Case Studies

Property Location: Federal Way, WA - King County

1st Lender: Bank of America

Hardship:
This Federal Way homeowner lost his job in July, 2010, as a result of his employer downsizing because of the poor economy. Although he listed his home for sale at a price that would allow him to pay out his mortgage in July, 2011, other similar condos in the area were listed for much lower prices. The only way he could hope to compete with them was by lowering the price, and that would would require a short sale.

1st Loan Balance and Arrears: $126,204

Sales Price: $83,000

1st Deficiency Balance: $53,104

1st Settlement: Deficiency waived!

Timeline:
The home had previously been listed for sale for $139,465.It was relisted as a short sale for $99,432.

In February, 2011, a signed offer to purchase the home for $80,000 was received. The Seattle Short Sales, Inc., case manager assembled all of the necessary financial documents into a short sale package and submitted that package to the lender.

On March 31, BofA assigned a processor to the file. The processor requested updated financial documents, which the Seattle Short Sales, Inc., case manager assembled and submitted. In May, BofA finally assigned a negotiator, who requested additional and updated financial information, which was provided.

Through the summer, the Seattle Short Sales, Inc., case manager continued to follow up with BofA for updates, as the buyers had hoped to be in the home by September and were becoming nervous. On August 12, BofA informed the case manager that the sellers would qualify for the FHA Preforeclosure Sale Program, which means that they would be waived of having to repay any deficiency balance, and would be eligible to receive a cash incentive of up to $1000 for closing the deal.

In September, BofA countered the purchase offer, requesting that the sales price be raised to $83,000 in order to meet their minimum net proceeds of $73,100.  The buyers agreed to the revised purchase price.

In October, Bof A issued their approval letter for the short sale, and the sale closed in November.

Result:
This Federal Way homeowner owed more on his Bank of America mortgage than the current value of his home. He was able to avoid foreclosure by pursuing a short sale on the home. He paid off his mortgage with a discount of $53,104, and he was waived of ever having to repay that deficiency balance.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=94795

Seattle Short Sales, Inc., has the most experienced and most successful real estate short sale specialists working with us. We close, on average, 15% of all short sales per month in King County. In the last 24 months, we have negotiated over 650 short sale approvals, and discounted over $65 million of mortgage debt for distressed homeowners.

A short sale can improve your credit, and help you to avoid foreclosure and get a fresh start. As part of our service, we offer unlimited attorney and CPA consultations.

If you are a homeowner, and would like to learn more about short selling your home, please go to: http://seattleshortsales.com/homeowners/

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

PHH/SCU Short Sale Case Study:

Property Location: Renton, WA - King County

1st Lender: PHH

2nd Lender: Sound Credit Union

Hardship:
“In 2004 we helped start a new business. However, very poor economic conditions in the past two years have had a very significant impact on us and, ultimately, our personal financial situation. I have been using our savings to manage debt caused by the lack of income from the company as anticipated. We have taken great pride in managing our financial obligations. However, my employment has been terminated as of July 15, 2011, due to lack of revenue required to support my position with the company. I am currently seeking new employment and am collecting Unemployment Compensation. However, this temporary income will not enable us to pay our mortgage obligations.

“In addition, my wife was diagnosed with breast cancer last year. She has undergone surgery, chemo and radiation treatments. She is unemployed also until she can get things under control. The cost of treatment has been extensive and payment has come from our dwindling savings.

“It has always been our intention to not only live in this house for the rest of our lives but to fulfill the contracted debt requirement. Unfortunately, we have been hit with two devastating situations. We have exhausted our savings and only have a very small amount of retirement savings to our names.

“We would like to list our house as a short sale, and try to get our feet back on the ground.”

Sales Price: $349,000

1st Loan Balance: $376,594

1st Deficiency Balance: $68,502

1st Settlement: Deficiency waived!

