Case Studies

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

Wells Fargo Short Sale Case Study:

Property Location: Snoqualmie, WA - King County

1st Lender: Wells Fargo

2nd Lender: Wells Fargo

Hardship:
“I am having difficulty keeping up with mortgage payments as a result of a number of factors, all of which were unforeseen when I purchased the home:

“When I purchased the home, in 2007, 25% of my annual income was based on annual compensation benefit provided by the company. In 2008, the company reduced the compensation to 5% as a result of the downturn in the economy.

“I now have a daughter in college, who requires higher than expected college expenses of $33,000 a year. We have taken student loans for her education, but the expense of what we must contribute is having a large negative impact on our family finances.

“My mother, who is now 80 years old, in in the process of moving to an assisted care community. I will need to supplement her monthly community expenses by $500 a month.

“In 2007, when we moved into our new home, we expected to reside here for many years to come. We have grown to love our neighborhood and taken immaculate care of our home. We have worked very diligently each month, budgeting for our expenses, and we have done the best we can to avoid the situation we are finally arriving at. Our credit cards and lines of credit are maximized, and the stress is having a terrible effect on our family.

“At this point, I see no other solution than to sell our home in order to settle our accounts.”

Sales Price: $470,000

1st Loan Balance: $650,800

1st Loan Arrears: $3,692

1st Deficiency Balance: $256,820

1st Settlement: Deficiency waived!

2nd Loan Balance: $122,025

2nd Loan Arrears: $0

2nd Deficiency Balance: $93,959

2nd Settlement: Deficiency waived!

Timeline:
On September 27, 2011, a signed offer to purchase the home for $470,000 was received. On September 29, a Seattle Short Sales, Inc., case manager was assigned to the file. On October 1, Wells Fargo indicated that the case was currently under review for HAFA eligibility. They mailed the HAFA documents to the homeowners on October 4. Through October and November, the Seattle Short Sales case manager uploaded documents as requested by Wells Fargo.

The HAFA request was denied because the homeowners did not return the completed documents by October 18, 14 days after they were sent out. The file would proceed as a traditional short sale, and a BPO (Brokers Price Opinion) was done on October 15.

On November 17, the Seattle Short Sales, Inc., case manager contacted Wells Fargo to inquire why the file was not moving forward, when all requested documents had been provided. The Wells Fargo contact reviewed the file, said it was complete, and assigned a new processor to the case. On November 22, the new processor requested more financial documents: the last 30 days pay stubs and bank statements. These were requested from the homeowner, and submitted to Wells Fargo on November 28.

On December 5, Wells Fargo assigned a negotiator to the case for the second loan, who would monitor progression of the first loan - still without a negotiator assigned - before issuing approval for the second. On December 14, Wells Fargo assigned a negotiator to the first loan, and confirmed that the case has been set up as an active short sale. The negotiator requested updated financial documents, which were sent that week. On December 29, the negotiator indicated that all documents were in order, and nothing further was needed at that time.

By early January, the file was being dealt with by a processor, and awaiting a new negotiator to be assigned. Meanwhile, the buyers walked away from the deal.

On January 23, a new signed offer to purchase the home for $470,000 was received. The Seattle Short Sales, Inc., case manager contacted Wells Fargo, urging them to assign a negotiator and expedite the file. The case manager continued to contact the processor with this request, on January 30, February 2, and February 3.

On February 15, the Seattle Short Sales, Inc., case manager faxed the new purchase offer and HUD to the second loan negotiator. On February 23, the first lender countered the offer with a purchase price of $470,000, and offering $28,066 to the second lender. The buyer accepted that purchase price that same day. The second negotiator communicated that he would work directly with the first negotiator, and would contact Seattle Short Sales, Inc., within a week.

On February 28, the first lender issued their approval letter for the short sale, and on March 2, the second lender issued their approval.

