1841 Soto Street, Seaside  MLS# 80849376

 

      

IMPORTANT NOTICE TO AGENTS:

FINALLY IN ESCROW WITH A CASH BUYER!

CLOSED SALE ON DECEMBER 18th, 2009 

Please scroll down to the December 8th, 2008 posting to receive the latest updates!

This is a Short Sale and all offers are subject to lender's final approval.  Must include CAR Form SSA with all offers. It is suggested that the date for Bank Approval be at least 60 days from acceptance.  Must also include buyer's pre-qual or pre-approval letter. 

Any reduction in total commission will be split evenly between listing and selling brokers. 

CLICK HERE for a Comparative Market Analysis prepared on June 24, 2008
CLICK HERE for California Association of REALTORS Disclosures
CLICK HERE for Local Area Disclosures
CLICK HERE for a copy of a Home Inspection Report
 

ROUND 1: Property came on the market on June 26, 2008 and by July the 7th received 13 offers.  The highest, cleanest offer was accepted at about 5pm on the 7th and all paperwork was submitted to the seller's lender the very next day.  On July the 22, we received an email from the buyer's agent that buyer is canceling the contract on the grounds that the garage was not accessible and felt that "someone is hiding something from him."  Actually, there's a big, green, scary monster hiding in the garage and the seller didn't want anybody to see it. This is the first time we have ever received notification that buyer was even interested in performing any kind of inspection.

ROUND 2: Back on the market on 7/22 and have now received 5 offers as of 7/29/2008.  The highest offer accepted on 7/28/2008.

ROUND 3: After 5 long months and no timely response from the Holder of the Second as of December the 1st, Buyers have decided to withdraw their offer and move on.  They have found another house to buy and it is not a Short Sale.

ROUND 4: Just received a call from the Buyer's agent and our third buyer has bailed after their final physical inspection.  The dwelling has too many "issues".

PROGRESS NOTES:

Seller's income has dropped drastically beginning in the winter of 2006.  By spring of 2008, he was struggling to keep up with the payments.  Seller received a Notice of Default on June 3, 2008.

I met with the seller on June 20th.  We discussed some of the options available to him during this difficult time. He had already decided against keeping the property.  He is also not in a position to sell the property at today's market value and bring cash to escrow to make up the difference.  He told me that he contacted the lender and they were not willing to attempt a work-out (reducing the rate or loan amount).  He then gave me permission to contact his lender to help find a solution and discuss whatever other avenues might be available. 

I advised him in writing to obtain legal, credit and tax advice from professionals before undertaking a short sale or any other avenue under his consideration.

In the meantime, he was willing to sell the property for its present value - which is less than the amount owed if the bank would approve the receipt of any proceeds in satisfaction of the entire debt.  If the bank would not approve a potential sale, then he would just give the property back to the lender. 

6/24/2008 Tuesday @ 1:00pm: Contacted the loan servicing company and was informed that I needed to fax the borrower's written permission for me to speak with them.

6/25/2008 Wednesday @ 6:01am: Faxed the signed authorization (written permission to contact his lender) to the Loss Mitigation Dept. Fax number on file.

6/26/2008 Thursday @ 11:00am: Spoke to Juanita in the Loss Mitigation Dept. and she is waiting to receive and process the authorization through another department in another state. Once she is in receipt, she would be able to post the authorization to her system and then be able to speak with me in reference to borrower's loan.

6/26/2008 Thursday @ 5:45pm: spoke to Kelly in the Loss Mitigation Dept. and she confirmed receipt of my authorization. I'm now in the system.  She transfered me to the Liquidation Dept.

6/26/2008 Thursday @ 6:00pm: spoke to Henry in the Liquidation Dept. Phone number now on file.  He was very courteous and informative.  He documented my call.  He explained the (3) options available through his department.  He also explained the process for a short sale, which begins once an offer has been ratified by the seller.  He is sending a Short Sale package. In the meantime, I'm collecting the necessary documents and information.  Since these plans require financial information, seller decides to pursue either of these options.