2nd Loan Balance: $125,000

2nd Deficiency Balance: $118,650

2nd Settlement: Lien Release

Timeline:
The home was listed for sale for $399,990 on August 31, 2011, and the file was sent to a Seattle Short Sales, Inc., case manager on September 6. On October 11, a signed offer to purchase the home for $335,000 was received.

The Seattle Short Sales, Inc., case manager assembled all necessary documents, and submitted the short sale packages to both lenders on October 24. Through early November, the case manager submitted additional financial documentation to both lenders as requested.

On November 10, the negotiator for the second lender, SCU, countered the current offer, stipulating that commissions be reduced from 6% to 5% and that the difference of $3,350 be applied to SCU, for a total minimum net proceeds of $6,350. They also indicated that they would not be forgiving the deficiency, so a promissory note for the balance remaining would have to be arranged.

The Seattle Short Sales, Inc., case manager informed the SCU negotiator that dropping the commission as proposed would not work in SCU’s favor, as the difference would automatically revert to the first lender - but that a 1% agent credit to SCU could be applied and written into the agreement. On November 21, SCU issued an approval letter for the short sale.

Meanwhile, the first lender was working on ordering a BPO (Broker’s Price Opinion) in order to evaluate the offer. On December 7, the first lender requested additional updated financial documents, which the Seattle Short Sales, Inc., case manager acquired and provided. On December 20, the first negotiator indicated that the file was complete and under review.

The Seattle Short Sales, Inc., case manager continued to follow up with the first lender for updates through January. On January, the negotiator countered with a purchase price of $350,000, 5% commissions, and rejecting costs for document preparation, utilities and attorney fees. The Seattle Short Sales, Inc., case manager contacted the listing agent to request that the buyers come up with their best and highest offer in order to try to make the deal go ahead.

The buyers countered, and the first lender countered back. On March 22, the buyers agreed to raise the purchase price to $349,000. On April 10, PHH issued an approval letter for the short sale, not waiving the $69,000 deficiency. The Seattle Short Sales, Inc., case manager forwarded the approval to SCU, requesting that the offer a full settlement. On April 13, SCU reissued their original approval letter, releasing the lien in exchange for the $6,350 proceeds.

On April 24, our lawyer wrote to PHH, the first lender, to insist that PHH waive the deficiency, or that the sellers would not proceed with the short sale. This companion blog post explains how the lawyer justified the demand that they waive the deficiency. On May 8, PHH agreed to waive the deficiency, and updated the short sale approval letter accordingly.

Result:
The lenders were able to short sale the home that their changed circumstances meant that they could no longer afford. They paid off their first mortgage with a $69,000 discount, and were waived of ever having to pay back that deficiency.

Although the deficiency on the second mortgage was not waived, by negotiating the short sale they were able to avoid foreclosure, and also to convert their secured mortgage note into unsecured debt, leaving them in a strong position to negotiate with their lender to get the debt down to 10 to 20% of the remaining unpaid principal balance.

To download a copy of the original first short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=103997

To download a copy of the revised first short sale approval letter, waiving the deficiency, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=105646

To download a copy of the second short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=96232

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 US Bank short sale approved in this US Bank Short Sale Case Study.

US Bank Short Sale Case Study:

Property Location: Bellevue, WA - King County

1st Lender: Chase

2nd Lender: US Bank

Hardship:
“I would like to get my accounts settled. Financially, I have not been able to sell my home since it was listed in October 2010 nor pay my first and second mortgages for four months.

“After my daughter moved out of my home for job opportunities in Seattle, I’ve been short of money. She lived with me prior to her move and helped pay monthly house bills in conjunction with monies for the company we ran together.

“My total income is $839 monthly from Social Security. This amount makes it impossible to provide for myself and pay monies due. I can’t even pay for household repairs needed: a slow leaking faucet underneath the kitchen sink, a dead fan in the kitchen, and a hole in the shed floor.”

Sales Price: $290,000

1st Loan Balance: $156,000

1st Settlement: Payoff

2nd Loan Balance: $220,117

2nd Loan Arrears: $4,779

2nd Deficiency Balance: $109,000

2nd Settlement: Deficiency waived!