Result:
Even though the sale was not processed through HAFA, the lender waived the homeowners of ever having to repay the deficiency balances on either loan. The discount on the first loan was $256,820, and the discount on the second loan was $93,959. In total, the homeowners were relieved of $350,779 of debt that they could never have hoped to repay - and able to move forward in their lives.

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=101958

To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=101959

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 Wells Fargo/NCB short sale approved in this Wells Fargo/NCB Short Sale Case Study.

Wells Fargo/NCB Short Sale Case Study:

Property Location: Ferndale, WA - Whatcom County

1st Lender: Wells Fargo

2nd Lender: NCB Management

Hardship:
“Several factors have affected our financial decline. One being I am a commission salesman and the economy has decreased our sales significantly; therefore, my income has also decreased. My job is affected by the weather, and consequently we have had a very mild winter that has caused my sales to be down. Although we hope for an increase, there is no way to foretell any near future increase in sales or income.

“In the fall of last year, our son’s student loans all became due. We had been putting them on a forbearance hoping our financial situation would improve, but could no longer put them off so we consolidated them on a government loan option. Our total portion of his bill is $71,406 and therefore our monthly commitment is $413.00.

“We also have had to use our credit cards for living expenses because we valued making our mortgage payments on time. We can no longer continue in this situation. Somehow we must stop the financial ‘bleeding.’

“Finally, due to an unexpected health emergency, my wife has to return to Canada to help care for her elderly parents and this has created a total loss of her income for the foreseeable ffuture.Also, because she is self-employed we have not set aside the tax portion for last year and this year because we had no extra cash-flow to do so.

“In light of the above situation, we humbly request that you allow us to execute a short sale of our home as soon as possible to prevent mortgage foreclosure. I see no hope for us to retain this home and we are willing to release the deed in lieu of payment if that is a more acceptable option to you. With the amount of stress we are now under, this would certainly be the easiest solution for us.”

1st Loan Balance: $279,995

1st Loan Arrears: $1,902

2nd Loan Balance: $52,036

Sales Price: $305,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $222,080

2nd Loan Approved Net Proceeds: $10,450

Timeline:
On December 8, 2010, a signed offer to purchase the home for $250,000 was received. The short sale package was prepared by Seattle Short Sales, Inc.,, and submitted to both lenders on December 28. (The case had been initiated the previous July, after a purchase offer was received, but that buyer walked away from the deal before any approval letters were issued).

On January 25, 2010, a representative from BSI Financial contacted Seattle Short Sales, Inc., indicating that they are the servicer for MCM, which had purchased the note for the loan from Wells Fargo.

Seattle Short Sales, Inc., started to work with the BSI negotiator immediately on a series of counter-offers in order to get the sale approved. The BSI negotiator indicated that the seller’s credit would likely have to be eliminated and that MCM normally does not approve agent commissions above 5%.

Meanwhile, the second lender, US Bank, had assigned this debt to NCB Management. Seattle Short Sales, Inc., had offered them 10% of the balance owing ($5,200) but they insisted upon 30%. On January 28, the Seattle Short Sales, Inc,, case manager initiated negotiations with the second lender, in order to come up with a reasonable compromise.

On January 31, BSI as first lender issued an approval letter for the short sale. The Seattle Short Sales, Inc., case manager continued to work with the second lender, as well as approached the buyers’ agent to see if the buyers would come up with an additional $5,200, bringing the offer to second lender from 10% to 20%.

On February 3, the buyers indicated that they would agree to contributing the $5,200 in order to facilitate the deal. On February 8, the second lender issued their letter of approval for the short sale.

Result:
The homeowner, undergoing financial stress coming from numerous directions, was able to short sale the home that he could not afford to keep, saving over $100,000 on the balance owing on the two loans. He was waived of any obligation to pay back either of those deficiency balances, and so able to move ahead with his life and start over again.