Options:

1. Offer a Work-Out Plan: Owner would need to qualify for a new loan program by submitting tax returns to support the new monthly payments based on a lower interest rate (at prevailing rates) or a reduced loan amount.  Based on a review of owner's tax returns for 2007, the determination was made that he would not be able to qualify (this is not rocket science!).

2. Offer the lender a Deed in Lieu of Foreclosure: The lender would treat this as a satisfaction of the debt.  The Deed in Lieu is a possibility but seller was advised to consult with an attorney. This plan would require seller's financial information. 

3. Offer the lender a Short Sale: They seem to be very receptive to this program.  The Liquidation Dept. gave the following timeline:

A. Submit via fax ratified purchase agreement along with seller's required documents including financial information. If approved, then:

B. Assign the file to a department negotiator.  Wait Time: approx. 5 business days. If approved, then:

C. Negotiator will obtain a property value by ordering BPO and/or appraisal. Wait Time: 6-8 days. If approved, then:

D. Negotiator will then bring entire package to investors for their final approval. Wait Time: 4-6 weeks.

6/27/2008 Friday @ 6:30pm: Seller explains that he has a second loan - he used 100% financing to purchase the property in February 2005.  That loan is with another company.  He does not have any recent statements.  With his permission, I go online to review the most current transaction history.  We will try to call the company on Saturday on their toll free number to see if anyone can offer help.  Otherwise we wait until Monday the 30th.

6/30/2008 Monday @ 7:00am: Contacted the holder of the second and faxed the signed permission authorization to them.  Need to wait 48 to 72 hours to be posted to their system.  They also seem to have the same documentation requirements as the first loan.

6/30/2008 Monday @ 10:00am: Escrow opened with Gerry Wiles @ Chicago Title Co. Escrow # 52502801-GW

7/01/2008 Tuesday @ 8:00am: Updated the file with seller's tax returns, bank statements, hardship letter and financial worksheet.

7/02/2008 Wednesday @ 6:00am: Contact made with holder of second's work-out dept. and will fax documentation along with signed purchase agreement no later than July 8th.  Negotiator will be assigned in 7 to 30 days.

7/03/2008 Thursday @ 2:00pm: Received Preliminary Title Report. To view or print: CLICK HERE (big file- long download time)

7/06/2008 Sunday @ 7:00pm: Completed the final preparations for the seller's necessary financial documentation. Everything is ready to be faxed to the first and second lenders once seller signs acceptance on one of the offers received.

7/07/2008 Monday @ 6:00am: Informed the lenders that offers will reviewed by seller today and one of the offers would be signed.  Lender of the first suggested I fax over the application, income documentation, listing agreement, etc now.  The purchase agreement can be faxed later.

7/07/2008 Monday @ 5:45pm: Met with the seller and the best/highest offer was accepted.  The agreement was then faxed to the holder of the first.  Their package is now complete.  Also faxed the complete package to the holder of the second.

7/08/2008 Tuesday @ 6:00am: Called and confirmed with both lenders that the faxed documents were transmitted successfully.  The first is waiting to process the purchase agreement and asked that I call back tomorrow for confirmation of its progress.  Both lenders stated that they have ordered BPOs, and that the files are being assigned to negotiators.  I'm being told this could take weeks.  The first seems to have it together but the second ... well, I now understand why this huge company is in so much financial trouble!  The second's work-out department is called HOPE.  I can see why.  They hope to be still in business.

7/09/2008 Wednesday @ 6:25am: Called the holder of the first and confirmed receipt of the buyer's purchase agreement, pre-qual letter and title company's settlement sheet. The file has been assigned to a negotiator and a BPO has been ordered.  I was told it could take up to 30 days to have this task completed.  Also was told that their department is taking up to 60 days for review and approval.  I was asked to call back in a few weeks for a progess report. 