Timeline:
On April 29, 2011, the file was brought to Seattle Short Sales, Inc., and the home was listed for sale for $385,950. The Seattle Short Sales, Inc., case manager began to assemble the short sale package, as well as an application to process the sale through HAFA, and requested missing documentation from the listing agent.

On June 11th, a signed offer to purchase the home for $300,000 was received. The Seattle Short Sales, Inc., case manager requested a BPO (Broker’s Price Opinion) and updated financial documents.

On July 8, Chase posted a Notice of Trustee Sale on the homeowner’s door. The Seattle Short Sales, Inc., case manager, requested necessary documents from the homeowner and listing agent in order to be able to submit a request to Chase to pay off the $150,000 owing on the first mortgage from forthcoming sale proceeds, and to stop the foreclosure process. On July 18, Chase agreed to the request and said that a payoff letter would be issued in the next 24 to 48 hours; the letter could then be submitted to the second letter to help with their approval process.

As the Seattle Short Sales, Inc., case manager worked with US Bank, the second lender, to facilitate the short sale approval, it became apparent that there were other liens on the property. The case manager urgently requested an updated title report, and started working on resolving those liens.

The Seattle Short Sales, Inc., case manager continued to follow up with Chase about issuing the payoff letter. Chase issued the payoff letter on August 8. The case manager continued to provide US Bank with updated financial documents and other supporting documents as requested. On September 9, US Bank indicated that all required documents were on file and the case was under review. The sale would proceed as a traditional short sale rather than a HAFA short sale.

US Bank assigned a negotiator to the case on September 26. The Seattle Short Sales, Inc., case manager continued following up with him requesting progress updates. On October 13, 17, and 18th the case manager requested that they expedite the file, as all documents had been received and it should be proceeding by now. On October 19, US Bank requested additional financial documentation. The Seattle Short Sales, Inc., case manager faxed all of the requested documentation to US Bank the following day.

The Seattle Short Sales, Inc., case manager continued to call US Bank for updates. On November 7, they indicated that they had received results of their BPO, but they would not share the value or whether the current purchase offer was within range of that value. Meanwhile, the payoff letter from Chase had expired, so the case manager requested an updated payoff letter.

On November 18, US Bank finally came back with a counter-offer, requesting net proceeds that were $19,841 higher than the net proceeds in the current offer. The Seattle Short Sales, Inc., case manager brought this information back to the sellers. The high request was because the seller’s ex-husband, who was still listed on the loan, had a high income. On November 30, Seattle Short Sales, Inc. countered back on behalf of the seller, raising the net proceeds by $15,000.

On December 15, US Bank issued their approval letter for the short sale, waiving the seller of having to repay the $97,000 deficiency. The Seattle Short Sales, Inc., case manager requested that Chase reissue their payoff letter again.

On January 3, the buyer rescinded the offer to purchase. The home was relisted at $315,000.

On January 6, an offer to purchase the home for $280,000 was received. The Seattle Short Sales, Inc., case manager submitted this new offer to US Bank. They responded, asking the buyer to match the original $300,000 offer. The buyer came back at $290,000.

On January 26, US Bank issued a letter approving the short sale with a sales price of $290,000, accepting net proceeds of $116,261, and waiving the seller of having to repay the $109,000 deficiency.

Result:
The homeowner was able to short sale her home and get out of paying two mortgages that she could not afford on her Social Security income. She repaid the first mortgage in full, received a $109,000 discount on her second mortgage, and was waived of ever having to repay that discount.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=97489

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 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/

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

Chase Short Sale Case Study:

Property Location: Sultan, WA - Snohomish County

1st Lender: Chase

2nd Lender: Chase

Hardship:
“Within the last 18 months I have relocated 254 miles away from my house for a job. As a result of this move, I now have to pay $2200 a month in rent, living expenses, as well as high gas prices, and have become unable to make payments, as agreed, on this mortgage. I am the only source of income for my husband and child.