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=79504

To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=79861

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

Wells Fargo / Bank of America Short Sale Case Study:

Property Location: Blaine, WA - Whatcom County

1st Lender: Wells Fargo

2nd Lender: Bank of America

Hardship:

“I am having difficulties making my monthly payments because of financial difficulties created by too much debt. This house rents for about $1,400 per month, and the total payments including first, second, HOA, taxes and insurance total about $2,300. I have other rental properties losing money and cannot continue to sustain these payments.

“I want to sell the home, avoid foreclosure and salvage my credit. I know that a foreclosure on my record will affect me for years to come. I would ask that you please assist us in avoiding this.

“Please work with my buyer, who has made a fair market offer. I do not have the funds to keep up with my house payments in order to jeep the subject property. I deeply appreciate your help and understanding in this matter.”

1st Loan Balance: $322,484

2nd Loan Balance: $56,584

Sales Price: $290,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $255,223

2nd Loan Approved Net Proceeds: $12,672

Timeline:
On March 28, 2010, the homeowner received a written offer to purchase the home for $295,000. On May 5th, Seattle Short Sales submitted the short sale package to the lenders. On May 22, the Wells Fargo negotiator indicated that they would need a higher offer in order to meet their minimum acceptable net proceeds of $253,174. No final agreement was reached.

On July 13, a written offer to purchase for $290,000 was received from a new buyer.

On August 19, the first lender requested additional documents, which Seattle Short Sales prepared and sent out, and on August 23 the lender indicated that they now had the file under review and would soon assign a negotiator. Seattle Short Sales worked on negotiations with both lenders to reach a value for the second lender minimum net proceeds that was permissible by the first and acceptable to the second. On September 21, the buyers threatened to walk from the deal, and Seattle Short Sales continued to pressure the lender to assign a negotiator in order to advance the case. Two days later a new negotiator on behalf of the lender presented a counter-offer with a minimum acceptable net proceeds of $250,763, indicating that this was a final offer.

Seattle Short Sales worked with all parties to come up with funds acceptable to all in order to move the deal forward. As negotiations with the first lender moved closer to finalizing, Seattle Short Sales continued to work with second lender to make sure that they also would approve the sale, reminding them that if the property went into foreclosure they would receive no proceeds at all. The second lender demanded $12,000 and the first lender was willing to authorize only $3,000.

On October 7th, the first lender issued an approval letter for short sale, allowing $3,540 for second lender. On October 20, the second lender reissued their approval of the short sale, dropping their minimum net proceeds to $5,700.

Result:
The homeowner was able to sell the home and rid himself of a mortgage that he could not afford, receiving a total of $111,000 discounted from the money owed on his two mortgages. He achieved his principal goal of avoiding foreclosure and the effects it would have on his credit rating. Additionally, the homeowner was relieved of having to pay back any of the deficiency balances owing on either mortgage, and so was able to move forward with a clean slate and no worries about debt collectors showing up years down the road.

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=71790

To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=77602

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 Wells Fargo short sale approved in this Wells Fargo Short Sale Case Study.

Wells Fargo Short Sale Case Study:

Property Location: Renton, WA - King County

1st Lender: Wells Fargo

2nd Lender: Wells Fargo

Hardship:
“At the time that I purchased my home in Renton, WA, in May of 2007, I was employed and business was good. My salary and the possibility of promotion and a raise made me sure that I could easily support my mortgage. Unfortunately, a downturn in the market caused my company to reduce its workload and cut hours.

“I struggled for several months to make my mortgage payment as is when the workload and hours was fut. But in October, 2009, I was laid off. Therefore I knew I would have to sell my home to protect my credit rating and possibly have enough cash left over for moving expenses. I am now working with a real estate agent and hoping to sell my home quickly.

“I really love my house, but I know that I cannot afford it. I am a single person, currently still unemployed and searching for a job, with no savings. My financial situation cannot sustain a home mortgage of nearly $4000 per month. I want to sell my home, avoid foreclosure, and salvage my credit. I know that a foreclosure on my record will affect me for years to come. I would ask that you please assist me in avoiding this.”