SPECIAL NOTE: If the BPO comes back at a higher price than our accepted offer, we will have some obstacles to overcome!  Not sure who will be doing the BPO but if they use the same comparables as I did and as all the other 13 agents that wrote offers on this property, then we shouldn't have any problems.  We are hoping the BPO agent is real familiar with Seaside properties.

7/13/2008 Sunday @ 5:30pm: Received a call from an appraiser in the bay area.  He has been ordered by the bank to give an opinion of value on our Soto listing.  This is really good news.  He'll be down in Monterey on Tuesday and we are set to meet that morning.  I asked him what bank called him.  He said the only information he had was the address: Simi Valley in Southern California.  I know this is the holder of the second and they order a full-blown appraisal.

7/15/2008 Monday @ 1:00pm: Received a call from one of our local Realtors who was asked by an asset management company (holder of our first??) to perform an interior BPO.  Explained that I was meeting an appraiser on Tuesday morning at the property.  She will try to be there too.  Now we have a bonafide appraiser and an agent BPO for our short sale.  This is really good news so far for the progress of our short sale ... all within the first week of acceptance!!

7/18/2008 Thursday @ 1:15pm: Called the holder of the first and confirmed that they have assigned a negotiator and have received the BPO on the 16th.  It was performed on the 15th.  I really like the professionalism and courtesy from the first.  I wish I could say the same for the second.  But they did confirm receipt of the documents I faxed last week.  They both said to check back in about 10 days for a progress report.

7/23/2008 Wednesday @ 6:00am: BACK ON THE MARKET!  Received email notification from buyer's agent that cancellation instructions are being drawn.  Let's see how many offers we receive this time!

7/25/2008 Friday @ 6:00am: Called the holder of the first for a progress report.  Spoke to Frances and confirmed again receipt of BPO valuation and assignment of our paperwork to a negotiator.  I was told that I should receive a scheduled phone call from their department on or before August 5th.  

7/25/2008 Friday @ 8:05am: Called the holder of the second for a progress report.  Spoke to Tyson and he transfered me to their "short pay triage group".  Was informed by Maria that the appraisal was in and our offer was acceptable.  She couldn't disclose the appraised value but did say that if our offer was below the appraised value, our offer would be rejected.  Of course, this makes sense and this is really good news!  She stated that a negotiator will now be assigned to our file.  Upon her request, I also faxed a copy of the hardship letter (again). 

7/30/2008 Wednesday @ 7:00am: Have received and processed the cancellation of contract on our prior offer and acceptance of our new one.  Will contact the seller's banks later this morning and inform them of our recent developments.

8/5/2008 Tuesday @ 7:00am: Called the First for a status update.  Was informed that they have nothing to report and that their department is still waiting for the negotiator to post their response on our file.  Was told that their system showed that a phone call to me by their negotiator is to be made as an introduction and scheduled for on or before or even sometime after August 5th.  Gee, they sure have it together!  Was told that they have hundreds and hundreds of short pay applications and it may be weeks before an acceptance or response can be given. 

8/19/2008 Tuesday @ 6:00am: I call the holder of the First.  I'm very thankful for their toll free phone number ... I was on hold for the longest time. Finally, was told that they would postpone any foreclosure notice or sale until our short sale application has run its course.  Was told the Notice of Trustee Sale is scheduled for September 24th.  I was also told that they have assigned our file to another negotiator but would have them contact me as soon as possible.  They take down my email address and phone number so that the new negotiator could get in touch with me right away.  Have I heard this before?  If I ever find out that this mortgage company is going to be bailed out by our government, I'm going to write to my congressman!  

8/19/2008 Tuesday @ 12:30pm: GOOD NEWS!!!   Received a call from the "new" negotiator of the First.  She is really courteous and seems really professional.  We review and update a few items in her file.  She has two special addenda that she will email to me today that need signatures from the seller and buyer.  I email PDF attachments of everything she needs from me this afternoon.  I'm waiting for the buyer's signature on their "special" addendum.  Started this entire process on July 7 so that makes it about 6 weeks into the process ... we are moving along.  I'm thankful.