“The economy is still making things difficult. I have tried, in good faith, to sell this house, but it remains on the market with no offers, as we owe more than we can sell it for. Foreclosures are all over the place, but I would like to avoid foreclosure if possible.

“Please work with this buyer so we can avoid this pending foreclosure.”

Sales Price: $109,000

1st Loan Balance: $220,000

1st Deficiency Balance: $124,000

1st Settlement: Deficiency waived!

2nd Loan Balance: $55,000

2nd Settlement: Payout

Timeline:
On June 21, 2011, the Seattle Short Sales, Inc., case manager received the file from the listing agent. She assembled all of the necessary documents, and submitted the file, classified as “File complete, waiting for buyer” on June 27. While waiting for a purchase offer, the homeowners were able to pay out their second mortgage in full, so only needed to obtain permission from the first lender to short sale the home.

On December 26, a signed offer to purchase the home for $106,000 was finally received. On December 28, the Seattle Short Sales, Inc., case manager faxed necessary documents to the listing agent. On January 3, 2012, the lender requested a 4506T form, and the Seattle Short Sales, Inc., case manager passed this request on to the listing agent. On January 5, the case manager received a copy of the purchase agreement and an updated title document.

On January 12 the file was submitted, classified “File complete with buyer.” On January 17, the Seattle Short Sales, Inc., case manager faxed the HUD and purchase agreement to the lender.

On February 1, Chase assigned a negotiator to the case. On February 6, Chase countered the offer, requesting that the purchase price be raised to $109,000. On February 9, the buyers agreed to the price increase. On February 13, the Seattle Short Sales, Inc., faxed all revised documents to the lender.

On February 20, Chase issued a letter approving the short sale.

Result:
The homeowners, struggling to pay a mortgage that was twice the current value of their home, were able to short sale their home. They paid their lender $96,000 - well under half of the $220,000 that they owed their lender - and they were waived of ever having to repay the $124,000 deficiency balance.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=102512

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

Chase Short Sale Case Study:

Property Location: Seattle, WA - King County

1st Lender: Chase

Hardship:
“This home was originally purchased in 2004 as a lease option-to-buy for a tenant. At that time, I put over $15,000 down towards the purchase, confident the property would be a good investment. Beginning in 2009, our financial situation drastically changed, first due to personal employment and then later (in 2010) due to trouble stemming from the tenant.

“Our personal financial situation changed dramatically in 2009 with the birth of our first baby. Since my wife was unable to work full-time, our household income was reduced by nearly $3000/month. In 2010 she took on part-time employment to help supplement our income; however, this has come to an end with the birth of our second child in July 2011, and she will be staying home for the next few years to raise our children.

“Throughout 2010 the tenant’s monthly rent payments for this property became inconsistent and eventually stopped in Janauary 2011, yet he remained on the property until February 2011. In an effort to uphold our financial responsibiity to the lender, full mortgage payments were made for both January and February 2011 even though no rent was collected for either month. After his departure, we considered trying to rent the home, but based on the current market, it was determined this would result in a net loss close to $600/month which we could not afford.

“In an effort to follow through with our financial obligations to Chase, in February 2011, we chose to refinance our other investment property to lower the mortgage payment, even though the home was assessed to be worth less that what we owed on it. (It qualified for a HARP re-fi, 105% LTV). After the re-fi, the property still results in a $350/month net loss, which is more manageable than the prior $700/month net loss we had been sustaining for nearly 4 years.

“Based on the conditions above, in February 2011 we came to the conclusion that selling this home was our only option. Prior to listing the home for sale in March 2011, numerous repairs were in order, due to tenant negligence, which cost us over $2000 and over 80 hours of personal time cleaning and repairing damage done to the property. After having it listed for over 4 months, we have received no offers and have continued to drop the price multiple times from the original listing price of $205,000 to the current listed price of $158,000, which is far less than the original purchase price of $260,000.