1st Loan Balance: $588,000

2nd Loan Balance: $112,000

Sales Price: $495,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $439,430

2nd Loan Approved Net Proceeds: $6,000

Timeline:
In April 2010, a purchase offer was received for $455,000, and the short sale process was initiated. The lender countered with a purchase price of $530,000. Seattle Short Sales countered back at $465,000, which the lender declined, and the property was relisted.

On July 26, the homeowner received a new signed purchase contract for $495,000. Previous financial documents were revised and updated and, on August 27, the short sale package was submitted to the lenders. The homeowner applied to process the short sale through HAFA, and a new interior appraisal of the property was ordered. Seattle Short Sales worked with the lender to make sure that the foreclosure sale date was postponed, in order to allow this new deal to move forward.

On November 10, Wells Fargo as second lender issued an approval letter for the proposed short sale. This information was forwarded to Wells Fargo’s negotiator for the first mortgage, who asked for updated financial documentation, promising to further postpone the foreclosure sale date and that they would issue approval soon.

On November 27, Seattle Short Sales received notice that the foreclosure sale had been cancelled so that the short sale could move ahead. Through early December, they worked to issue updated documentation, such as the hardship letter and financial information, in order to facilitate the approval, as well as to extend the closing date on the Purchase and Sale Agreement. On December 14, Well Fargo as first lender issued their approval letter for the short sale, with a closing date of January 24, 2011.

Result:
The homeowner was able to sell the home that she could no longer afford, after having been unexpectedly laid off from work. She paid off her two mortgages, with a $109,000 discount on the money owed on the first mortgage and a $106,000 discount on the second mortgage, and was able to avoid foreclosure and the effects that foreclosure would have on her credit report in the future. Additionally, by processing the short sale through HAFA, she was waived of any obligation to pay the deficiency balances - a total of $215,000 of debt forgiven - and she also received the $3,000 homeowner relocation credit.

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=77383

To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=75556

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 Wells Fargo / Chase short sale approved in this Wells Fargo / Chase Short Sale Case Study.

Wells Fargo / Chase Short Sale Case Study:

Property Location: Issaquah, WA - King County

1st Lender: Wells Fargo

2nd Lender: Chase

Hardship:
"In February, 2009, I was laid off from the job that I had had for 12 years. I was in a management position there, and able to meet all my financial obligations. My income has gone from over $200,000 a year to around $30,000 this past year. I now have more debt than income coming in and the value of my property has also dramatically decreased in its value.

"I have not yet missed a mortgage payment or been late, but I am in a situation where I am afraid of falling behind. I have done everything in my power to stay current with my payments but unfortunately I have exhausted most of my savings and have decided to sell my property. I am not loner able to meet my financial responsibility and make my current mortgage payments.

"Meanwhile I have been seeking employment for a sales management position and my unemployment is all I have coming in for income. I have worked for several companies temporarily but nothing that has lead to long term employment yet. This is why I feel that I need to sell my house at this time."

1st Loan Balance: $395,960

1st Loan Arrears: none

2nd Loan Balance: $97,745

2nd Loan Arrears: none

Sales Price: $335,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $289,619

2nd Loan Approved Net Proceeds: $3,000

Timeline:
On June 14, 2010, the homeowner moved from a loan-modification application to a short sale. On August 12, a written offer to purchase for $335,000 was received. By September 17, all of the documentation for short sale approval was complete and in the negotiators’ hands. On September 20, the investor requested a cash contribution of $6,300 in order to approve sale. On September 22, Seattle Short Sales presented a case to negotiate no cash contribution on behalf of homeowner and on October 4, 2010: Seattle Short Sales worked to bring sales commissions up to 6%.

On October 4, 2010, Wells Fargo as 1st lender approved the short sale with 6% commissions and no cash contribution by the seller. On October 6, Chase as 2nd lender issued their approval of the short sale.

