San Jose Short Sale Agent: Silicon Valley Foreclosure Prevention Specialists

Another short sale approval came in today.    Another young family can now move forward and use the $3,000 check to help them relocate.  This was a HAFA short sale and another $6,000 from the proceeds were given to the second lien holder to help settle their claim.  After submitting the offer, it took less than 45 days to get the final approval.   This approval again, contradicts the rumors floating around out there that HAFA automatically causes delays in short sales.   HAFA deals with deadlines and was designed to speed up the process.

It was good for the bank, the seller and the buyer.   The house may not have sold for the amount borrowed, but we received a fair market value offer that was sufficient to pay monies to all parties involved to get them all to settle.   A happy day for all.  A good day for all.
Wells Fargo Approval

It is quite common for homeowners doing short sales to be requested by the buyers to extend their closing dates.  As the listing agent is the only party in direct contact with the lenders who provide the approval letters, it is up to us to get the extension.  Most of the time, the request to extend the closing comes from the buyers, not the sellers.   And said requests for extensions often have to do something with their loans.

In fact, I have two buyers who requested extensions on their closing dates this week because they were working out issues with their lenders.  One was changing the type of loan he was getting to qualify for better rates and the other was having difficulty trying to schedule  an appraisal their lender sent out.  Both would request no more than one to two weeks to work out their details and one has removed all of his contingencies, so there is no concern he will back out of this deal without first putting his deposit at risk.

Yes, it is understandable that investors want to limit the time it takes to close short sale deals.  But it certainly can be viewed as an over-reaction to systemically deny extensions on all requests, as Wells Fargo has just recently announced to all of its vendors. The problem with these types of systemic announcements is that their front-line employees will start taking hard-line black and white positions rather than take prudent measures to insure mutually beneficial outcomes which can sometimes be a grey position.

If the funding is in place and the approval was for 30 days to close, but due to some glitch, it will now take 35 days to close escrow, will they deny the extension request?  The obvious and prudent response would be to say no, but we will surely encounter wholesale denials because the front-line will not be given the discretionary authority to make these decisions.

An advantages of being a Certified Distressed Property Expert (CDPE) is the connections and networking opportunity this certification and my successful experience  affords me.   One of those opportunities was the preferred partner opportunity with Wachovia Mortgages.  I now have direct access to a local Short Sale Manager who can expedite the process for me.

Wachovia is one of the smarter lenders which understands that, generally, a short sale is a money saving opportunity for them  when compared to when the homeowner is forced into foreclosure or bankruptcy.  They also understand that one of the biggest reasons why typical short sales only close at 23% rate (Campbell Communications Survey, February 2009) is that the process takes too long and even if there is a good offer in hand, the long delay often causes the buyers to back out or simply lose interest and move on to another property.

Wachovia has committed to reaching out to successful short sale agents in a given area and working with them to expedite the process so good buyers don’t walk away from a deal because of the long delay associated with short sales.   Remember, Wachovia isn’t necessarily doing this completely out of sense of compassion, they are doing this because their acturaries have detertmined  expedited short sales will net them more money.  They are setting the new standard in efficiency: 45 days or less is their goal to close escrow from receiving the offer.

If you have attempted a loan modification with Wachovia but were not successful, or have received a Notice of Default or simply do not have other options or solutions, please feel free to contact me.  I can give you a no-obligation consultation as to whether a Wachovia Expedited Short Sale may be an option available to you and your family.