Case Studies

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

Wachovia Short Sale Case Study:

Property Location: Kirkland, WA - King County

1st Lender: Wachovia

Hardship:
“During the latter half of 2008 my business was in a gradual, steady decline. At the beginning of 2009 I called Wachovia to request a “loan modification” as my business was continuing to go south, only to have the Wachovia people tell me they were not yet ready to talk about modifications and that I would have to call back. I did call back in February, March, April and May, June and July. Wachovia was unable to assist. I was not late on my payments so why would they talk to me?

"My income over the last three years has been dramatically reduced. In 2007 I was grossing $36,000, and this year I will probably not make more than $13,000. The market has also declined steadily, so that my condo, which was worth approximately $225,000 back in August 2007, is now worth a lot less, probably between $110,000 and $165,000."

1st Loan Balance: $160,187

1st Loan Arrears: $2,013

Sales Price: $96,500

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $82,884

Timeline:
On July 8, the short sale package was submitted to the lender, and on July 20 the homeowner submitted the necessary forms to Wachovia to process the short sale through HAFA. On August 7 a signed purchase offer for $96,500 was received. Seattle Short Sales worked with agents, buyer, seller, and lender, to ensure that all documents to process the sale through HAFA were in order.

On September 1 the seller was approved through the HAFA program, and on September 17 Seattle Short Sales confirmed that the lender had all necessary documents to review the file for approval. The lender indicated that they were close to issuing the approval, and through the rest of September Seattle Short Sales continued to contact them about progress.

On September 29, the lender indicated that an approval letter was about to be issued, and Seattle Short Sales worked to ensure that this letter would still be valid for the November 29 closing date. On October 5, the lender issued their approval letter for the short sale, and on October 7 they issued an extension to make the approval letter valid to the end of November.

Result:
The homeowner was able to sell the condo which he could no longer to afford to make mortgage payments on, paying back just over half of the money owned on his mortgage, a discount of$79,000. Since the sale was processed through HAFA, he also received a $3,000 cash payment for relocation expenses, and was also waived of any future responsibility for the deficiency balance.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=71806

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 Wachovia short sale approved in this Wachovia Short Sale Case Study.

Wachovia Short Sale Case Study:

Property Location: Renton, WA - King County

1st Lender: Wachovia

Hardship: “In the past year I have been experiencing financial difficulties due to the loss of hours from my job. Wiith the economy going downhill, it seems that it will not get better any time soon. This has made it hard for me to continue making the original payments.

“After having my current financial situation carefully analyzed, I have concluded that it is no longer possible for me to comply with the original terms of the mortgage agreement. I have no choice but to ask you for your help in avoiding the foreclosure of my family’s home.

“Due to the dropping home prices that have affected the entire country in the last year, I currently owe more on my mortgage than my home is actually worth.

“Please consider allowing me into your short sale program so that we can lower the price and sell the house quickly before it goes into foreclosure. This will allow me to settle my financial obligation to you and have a chance to get back on my feet, without having to file for bankruptcy. Please understand that financial hardships can occur to people, and many times it is not a choice. I deeply appreciate your help in this matter.”

1st Loan Balance: $245,030

Sales Price: $219,500

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $190,062

Timeline:
August 27, 2010: Written offer to purchase received for $200,000. Homeowner choses to work through HAFA short sale program.
September 3, 2010: Short sale package submitted to lender.
September 15, 2010: Wachovia lists detailed requirements for resubmission of some paperwork.
September 29, 2010: Wachovia stands hard in not accepting any net proceeds under $190,100, which would require minimum sales price of $219,500, and issues approval letter accordingly - for closing November 28, 2010.
October 8, 2010: Seattle Short Sales works with all parties to reconcile lender’s high BPO (Broker’s Price Opinion) with seller’s offer.
October 26, 2010: New buyers agree to sales price of $219,500.

Result:
In less than one month from the time of submission, the homeowner received approval from the lender to short sale his home, allowing him to pay off his loan with $55,000 discounted from the total owed, and to relieve himself of a mortgage he could no longer afford and avoid bankruptcy. He was not required to make any cash payments or sign a promissory note, and relieved of any obligation to pay back the deficiency.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=71719

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/