAC

2nd Lender: GMAC

Hardship:
“In April 2010, my husband was given a promotion for work, and with that promotion he was required to relocate out-of-state.

“After having our financial situation analyzed, we decided that it was best for us to take the promotion and relocate. Once the decision was final, we started to fix up our home in preparing to sell or rent out until the economy increased. We continued to spend money on fixing up our home in order to make it as ready as possible for people to move in.

“As it got closer to our relocation date, we started working with a realtor to guide us in the right direction, as far as finding a renter or listing the home for sale. Our mortgage payment was $2,250, and we could only find renters who would pay $800, with that we would have had to come up with the difference. That was way too much money for us to come up with. We listed it for sale, and over the next five months lowered the price three times, but there were still no takers.

“I really love my house, but I know that we cannot afford to keep it and pay rent somewhere else. I want to sell the home, avoid foreclosure, and salvage our credit. I know that a foreclosure on my record will affect me for years to come. My attorney has advised me to file for bankruptcy, but I prefer to avoid further destruction of my credit. I just want to undertake a short sale, move on, and start over.”


1st Loan Balance: $245,492

1st Loan Arrears: $19,838

2nd Loan Balance: $56,332

2nd Loan Arrears: $2,080

Sales Price: $115,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $97,231

2nd Loan Approved Net Proceeds: $3,000

Timeline:
On March 12, 2011, the homeowners finally received a signed offer to purchase the home for $109,000 - approximately one third of the amount owing on their mortgages. On March 31, the Listing Agent contacted Seattle Short Sales, Inc., to facilitate with the sale, and on April 6 Seattle Short Sales, Inc., submitted the case and supporting documents to GMAC as 1st lender.

On April 21, Seattle Short Sales, Inc., contacted the lender for news or updates. On April 28, the lender indicated that the minimum sales price that would reflect their BPO (Broker’s Price Opinion) and satisfy their requirements would be $115,000. Seattle Short Sales, Inc., contacted the Listing Agent, to see whether the buyers would come up to this price, and also to request missing financial documents from the sellers.

On May 4, the Seattle Short Sales, Inc., case manager contacted the Listing Agent again regarding the buyers’ response to the revised purchase price and the sellers’ missing financial documents.

The buyers refused the new purchase price, but the following day, on May 5, a new offer was received from new buyers for $115,000. Seattle Short Sales, Inc., facilitated the discussions between the original buyers, who had not rescinded their offer, and the sellers, explaining to the new buyers that their purchase price could not be approved by the lender, and that if the sellers did not accept the new offer they would lose their home to foreclosure: they had no choice but to accept the new offer.

The original buyers agreed to rescind their offer. Seattle Short Sales, Inc., worked to revise the documents with the new buyers and revised sales price and resubmit them to GMAC as 1st lender. On May 10, the completed short sale package was submitted to GMAC as 2nd lender as well.

On May 13, GMAC as 1st lender issued an approval letter for the short sale, accepting the net proceeds as “full and final satisfaction of the first mortgage indebtedness” (i.e. waiving the $168,000 deficiency balance owing). On May 17, GMAC as 2nd lender issued their approval for the short sale, also “forgiving any amounts due” (i.e. also waiving the $55,000 deficiency balance owing).

Result:
The homeowners, relocating because of employment, were stuck with a home that was worth only one third of what they owed on their two mortgages. They were able to avoid foreclosure by short-selling their home, and had both deficiency balances waived - a total of $223,000 of debt forgiven. They were able to achieve their goals of salvaging their credit rating, moving on, and starting over in life.

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=87265

To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=87265

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/

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

GMAC/SLS Short Sale Case Study:

Property Location: Issaquah, WA - King County

1st Lender: GMAC

2nd Lender: SLS

Hardship:
“I have reached a point in my life that I am in financial fallout. I have struggled making ends meet since my separation with my wife in January 2005. I lost $110,000 of household income due to my ex-wife’s departure. At the time of our separation our boys were 14 and 16. I thought it was best to keep the house intact and not sell it, so that the boys would have an environment for their remaining high school days. This turned out to be a mental blessing, but a financial disaster.

“My 14 year old was Mr. Popular in school, but took the separation harest, quitting school and ending up in a metal hospital for 3 months. At that time, we had great health care. During the next 18 months, due to his mental state it caused me not to work the normal hours in my business , which was mostly travel every other week out of the state. This put me into a poor financial state.