“We currently do not have the financial resources to cover the cost of the propety sale, and are at this time asking for your help to approve a short sale of our home. We can find no other answer to our circumstances that will allow us to avoid foreclosure. A foreclosure on our record will greatly affect our family for years to come and we are devastated by the thought.

“We are a modest family, extremely conservative, and conscientious in our spending. We request that you please help us in avoiding this.”

Sales Price: $125,000

1st Loan Balance: $242,166

1st Deficiency Balance: $134,260

1st Settlement: Deficiency waived!

Timeline:
On May 16, 2011, Seattle Short Sales, Inc., received the file from the listing agent. A case manager reviewed the file, and on the following day requested the missing documents which included financial documents, title documents, and a hardship letter. The last of these documents were provided two months later, on July 22. On July 25, the Seattle Short Sales, Inc., case manager sent the completed file back to the listing agent, classified “File Complete Waiting for Buyer.”

On September 11 a signed offer to purchase the home for $125,000 was received. On September 16, the Seattle Short Sales, Inc., case manager submitted the completed short sale package to Chase. On September 27, Chase ordered a BPO (Broker’s Price Opinion). On October 11, the Seattle Short Sales, Inc., case manager faxed updated financial documents to Chase. Through October, the case manager continued to contact Chase about the offer.

On October 26, Chase countered, accepting the $125,000 purchase price but requesting a $3,000 contribution from the seller. On October 28, Seattle Short Sales, Inc., countered with a $1,500 contribution from the seller.

On Novermber 4, the listing agent contacted Seattle Short Sales, Inc., to say that Chase had called to inform them that the file had been closed because they had not received the requested information. The Seattle Short Sales, Inc., case manager immediately contacted Chase to say that the counter offer response had been sent the previous week and that Chase had never called or left any messages. A Chase customer service rep responded, agreeing that the file had been closed by accident, and said that the file would be reassigned within 48 hours.

On Novermber 8, the Seattle Short Sales, Inc., case manager contacted Chase about the status of the file. They responded that a processor had been assigned to the file, but it would take another 10 days to have a negotiator assigned. On November 15, a new Chase negotiator called and requested some additional financial information. The Seattle Short Sales, Inc., requested the documents from the listing agent; these were returned and sent in to Chase on November 21.

Through the first half of December, the Seattle Short Sales, Inc. case manager continued to contact Chase for updates. On December 20, the Chase negotiator called to say that the investor had approved the offer. The approval letter was issued the following day.

Result:
The homeowners owed $242,166 on their mortgage. They were approved to short sale their home and pay off only $107,906 - less than half of the balance owing on the loan. They were waived of ever having to pay back the $134,260 loan discount, and able to relieve themselves of a financial obligation that they had no hope of ever being able to repay, and focus on their young family.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=97885

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

BECU Short Sale Case Study:

Property Location: Everett, WA - Snohomish County

1st Lender: BECU

Hardship:
“We would like to explain our current financial situation and request the approval of a short sale of our property.

“Due to our recent divorce, as well as my ex-husband’s job loss last year, we are unable to meet our financial obligations on our mortgage. Neither of us can afford to keep the property on our own, between car payments, credit card bills, student loans ($60,000 worth) and medical bills.

“We have lived in our home since May 2008 and have, until recently, been on time in making our mortgage payments. We had every intention of living here for many years. We fully intended to make everything work, unfortunately, it just didn’t work out. Due to our financial hardship and the declining economy we can no longer meet this obligation. We are actively pursuing a short sale because we want to get as much money for the property as possible, and to avoid foreclosure.

“We have enclosed documents for the past 2 months to illustrate our financial situation. We live paycheck to paycheck and have no savings. All of our money goes to bills and food with very little left over for any extras.

“We are embarrassed that we are in this current situation and would like to avoid further financial difficulties by continuing negative credit and mounting financial obligations. We want to short sale our home and settle our debts.”

Sales Price: $56,500

1st Loan Balance: $168,620

1st Deficiency Balance: $121,862

1st Settlement: Deficiency waived!