Result:
The homeowner was able to relieve herself of two mortgages that she could no longer afford to make payments on by short-selling her home. In addition, she was able to avoid serious and long-term damage to her credit score by taking action with the short sale before becoming delinquent on her mortgage payments. She was also released from any obligation of paying the $106,000 deficiency balance owing on the first mortgage.

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=71779

To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=71780

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 Wells Fargo short sale approved in this Wells Fargo Short Sale Case Study.

Wells Fargo Short Sale Case Study:

Property Location: Arlington, WA - Snohomish County

1st Lender: Wells Fargo

2nd Lender: Wells Fargo

Hardship: “I lost my job in November 2009. I have been on unemployment since the second week of November. I am drawing $2000 a month. I have so many bills that I find myself in the red about $2000. There is no way I can make this mortgage payment of $1890 a month when I only receive $2000 a month.

“I tried to work with Wells Fargo, but they refused me any help in restructuring my payments. So now I am asking Wells Fargo to please consider working with me on a short sale to get this situation resolved.

“I fully intended to keep my home, but without their help it is totally impossible, so I am asking for my lenders help to sell my house and get my account settled.”

1st Loan Balance: $234,250

2nd Loan Balance: $41,363

Sales Price: $207,000.00

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $173,811

2nd Loan Approved Net Proceeds: $5,000

Timeline:
February 2, 2010: Homeowner receives written offer to purchase home for $207,000.
April 16, 2010: Short sale package submitted to lender, but still missing some documentation from homeowner.
May 15, 2010: Awaiting lender to assign a negotiator.
May 26, 2010: Lender requests further financial information.
June 30, 2010: Seattle Short Sales continues to push lender to assign a negotiator and to delay foreclosure sale, currently scheduled for July 23.
July 21, 2010: Lender delays foreclosure sale to September 20, and indicates they have all necessary documentation.
August 30, 2010: Wells Fargo as 1st lender issues short sale approval letter.
September 14, 2010: Seattle Short Sales continues to work with 2nd lender, who indicates that short sale has been approved even though they have not yet issued an approval letter.
September 16, 2010: Seattle Short Sales succeeds in requesting lender to postpone scheduled foreclosure sale by 60 more days as short sale approval is nearly finalized.
September 28, 2010: Wells Fargo as 2nd lender issues short sale approval letter, for sale closing by October 25, 2010.

Result:

The homeowner was in the final stages of foreclosure, but Seattle Short Sales twice managed to postpone the foreclosure sale in order to facilitate the pending short sale approvals. The owner was able to sell his home, paying off his two loans with a total of $96,000 discounted from the funds owed, and relieve himself of a mortgage he could no longer afford.

To download a copy of the 1st lender short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=71474

To download a copy of the 2nd lender short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=71475

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

Bank of America/Wells Fargo Short Sale Case Study:

Property Location: Lynnwood, WA - Snohomish County

1st Lender: Bank of America

2nd Lender: Wells Fargo

Hardship: “About seven months ago I lost my job as an electrician. I had originally planned on living here for a very long time. I fully intended to make everything work. It just didn’t work out.

"The house has been fully remodeled and does not need any repairs. I wish to sell my house and get my accounts settled.”