8/21/2008 Thursday @ 1:30pm: Have been in contact with the negotiator of the First by phone and email.  Her email address' domain name is from one of the largest banks in the country. Completed a few items she needed and she said it was going to the "audit" department tomorrow morning (8/22).  She said if everything goes well, we will have our letter of approval by Tuesday of next week.

8/22/2008 Friday @ 12:30pm: Spoke to the negotiator to make sure everything is in order.  She gave me a nice compliment telling me that she moved my file to the top as it was very complete.  She also reiterated that our letter of approval should be ready by early next week if there are no "hiccups".  She said she would be surprised if there were any.  I said (to myself, of course), "Yippie!!"

8/27/2008 Wednesday @ 8:45am: Received a call from Randy at CountryWide (the new assigned negotiator for the holder of the Second).  I decide to open the doors.  No need to protect the innocent or should I say, the guilty.  He needs me to fax all the documents that I faxed to their Loss Mitigation Department eight weeks ago.  Remember now, their department is called "HOPE".  I now see why.  They hope not to lose all the paperwork!  See my entry for 7/8/2008 Tuesday @ 6am.  No wonder CountryWide is in trouble.  I just love short sales.  I comply with his request.  As a matter of fact, I fax the documents 2 times for two days each.

8/29/2008 Friday @ 12:50pm: Received the Letter of Approval from the holder of the 1st.  CLICK HERE for a copy of this bad boy! I blacked-out the innocent parties (names and phone numbers).  Now it's time to focus on that holder of the second.  If everything goes according to the plan, we just might close escrow by the end of September.  Of this year.

9/2/2008 Tuesday @ 7:50am: Called the holder of the Second to confirm receipt of the documents I sent this past Wednesday and Thursday.  Spoke to Frances of the Short Sale Support Department and she did confirm it's in their system.  Also informed her that I just faxed a copy of the Letter of Approval from the First so that they can be completely aware of our progress.

9/8/2008 Monday @ 5:30am: Called the holder of the Second to confirm receipt of the Letter of Approval from the First.  Spoke to Karen of the Short Sale Support Department.  She was very courteous & professional.  She has a nice voice too. They have the Letter of Approval!!  Finally!  Also confirmed that Randy is the negotiator on this file.  I now have his email address.  Think I'll drop him a line.

9/15/2008 Tuesday @ 8:00am: Called the holder of the Second to ask for an update from the negotiator, Randy.  I explained to the short sale support person that we are waiting anxiously for a response from them as we are scheduled to close escrow on September 30th as per the approval letter from the First.  Was told that he would call me within the hour with an update.  I placed a bet with myself that he wouldn't call.  I won.  As a matter of fact, never did hear from him.

9/16/2008 Wednesday @ 4:55am: Emailed Liz at ASC (holder of the First) to inform her of CW's slowness.  She emailed me back to say that an extension could be granted upon request.  Looks as if I'll be asking for one by next week. 

9/26/2008 Friday @ 12:00pm: Emailed the holder of the First to request an extension and a note to inform them of the Second's lack of response.

9/29/2008 Monday @ 8:00am: Called the Second and spoke to the negotiator, Randy.  Was told they are waiting for a reply from their Mortgage Insurance department.  Whaaaat?? A mortgage insurance policy for a second on 100% financing??? Does that mean they are "covered" on their loss??  What gives??  They shouldn't even care if they even get a penny from this short sale!  They'll recover their loss from the insurance company ... or the taxpayers.  I told Randy that I loved this business because I learn something new everyday.  "I do too", he replied. 

9/29/2008 Monday @ 2:00pm: Received a call (the number is blocked by the way) from Lynn at ASC (holder of the First).  She is the closer for ASC.  They are ready to draw instructions and a demand statement to the title company.  I explained that she needed to contact Liz, our negotiator at ASC, to receive an update on our request for an extension as we have yet to receive an approval from the holder of the Second.  She will call me tomorrow with an update.