Timeline:
The homeowners contracted a real estate agent and listed their home for sale on March 8, 2011. The home was listed for sale for $79,700.

On March 17, the Listing Agent passed the file to a Seattle Short Sales, Inc., case manager. The case manager reviewed the file, and on March 18 requested that the Listing Agent provide some financial documents which were missing. These were provided on March 29. On April 4, the Seattle Short Sales, Inc., case manager submitted to the file as “complete, waiting for buyer” to BECU, the lender.

On July 29, a signed offer to purchase the home for $56,500 was received. On August 2, the Listing Agent sent the purchase offer, along with updated financial documents, to the Seattle Short Sales, Inc., case manager.

The lender, BECU, undertook a BPO (Broker’s Price Opinion) which, they indicated, came in higher than the purchase offer. On September 14, BECU indicated that the sellers would have to contribute $20,000 to close the sale. The sellers responded that they did not have the money to do that, and that they also could not afford any type of monthly payment. The BECU negotiator said that she would take that information into account, and be in touch the following week.

On September 29, BECU issued an approval letter for the short sale, for closing by November 15, with explicit wording waiving the sellers of having to repay the deficiency: “BECU will receive no less than $46,758.36 at closing. We are waiving the deficiency.”

Result:
The homeowners, a divorcing couple, were able to sell the home that neither of them could afford on their own. They paid off only 28% of their mortgage (paying their lender $46,758 of the total $168,620 owing) - a discount of  $121,862 - and were waived of ever having to repay this deficiency balance. Both homeowners were able to move forward with their new lives, knowing that their old house debt would never come back to haunt them.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=93640

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

Chase Short Sale Case Study:

Property Location: Everett, WA - Snohomish County

1st Lender: Chase

Hardship:
“When we purchased our home in 2007, we were excited to have our very first home, and though it needed a little work we were certain that it was a sound investment in our future. We quickly acquired credit for several projects to add value to the home. Immediately there were plumbing and electrical issues that the previous owner had glossed over and that required attention in order to live in the home comfortably.

“We added a large shed for storage and a privacy fence, both of which we built ourselves. In early 2008, we had a high-quality siding installed, not only to improve the appearance of our home but the energy efficiency as well. These improvements were very costly, but we were confident that we would recoup our costs because of the strong market values in our areas.

“In April 2008, the waiting period for refinance on our loan was up, and we were looking forward to the prospect of a refinance that would allow us to use the equity we had earned, to consolidate the extensive credit card debt that we had incurred over the last two years. Imagine our disappointment and distress when we realized that the value of our home had actually decreased.

“Somewhat frantic, we were relieved that Chase offered options for modifications of loans for homeowners in our situation. We completed our first modification in early 2008, but were disappointed in the results. We then hired a lawyer who specializes in loan modifications in April 2009, and for the last 19 months have been anxiously awaiting help. We recently received the offer for our new loan, and are still unable to meet the new terms.

“During this same time frame we have had several expensive health care issues. We do not have health insurance and in late 2008, my husband required emergency dental care that has resulted in over $13,000 of debt. In late 2009, he was also diagnosed with an untreatable genetic condition which causes extreme chronic back pain. The care and treatment of this condition has caused us to deplete our minimal savings. The monthly bills for his pain medications are in excess of $500. In addition to the added costs, his daily pain makes working difficult, and he has been forced to cut back his hours, decreasing his income.

“Over the past two years we have struggled to keep our heads financially above water. We are now unable to keep up with the mortgage and our medical debts as well as the maintenance of our home. We have struggled for so long, and do not wish to end in foreclosure. Please help us to sell the home and settle our accounts.”

Sales Price: $60,000

1st Loan Balance: $192,684

1st Loan Arrears: $7,465

1st Deficiency Balance: $152,374

1st Settlement: HAFA transaction - Deficiency waived!