1st Loan Balance: $316,000

2nd Loan Balance: $38,475.18

Sales Price: $290,000

Approved Commissions: 5.22%

1st Loan Approved Net Proceeds: $261,024

2nd Loan Approved Net Proceeds: $3,854

Timeline:
May 5, 2010: Received written offer to purchase property for $280,000.
May 19, 2010: Short sale package submitted to lenders.
July 2, 2010: Lender counters purchase offer at $295,000, Seattle Short Sales reviews and counters at $290,000.
July 13, 2010: Lender counters at $289,700.
July 23, 2010: Wells Fargo requests further financial statements, which Seattle Short Sales submits the following day.
July 30, 2010: All parties are awaiting unemployment information from seller in order to proceed with file.
August 2, 2010: Seller provides missing information.
August 5, 2010: Bank of America seeks to reduce commissions, Seattle Short Sales works on negotiation.
August 11, 2010: Bank of America attempts to seek $2,500 cash payment and $5,000 promissory note.
August 14, 2010: Seattle Short Sales counters back: $290,000 purchase price, $2,500 promissory note and no cash payment.
August 18, 2010: Seattle Short Sales works to resolve differences in first and second lenders’ requirements, as first lender’s acceptance is about to expire.
August 19, 2010: Seattle Short Sales works to release homeowner of deficiency payment obligation in return for promissory note.
August 20, 2010: Wells Fargo requests more financial statements from seller.
September 9, 2010: First lender, Bank of America, issues short sale approval letter, for closing by November 1, 2010 - requiring $5,000 promissory note but no cash payment.
October 12, 2010: Second lender, Wells Fargo, issues short sale approval letter, for closing by October 29, 2010.

Result:

The homeowner, no longer able to afford his mortgage payments after losing his job, was able to short sale his home, receiving discounts of $55,000 off funds owed on his first loan and $36,000 off funds owed on his second loan - a total discount of $91,000.

To download a copy of the 1st lender short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=70767

To download a copy of the 2nd lender short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=72300

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 Wells Fargo short sale approved in this Wells Fargo Short Sale Case Study.

Wells Fargo Short Sale Case Study:

Property Location: Seattle, WA - King County

1st Lender: Wells Fargo (payout)

2nd Lender: Wells Fargo

Hardship: “I love this condo and it has always been my intention to keep it forever, however it has become apparent that I can no longer afford it.
“Due to the housing market collapse we are no longer able to get the same amount of rental income that we did two years ago and were forced to reduce our rents by 30% in order to keep tenants in the units. Right now, even with both units being rented we are still having to cover $2,130 out of pocket to cover the monthly debt service and condo dues on the uniets. Finally, as if that weren’t enough, I completed a graduate degree since purchasing the unit. My student loan payments have become effective and this is an additional $1,154 monthly expense that I didn’t have two years ago. This stretches our budget to the breaking point.
“I sincerely want to avoid becoming delinquent in my monthly payments and an eventual foreclosure on a condo that I can no longer afford. Please help me with a short sale of this unit so that I can avoid financial disaster.”

2nd Loan Balance: $131,117 plus 3rd loan (HELOC) $86,950

Sales Price: $260,000

Approved Commissions: 4%

2nd Loan Approved Net Proceeds: $27,138

Timeline:
March 5, 2010: Short sale package sent out to lender.
March 16, 2010: Seattle Short Sales ordered a BPO (broker’s price opinion).
March 23, 2010: Seattle Short Sales requested documents from lender; arranged for puchase contract extension until April 15.
April 3, 2010: Wells Fargo assigned a negotiator to the file, indicated it could take 30-45 days to complete review.
April 23, 2010: Wells Fargo closed the file claiming not to have received the documents. Seattle Short Sales provided confirmation that the documetns were indeed received and the file was reopened.
May 21, 2010: First mortgage will be a pay-off, Seattle Short Sales working on obtaining approval letters for second and third.
June 5, 2010: Lender indicated they have all documents in place and will assign a negotiator to the case.
June 16, 2010: Lender assigned new negotiator to the case, informed seller that they will need to work with recovery department on deficiency balance.
July 27, 2010: Seattle Short Sales advised seller about options regarding deficiency payment.
August 26, 2010: Second lender approved short sale, with commissions cut to 4%, for sale closing by Sept. 24.

Result:
The homeowner was approved to short sale a condo that she could no longer make payments on, and avoid foreclosure and resulting affects on credit report. The first loan was paid out in full, but the lender settled for $27,138, a discount (deficiency) of about $200,000 on the total amount owing on the second and third loans. The lender may attempt to recover this deficiency from the seller.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=69074

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/