“In the meantime, the bill for my divorce lawyer was piling up. We got divorced in October 2006 which was during the time the housing market was growing stronger every day. I had to get my wife (still at the time) off the title and give her the equity of the home after some additional joint bills were paid to settle the divorce.

“We had the house appraised, which came in at $740,000. In the meantime, my American Express balance was increasing dramatically due to the expenses of running a business. My house payment went from $3,200 to almost $5,000 per month due to a refinance I did in October 2006. In addition to all of this, I had the hard floors refinished, the carpet replaced, and the outside of the house painted, and I replaced the tile countertops to granite in the kitchen. I had just finished redoing the entire home with full intention of living there for a long time to come.

“The economy has contributed to my financial mess as well as the housing market. I should have sold the house at the time of the divorce, but kept it for my boys. It has lost over $250,000 in value. But if I had sold it at that time, I am not sure what my younger son would have done. He was suicidal during the separation according to notes from the hospital.

“I am sorry that this has happened. My intent was to live here for a long time. My circumstances have turned 180 degrees. I want and need to sell my house and get my debt paid off. I am out of money and don’t want to see the house foreclosed on.”

1st Loan Balance: $516,640

1st Loan Arrears: $9,000

2nd Loan Balance: $165,000

2nd Loan Arrears: $15,915

Sales Price: $515,000

Approved Commissions: 5%

1st Loan Approved Net Proceeds: $457,747

2nd Loan Approved Net Proceeds: $3,000 plus $25,000 cash payment

Timeline:
On October 27, 2010, a signed offer to purchase the home for $500,000 was received. The completed short sale packages were submitted to both lenders on November 10. Through the following month, the Seattle Short Sales, Inc., case manager worked towards achieving a deal that met both first and second lenders’ minimum acceptable proceeds by brokering a series of counter-offers between all parties. The second lender originally insisted on a $49,000 payment, but first would only pay $3,000. By negotiation, eventually an agreement was made for a $28,000 payment that came in part from buyer, from seller, by reducing the broker’s commission, and from the first lender;

The first lender issued their approval letter for this sale on January 7, and the second lender issued their approval letter on January 11, contingent on closing by January 31, 2011.

Result:
The homeowner, dealing with lowered household income following his divorce as well as unexpected medical bills for his son, was able to short sell his home, receiving a total discount of $246,000 on the two mortgages. Significantly, he was waived of ever having to pay back this deficiency balance, and so was able to make a new financial start in life.

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=77768

To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=77767

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/

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

GMAC/Citi Short Sale Case Study:

Property Location: Duvall, WA - King County

1st Lender: GMAC

2nd Lender: Citi

Hardship:
“My wife and I are separated and in the process of divorcing. We had anticipated a dual income situation when we purchased our home. She no longer wants the house and I can’t afford to keep it alone. When I initially purchased the house, I was able to work more overtime than is currently available, making it extremely difficult if not unfeasible to keep up the payments now.

“With my current and foreseeable future financial situation, I won’t be able to afford to pay my mortgage and all the credit that I am responsible for. I have exhausted my retirement funds to pay some of my bills and can not take any more money out of that account. My debt to income ration is prohibitive to any kind of financing.

“I am deeply disappointed and humbled to be in this siutation and would like to avoid the further embarrassment of a negative credit connotation or foreclosure.”

1st Loan Balance: $251,079

2nd Loan Balance: $67,363

Sales Price: $207,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $179,669 - 178.619 on last revision

2nd Loan Approved Net Proceeds: $4,050

Timeline:
On October 30, 2010, a written offer to purchase the home for $200,000 was received, and on November 17 the completed short sale package was submitted to the lenders. The Case Manager for Seattle Short Sales, Inc., requested financial information from the seller that he knew that the lenders would require in order to approve the file. On NOvember 24, the 2nd lender’s negotiator officially requested this financial information, and on December 3 Seattle Short Sales, Inc., repeated the request to the seller to provide these financial documents.

On December 9, the first lender countered the short sale offer, asking for a sales price of $217,000 or else requesting that sellers/Seattle Short Sales, Inc., provide documentation to show that the offer on the table represents fair market value. The case manager from Seattle Short Sales Inc. managed to negotiate down to have the lender accept a purchase price of $207,000, with no deficiency balance owing by the seller on either loan.