Timeline:
The home was listed for sale on March 3, 2011. On May 19, the Listing Agent passed the file to a Seattle Short Sales, Inc., case manager. The case manager assembled all of the necessary financial and legal documents, and on June 7 sent a package to the Listing Agent, indicating “File Complete, Waiting for Buyer,” and also forwarded documents to Chase, the lender.

On July 26, Chase requested additional documents, including the listing agreement, hardship letter, and financial documents, as well as ordered the BPO (broker’s price opinion), which they indicated would be valid for 120 days. The Seattle Short Sales, Inc., case manager checked with the Listing Agent about the listing price. It had not been lowered since the home was listed, more than four months before, so she instructed the Listing Agent to lower the list price in order to try to obtain an offer.

On August 1, the Seattle Short Sales, Inc., obtained the forms for the sellers to apply for HAFA. These were completes, and submitted to the lender on August 9. On August 26, Chase approved the seller’s participation in HAFA. All parties awaited a buyer. On  August 31, the list price was lowered to $75,000.

On October 19, the Chase negotiator suggested lowering the price again, indicating that if the home did not sell by December 22, participation in HAFA would expire, and the file would have to be reassembled as a traditional short sale.

On October 31, a signed offer to purchase the home for $60,000 was received. On November 3,  the offer and HUD was faxed to the lender. On November 10, the Seattle Short Sales, Inc., case manager asked Chase for an update; they responded requesting that the documents be re-sent.

On November 18, the Seattle Short Sales, Inc., case manager followed up with Chase again. Chase confirmed that the offer had been received and was in a queue to be assigned to a negotiator, noted that the BPO had expired and they would have to order a new one, and indicated that the file would have to be reviewed again for HAFA.

On November 28, Chase assigned a negotiator to the case, and the Seattle Short Sales, Inc., case manager left a voicemail making contact with her. On December 2, Chase indicated that the case was with a document processor, and that a negotiator would be assigned shortly, and that the would review the offer within 20 business days. The latest BPO was completed, but Chase would not share the value.

The negotiator was assigned on December 8, and the Seattle Short Sales, Inc., case manager left a voicemail to make contact with him and to request an update. On December 15, the negotiator requested updated financial documents and an updated listing agreement, which the case manager requested from the Listing Agent. These documents were provided by the Seattle Short Sales, Inc., case manager on December 27.

On January 5, the new HAFA documents signed by the seller were received, and forwarded to Chase. On January 12, the Chase negotiator returned documents, indicating that closing must be before March 15, and reducing the escrow and attorney’s fees. The Seattle Short Sales, Inc., case manager revised and resubmitted the documents accordingly. On January 18, the Chase negotiator requested that two other fees be revised on the HUD, which the case manager changed and resubmitted that same day. The Chase negotiator submitted the file to the investor for a final decision.

On January 27, the negotiator indicated that the file would be approved, and on January 30 a final letter approving the short sale, and the seller’s participation in HAFA, was issued.

Result:
The homeowners were able to short sale the home that they could no longer afford to make payments on. They paid off $47,775 to the lender - out of a total balance owing on the loan of $200,149 - which is less than one quarter of the total funds owed. Since the short sale was processed as a HAFA transaction, they were waived of ever having to pay back the $152,374 discount, and were able to get a clean start in life.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=99747

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

ASC/Bank of America Short Sale Case Study:

Property Location: Kirkland, WA - King County

1st Lender: ASC

2nd Lender: Bank of America

Hardship:
“Due to the financial and economical crisis in 2007 in my line of work as an electrical sub-contractor, I have had great losses, and therefore was not able to sustain my previous income. Due to this disadvantage, I have been in great financial difficulty and unable to keep up with my payments.

“This crisis has been further increased by a health crisis of my wife and subsequent complications. Also my daughter had to have surgery which further created a hardship on me.

“Therefore, I would sincerely appreciate it if you would consider this short sale.”

Sales Price: $200,000

1st Loan Balance: $338,026

1st Loan Arrears: $26,867

1st Deficiency Balance: $189,687

1st Settlement: Deficiency waived!

