Case Studies

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

Nationstar/Suntrust Short Sale Case Study:

Property Location: Marysville, WA - Snohomish County

1st Lender: Nationstar

2nd Lender: Suntrust

Hardship:
“My position with the municipal government was eliminated in October 2010 due to a budget deficit. As a result, I have been experiencing severe financial difficulties. After analyzing my current financial situation carefully, I have concluded that it is no longer possible to comply with the terms of my mortgage agreement. I have no choice but to ask you for your help on avoiding the foreclosure of my home.

“I have lived in my home since June 2007 and have, until recently, been on time in making all of my mortgage payments. Due to my financial hardship and the declining economy I can no longer meet this obligation. Due to the dropping of home prices that are affecting the entire country, I currently owe more on my mortgage than my home is actually worth.

“In my search for a comparable job and salary, I have realized that I will need to complete my college degree in order just to make it to the interview process. I am four classes short of an AA and comparable jobs require a minimum of a BA degree. I was recruited to my past job on the basis of my talent and past work experience. I am finding that it is not likely that I will be successful in obtaining a similar job and salary without completing my college degree. With my living expenses, bills, college and medical expenses, and only receiving unemployment, I can no longer afford my home. I expect I will be moving in with friends or family during this uncertain time. I would like to sell my home to avoid foreclosure. I am working with a real estate agent and I believe that she will be able to help me sell my home for a comparable price.

“I hope to be allowed into a short sale program quickly, so I can sell the house before it goes into foreclosure. This will allow me to settle my financial obligation and have a chance to get back on my feet, without having to file for bankruptcy.

“I have always worked and have had excellent credit. I am so embarrassed that I am in this current situation and would like to avoid further financial difficulties. Please understand that financial hardships can occur and many times it’s not a choice."

1st Loan Balance: $297,600

2nd Loan Balance: $78,869

Sales Price: $235,950

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $202,026

2nd Loan Approved Net Proceeds: $4,464

Timeline:
On December 1, 2010, a signed offer to purchase the home for $216,000 was received. The file was sent to Seattle Short Sales, Inc., on December 9th, but it was missing some documents required by Suntrust, the second lender. Seattle Short Sales, Inc., submitted the short sale package to the first lender, Nationstar, on December 17. The missing documents were obtained, and the package was sent to the second lender on December 27.

The Seattle Short Sales, Inc., case manager confirmed receipt of the packages with both lenders at the end of December. Nationstar requested more documentation, and Suntrust indicated that they would have more information on progress in a week.

On January 5, Nationstar requested further documents, and on January 8 they ordered a BPO (Broker’s Price Opinion). On January 20, Suntrust indicated that they had assigned the file to a negotiator. On January 31, the Nationstar negotiator indicated that the seller must choose whether to process the transaction as a HAFA short sale or as a traditional short sale.

The Seattle Short Sales, Inc., case manager discussed with the Listing Agent the requirements and benefits of HAFA versus traditional short sales, and the Listing Agent brought this information to the seller. On February 16, the seller indicated that they wanted to do a HAFA short sale, and the necessary documents were filled out and submitted.

On February 19, the buyer rescinded the offer.

On February 25, the Nationstar negotiator indicated that the case had been reassigned, and that the seller would have to be reviewed for HAMP (loan modification) before being considered for HAFA. On March 11, Suntrust as second lender indicated that they also would have to screen the seller for HAFA once the first lender had reviewed the file.

Through the first half of March, the Seattle Short Sales, Inc., case manager contacted the lenders for updates regarding HAFA approval. On March 15, Nationstar indicated that the manager who was supposed to review the HAMP application was not in the office. The Seattle Short Sales, Inc. case manager requested that someone else review the documents, and resubmitted the application. Meanwhile, Suntrust indicated that the file was in the queue and that there were no new updates. On March 21, Nationstar requested further financial documents, which the Seattle Short Sales case manager requested from the Listing Agent.

On March 30, the Seattle Short Sales, Inc., case manager requested an update from Nationstar on the HAFA application. A week later, Nationstar replied that the file was still under review for HAMP.

On April 1, a new signed offer to purchase the home for $235,950 was received. On April 11, the seller received the HAMP documents directly from the lender, and the Seattle Short Sales, Inc., case manager prepared and submitted them.

On April 11, a new short sale package listing the new buyer was prepared and submitted to Suntrust, the second lender. Nationstar as first lender refused the original purchase offer. and on April 12 the Seattle Short Sales, Inc., case manager resubmitted the package, as well as all supporting documents, with the new, higher offer.

On April 14, Nationstar advised that the seller was declined for HAMP because she was receiving unemployment benefits, which meant that she would also be declined for HAFA.

Nationstar continued to push for the seller to do a temporary loan modification or forbearance plan. The Seattle Short Sales, Inc., case manager replied that the seller cannot afford a temporary modification, and needs to do a short sale, The lender replied that the seller could be considered for a traditional short sale, but not for HAFA.

On May 3, Nationstar countered the short sale offer, allowing 6% to the second lender and 3% closing costs. On May 5, the Seattle Short Sales, Inc., contacted the second lender to inform them of progress and request an update.

On May 25, Nationstar issued their approval of the short sale. Suntrust indicated that the file was still in review, and requested updated financial documents. On June 1, the Seattle Short Sales, Inc., case manager requested that Suntrust expedite the case, and resubmitted the documents. On June 6, the Suntrust negotiator replied that the documents still did not appear in their system. On June 8, the Seattle Short Sales, Inc., case manager determined that the documents were indeed in their system, and asked again that they expedite the file, as the first approval would expire on June 30.

On June 13, the Seattle Short Sales, Inc., case manager had the Listing Agent send updated financial documents to Suntrust. Suntrust indicated that they had forwarded the complete file to the investor for approval. On June 15, Suntrust issued their approval letter for the short sale, and on June 22 Nationstar issued a revised approval letter extending the closing date to July 14.

Result:
The homeowner was able to avoid both foreclosure and bankruptcy, and was approved to short sale her home. The deficiencies were waived on both mortgages - representing a total discount of $170,000 that she will never be required to pay back.

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=88390

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=88391

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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