The first lender issued an approval letter for the short sale on January 5, 2011, and the second lender issued their approval letter on January 20. On February 3, at the request of Seattle Short Sales, Inc., the first lender issued a revised approval letter which added a commission for the buyer’s agent as well as a full payoff for second lien requirement. and reduced the minimum acceptable net proceeds by $1,000, and extended the closing date to February 28.

Result:
The homeowner whose marriage had fallen apart, and who could not afford the home on his own single income, was able to avoid foreclosure by undertaking a short sale of the property. He received a $133,000 discount on the balance owing on the two loans, and was waived of any responsibility of ever having to pay this deficiency back.

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=77604

To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=78622

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/

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

GMAC Short Sale Case Study:

Property Location: Seattle, WA - King County

1st Lender: GMAC

Hardship:
“We purchased our family home in January 2006 with the intention of living in it for at least thirty years. We have put well over $90,000 into this home. We put $40,000 into the down payment, and have put over $50,000 into improvements.

“Unfortunately, we can no longer afford to maintain this home and have been taking money out of our kids’ college fund to pay for home maintenance. We have 3 small children, and are continually struggling with the rising costs of food, diapers and formula. Our childcare situation has dissolved as well, and my wife will now have to cut back her work hours significantly to stay home with our 3 young children.

“All of the financial stress we are dealing with has caused an enormous strain on our marriage. We are trying to maintain a positive relationship for our 3 small children. We have decided to relocate to Texas, for work and more affordable living.

“As a result of our upcoming move, we will be unable to maintain our mortgage payment in Seattle as well as a rental payment in Texas. We cannot rent this house out, as the rental income will be significantly less than the mortgage payments. We know a loan modification is not an option in our situation.

“We are trying to be honorable and responsible by doing everything we can to continue to make our payments and sell our home for a fair price. At this point we are asking for your help to facilitate a short sale of our home rather than a foreclosure, which would be our next step if we cannot obtain a short sale. We know we are upside down on our mortgage and are unable to pay the difference. We feel that a short sale will be beneficial to both parties.”

1st Loan Balance: $393,270

Sales Price: $349,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $306,758

Timeline:
On March 5, 2010, the short sale package was submitted to the lender, but on March 16 the lender denied the short sale request, stating as a reason that the loan was current. On March 23, a new written offer to purchase for $378,500 was received and Seattle Short Sales resubmitted the file to the lender. Lender agreed to look at the offer, but indicated that make no promises about reopening the case until lenders are at least 30 days behind in payments; lenders stopped making payments. On April 28, still waiting for lender approval, the buyers withdrew their offer.

On May 12, a new BPO (broker’s price opinion) was completed, and the home was relisted for $373,000, and on May 23 a new signed offer to purchase at that price was received. Through late May and early June, Seattle Short Sales contacted the lender repeatedly, attempting to reach the negotiator so as not to lose these buyers. On June 15, the lender indicated that the sale would like be approved, but closing costs would not be covered. Seattle Short Sales worked with parties to raise purchase price to $379,500, which would cover $8,000 closing costs. The investor indicated that they would not consider any more than $2,000 in closing costs. On June 28, the lender approved the short sale with $8,000 closing costs, but on July 10 the buyers backed out of the deal following issues unknown to the sellers that were revealed by a home inspection.

On August 21, the home was relisted at $349,000. On September 4, a new signed offer to purchase for that price was received, and Seattle Short Sales requested the lender to reopen the file, taking into account repair estimates associated with the previous offer when cosidering the sales price. While this offer was under consideration, new problems with the sewer line were discovered; Seattle Short Sales recommended that the lender honor the purchase price but offer a $9,000 closing cost credit to the buyers so they would be able to make necessary repairs. On October 11, the lender indicated that they would approve the sale if the buyer would raise the purchase price to $359,000. Seattle Short Sales indicated to the lender that the buyer would walk from the deal if these repair costs were not covered, and reminded the lender that they would inherit these repair costs if the house went to foreclosure. On October 23, the lender’s negotiator indicated that she did not have the authority to approve such high closing costs, so would forward the offer directly to the investor for their decision.