2nd Loan Balance: $80,731

2nd Loan Arrears: $6,115

2nd Deficiency Balance: $78,846

2nd Settlement: Deficiency waived!

Timeline:
On April 13, 2011, a signed offer to purchase the home for $200,000 was received. The Listing Agent passed the file to a Seattle Short Sales, Inc., case manager on May 13.

On May 15, the Seattle Short Sales, Inc., case manager requested documents including financial and tax documents, hardship letter, and title report from the Listing Agent. Some of these documents were provided on June 7 but with errors, and on June 9 the case manager requested the corrected documents. The corrected documents were provided by the Listing Agent on June 13 and June 20. On June 21 the Seattle Short Sales, Inc., case manager submitted the completed short sales package to the first lender (ASC), with a request that the short sale proceed as a HAFA transaction, and initiated the case online with the second lender (Bank of America).

On June 30, ASC indicated that the file was complete and under review for HAFA qualification. On July 5, a negotiator was assigned by BofA, and on July 12, the ASC indicated that the request to process the sale through HAFA was denied, but that the file would proceed as a traditional short sale and no foreclosure sale was scheduled.

On July 18, the BofA negotiator requested additional financial documents, which the Seattle Short Sales, Inc., case manager provided on July 21. On July 26, ASC assigned a negotiator to the case. On August 9 they indicated that a different negotiator was to be assigned.

On August 10, ASC requested additional financial documents as well as some missing documents from the seller, and the Seattle Short Sales, Inc., case manager passed that request on to the Listing Agent that same day. On August 23, the seller provided some of the requested documents, but they were incomplete.

On September 1, Bof A as second lender countered the the settlement offer. The Seattle Short Sales, Inc., case manager requested an update from the first lender before responding to it. On September 9, ASC confirmed that the case was still moving forward and that no foreclosure sale was scheduled, and they were reviewing the file. On September 16, BofA requested additional financial documents, which the Seattle Short Sales, Inc., case manager uploaded that same day.

On September 16, ASC assigned a new processor to the case. On September 22, they requested additional updated financial documents, which were provided. On September 26, ASC provided a counter offer, accepting the $200,000 sales price but removing some of the closing costs and lowering commissions to 5%. On September 29, the Seattle Short Sales, Inc., case manager countered back, with commissions at 5.5%, retaining some of the closing costs, and extending the closing date to November 17.

On October 4, ASC countered back, accepting terms except for the commission, which they kept at 5%, saying that that was a requirement of the investor. The offer was countered back and forth twice more, and on November 2 ASC issued an approval letter for the short sale, waiving the deficiency balance.

Meanwhile, on October 20, BofA had assigned a new negotiator to the file and requested that the documents be uploaded again. The requested documents were uploaded, and on November 7 the Seattle Short Sales, Inc., case manager contacted the new negotiator about reviewing the uploaded documents. On November 21, the case manager contacted BofA again, requesting that they expedite the approval. The BofA negotiator indicated that they were still awaiting results of the appraisal.

On November 29, the Seattle Short Sales, Inc., case manager contacted BofA with an urgent request, explaining that they had been working on the file for two months, and that the first approval would expire in 17 days. BofA escalated the file to a specialist who would review the offer in the next 48 hours.

On December 12, BofA provided a counter offer, which the Seattle Short Sales, Inc., case manager accepted. On December 16, BofA issued an approval letter for the short sale. The Seattle Short Sales, Inc., case manager immediately contacted the first lender with a request to extend their approval. The approval was extended to close by December 30.

Result:
The seller was able to sell the home that he could no longer afford. He paid less than half of the balance owing on the first mortgage - a discount of $189,687 - and less than 10% of the balance owing on his second mortgage - a discount of $78,846.

The total discount he received on his mortgage payments was over $268,000 - and he was waived of ever having to pay back those deficiency balances!

To download a copy of the 1st short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=96150

To download a copy of the 2nd short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=97488

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 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/

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