Short Sale Blog

Here is the latest short sale news at Seattle Short Sales. We assist hundreds of Seattle area homeowners with short selling their home and avoiding foreclosure.

Homeowner Lost Hope on Getting Short Sale Approved - But We Didn’t!

Seattle Short Sales - Wednesday, June 06, 2012

This just in from one of our satisfied short sale clients, who had actually given up on being able to avoid foreclosure by US Bank on her Seattle home:

“My experience with Seattle Short Sales was great. My Case Manager was extremely helpful in explaining questions I had, and I felt like someone was holding my hand through the difficult process.
“I had met with my real estate attorney, who told me their firm would not take my case since the chances my bank would work with me were slim. However, Seattle Short Sales was able to help me by coming to a suitable agreement with the bank even if it meant resubmitting my file several times.
“I was finally approved for my short sale on the 4th round.
“I had given up, but Seattle Short Sales had not. I cannot thank them enough for helping me through this period of distress.”

Short sales are complicated deals, with many players having a stake in the outcome: the seller, the buyer, the lender (both the loan servicer and the actual investor), the buyer’s agent, the seller’s agent, and often a few attorneys too.

While many of our competitors will outright reject all but the easiest cases, telling the struggling homeowners that there is little hope of them to be able to negotiate a short sale with their lender, we will take on any case: all files, and with all lenders.

Since the beginning of 2010, we have negotiated over 700 short sale approvals. That is nearly one short sale approval letter every day! That case volume, and our policy of working with all lenders rather than cherry-picking only the easiest ones to deal with, means that our Case Managers are among the most experienced short sale negotiators you will find anywhere. We have seen it all - and we use that wealth of experience so that we can provide the individual attention and service that every homeowner considering a short sale  deserves.

In the case mentioned above, the homeowner, who was very financially responsible, was facing increased living expenses. Her home, currently valued at $110,000, was not worth enough to pay off the $251,000 she owed on her mortgage. Although she had not yet defaulted on the loan she realized that, with her increased living expenses, she soon would. She wanted to deal with this before it got any worse.

She met with an attorney, and he told her that she had little hope of getting a deal. He outright rejected her case. So she came to Seattle Short Sales, Inc.

Her case was definitely not an easy one. Her mortgage was with US Bank - one of the more difficult lenders to obtain short sale approvals from. Additionally, although she was facing increased living expenses, it was hard to know whether or not the lender would consider that to be “hardship” (as compared to loss of employment, or medical expenses). But we took the case.

Our Case Manager submitted the file to US Bank - three times! - and the short sale request was declined each time. The bank’s reason? They deemed her to have “no hardship.”

So our Case Manager met with both the buyers and sellers, and they decided to let the file sit for at least a month, while the Case Manager compiled revised and updated financial documents. Then the file was resubmitted for a fourth time, a new negotiator reviewed it, and it was approved!

The results for our seller?

  1. She had managed so far to stay current on her mortgage. She wanted to preserve her good credit rating by not defaulting on the loan, and to avoid foreclosure by short-selling the home. She achieved both.
  2. From the sales funds, she was able to pay off $96,000 of the $251,000 loan balance, and she signed a promissory note to pay her lender an additional $13,000. This means she paid a total of $109,000 on the $251,000 mortgage balance owing - a discount of $143,000!
  3. Perhaps best of all - her lender waived her of ever having to pay back that $143,000 deficiency balance! This means that she is now clear of debt, and free to start rebuilding her life.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=106507

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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