On October 26, the lender issued an approval for the short sale, with 3% closing costs ($10,400) to cover the repair, and waiving the deficiency balance owing. Seattle Short Sales worked to have the closing date extended from November 24 so that buyers could get their financing finalized. The lender indicated that could not extend the approval and that they would, under no circumstances, postpone the scheduled foreclosure sale date of December 3. Seattle Short Sales continued to push them, and they eventually issued an extension for closing by December 1, 5pm.

Result:
The young homeowners were able to rid themselves of the emotional stress of trying to pay for a home that they could no longer afford by short selling their home. They received an $87,000 discount on money owed on their mortgage, and were cleared of any obligation to repay the deficiency balance - and able to start their new life in Texas without carrying debts from the past.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=75787

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/

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

GMAC Short Sale Case Study:

Property Location: Kirkland, WA - King County

Lender: GMAC

Hardship: “I bought this property in May of 2006, when the real estate market was booming and promising for investors like us. Since then we were renting it continuously. In the last few years the rent has decreased significantly to the point where we can no longer cover our monthly mortgage payments on the rental property. To make the matter worse, our renter has recently lost her job and stopped paying her rent a few months ago. She is moving out before the end of July.

“Our income has decreased due to the economic crisis and now we barely make enough to cover our daily expenses and pay the mortgage on the house where we live.

“We were forced to put the rental property on the market for sale and hoped to get an offer, which we finally did, after almost 2.5 months and several price drops. “The home is in good shape and we have a very serious buyer. Please help us sell the house and settle our debt.”

Loan Balance: $356,753

Sales Price: $290,000

Approved Net Proceeds: $254,679

Timeline:
July 29, 2010: The financials and short sale package were submitted by the homeowner and the complete short sale package was submitted by Seattle Short Sales to GMAC.
August 3, 2010: Seattle Short Sales resent the short sale package to GMAC.
August 5, 2010: GMAC informed Seattle Short Sales that file is already in foreclosure status, with Trustee Sale scheduled for October 1st, but ordered an interior BPO (broker’s worst-case price opinion).
August 13, 2010: GMAC advised that current purchase offer of $280k is too low, but would consider approving at $290k, advised Seattle Short Sales to counter current offer.
August 14, 2010: Buyer agreed to purchase price of $290k, Seattle Short Sales revised HUD and other paperwork accordingly.
August 19, 2010: GMAC approved short sale negotiated by Seattle Short Sales

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=68432

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/

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

GMAC Short Sale Case Study:

Property Location: Kent, WA - King County

Lender: GMAC

Hardship: “I am writing this letter in hopes to receive help from you. My family will be relocating due to a job change. Due to this relocation we are unable to own and make payments on our home. We have looked at all options available to us, including attempting a refinance in 2009 but the market value would not support a new loan. We are unable to rent the home, as we would receive a substantial negative cash flow and it would be nearly impossible to manage a rental from out-of-state.
“I am devastated by the idea that we will no longer be able to make our mortgage payments, as we have strived for years to be responsible customers.We have put thousands of dollars into our home from new flooring, paint, fixtures, etc. to make this condo a place we love to come home to each day. We had high hopes of starting a family here and fully intended to see our commitment through but it seems that circumstances did not work in our favor.”

Loan Balance: $173,835

Sales Price: $155,000

Approved Commissions: 5%

Approved Net Proceeds: $129,608

Timeline:
June 27, 2010: The financials and short sale package were submitted by the homeowner and the complete short sale package was submitted by Seattle Short Sales to the 1st lender (GMAC) and 2nd lender (Chase) the following day.
July 8, 2010: The homeowners were up-to-date on mortgage payments; GMAC confirmed that they do not have to be behind on payments to proceed with a short sale.
July 21, 2010: a buyer came in with an offer $10,000 higher than BPO (broker’s worst-case price opinion) and the offer was submitted to both 1st and 2nd lenders.
July 30, 2010: 2nd lender (Chase) assigned a negotiator to the deal.
August 7, 2010: Chase approved short sale, requesting payment of 10% of principal balance, and provided closing is by Sept. 15th.  
August 18, 2010: 1st lender (GMAC) approved short sale but allowing only 5% commissions rather than usual 6%.
August 24, 2010: approvals in place for the September 15th closing date negotiated by Seattle Short Sales

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=68001
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/