9/30/2008 Tuesday @ 5:00am: I fire off an email to Liz for an update on my previous email for the extension request.  Hope to hear from her today.  I think today is our 3 month anniversary!!

10/6/2008 Monday @ 7:25am: Received the revised Letter of Approval from the holder of the First granting the extension request to October 30, 2008.  Called the holder of the Second and actually try the automated response system.  The recording states that they will have an answer by the 20th and not to call back!  Immediately call again and this time I press "2" to speak with a representative from their short sale department and ask for Randy, the negotiator for this file.  He said that he would speak to his supervisor and will call me back.  Never does.

10/20/2008 Monday @ 5:30am: Call the holder of the Second and this time, I don't even bother with the automated system and press "2" for a live person.  The representative checks the notes and tells me that they are still waiting for a reply from the mortgage insurance company.  She tells me that she updated the notes and will email the negotiator for a response.  She asks that I call back later today.  I politely thank her for her time.

Please Note:  During all the times I call, I am always on my best behavior and use my nicest "telephone voice" and keep my sarcastic or should I say, cynical remarks to an extreme minimum.  However, I think of all kinds of things I wish I could say!

10/20/2008 Monday @ 6:15am: I email Liz, the negotiator of the First at ASC to let her know we are still waiting for CountryWide's response on our short sale application.

11/06/2008 Thursday @ 6:25am: These last two weeks have been a hair-pulling experience.  Afer numerous phone calls to the holder of the Second, it is always the same story: "we are still waiting for a reply from the MI company."  Earlier in the week, I emailed Liz (the negotiator for the First) requesting an extension.  I receive a new letter of approval with an extension for November 30th.  I also check to see if the First has postponed their Notice of Default process.  Records show zip so I know (I think?) the forclosure process is still in the postponement stage.  I am wondering why the First just doesn't file a Notice of Trustee Sale, foreclose on the property and wipe Countrywide off the face of the earth.  Then we wouldn't be waiting for a MI response.  Can you imagine what their investor's would say after realizing they don't even have a leg to stand on?  It really isn't that simple.  The property would be in limbo land for month's on end as the First's REO department gets it together.  I know from experience that the Short Sale department doesn't know what the REO department is doing on any given day.  The stories I could tell about that!

Please Note:  We just celebrated our 16th week (that's four months) anniversary!  Keep in mind that I received the Letter of Approval from the First six weeks into this short sale process.  The last ten weeks has been waiting for the Second to pull it together.  The sad thing about all this is that the Second will get a fraction of their loan amount if anything at all.

11/07/2008 Friday @ 3:00pm: FINALLY! The holder of the Second called me today with an answer from their MI department!  They'll approve the sale if they receive $16,000.  I immediately call the First to see if they'll pay this amount (I already know the answer).  The negotiator for the First laughs and tells me she'll call back after taking a look at the HUD statement and speaking with her supervisor.  She calls me back to tell me that they'll offer $2,000.  I call the Second and leave a message on his voice mail.  I'll call again first thing Monday morning.  I wonder how long this is going to take.

11/10/2008 Monday @ 9:30am: Left a message for Randy (negotiator for the Second at CW), asking if he will have an answer on the offer for a settlement of $2,000 instead of the $16,000.  Was told he would call me sometime today.

11/14/2008 Friday @ 9:00am: Spoke to the Second and the First's settlement offer of $2,000 has been declined.  I'm told they expect a minimum of $16,000.  I'm calling the First immediately.

11/17/2008 Monday @ 5:00am: By the afternoon of the 14th, the First agreed to offer $9,300 and this offer was conveyed immediately to the Second.  Unfortunately, I did not receive an answer by the close of the business day.  This morning, I emailed a rather lengthy message to my contact person at the First.  Some of the options one might think would exist, such as raising the purchase price or having the seller sign a personal note, etc. are not really options at all in light of current market conditions.  We are $6,700 short on this short sale!  After all these months, we are so close.  It is really up to the First as to where we go from here ... hope to have an answer from them today.

11/18/2008 Tuesday @ 2:00pm: The Second denied the First's offer for $9,300 and I was told that to reactivate their file, they are insisting on the $16,000.  I faxed a revised Estimated Closing Statement reflecting the payoff to them for $16,000 as I was told this would "reactivate" their short sale file.  I contacted the First and the negotiator agreed to submit their revised demand to her auditors for approval.  She informed me that she lowered the commission by 1% to help offset the difference of $6,700.  She said we should have an answer by Wednesday the 19th.  As it stands, we are now $4,550 short on this short sale!

11/19/2008 Wednesday @ 7:07am:  WE HAVE AN APPROVAL!  Just received the Letter of Approval from the First with agreement to the Second's demand for $16,000.  Will contact the title company and the Buyer's lender this morning.  Hope there is no hang-up with the Second's submission to title for their demand.

11/25/2008 Tuesday @ 10:00am: Have been trying to obtain an answer from CW as to our revised closing statement with their demand of $16,000.  As of today, they are in receipt of our statement but can't seem to find the First's Letter of Approval dated 11/19/2008 that I sent on the same date.  CW asked me to call back but in the meantime, they will "escalate" the file to management.  I was told they have over 70,000 short sale applications presently in their system.  They said it would take maybe another 30 days for the negotiator to review our revised statement.  Unbelievable!! 

12/3/2008 Wednesday @ 8:30am:  Placed another call to CW for a status update.  It doesn't seem as if they have even assigned a new negotiator to our file.  They are hoping someone will look at it by this coming Monday the 8th.  I'm not sure the Buyers will want to wait too much longer for this bank's approval.  They are very frustrated and are beginning to look at other properties for sale.  Short sale listings are not on their list!  We are now 5 months into this one.

12/8/2008 Monday @ 4:00pm: UNBELIEVABLE!!!  I actually receive a phone call from the assigned negotiator from CW.  She is so nice and helpful!  I now have her name, address, her direct phone number and better yet, her email address.  She explains that CW has been overloaded with a record number of short sales.  I was told they had over 70,000 short sale applications sitting in their department.  It has taken them months and months to install new systems and newly-trained team members to handle the volume.  This explains why I haven't really received the prompt service we needed in the first place.  She assures me that everything will operate much more smoothly from now on.  In the meantime, I need to submit the Seller's updated financial statements and documents as the ones she has are over 5 months old.  I'm not surprised.  I will need to start all over.

Unfortunately, the Buyers are no longer with us.  Even though we received a Letter of Approval from the Holder of the First way back on August  29th of this year, we have never received anything in writing from the Holder of the Second.  The Buyers have set their eyes on another property and their offer has been accepted.  If everything goes according to our schedule, they will be moving in at the end of the month.  Of course, the property is a regular bank-owned listing, which has its own pitfalls, but we are somewhat guaranteed a successful close ... unlike the experience they have had with a short sale. 

12/12/2008 Friday @ 8:00pm:  The decision was made to put the house back on the market.  Even though I know the bank's previous BPO came in months ago at over $200,000 and we were "approved" at the previous Buyer's offered price, my most recent analysis is suggesting a list price of $179,000.  I've taken into consideration the property's overall poor condition, floor area and other issues.  Besides the First and Second will be ordering another BPO or appraisal and any other offer is subject to their final approval.

Winter & Spring of 2009:  Received our third acceptable offer in January of the new year.  I start all over with updated financials, tax return for 2008, the works.  Brutal.

05/22/2009 Friday @ 4:00pm:  After waiting 5 long months in the new year, I receive a call from the Buyer's agent and the Buyer is withdrawing his offer.  The dwelling has too many 'issues" and he does not want to proceed.  Please Note: I now have Letters of Approval from both banks after waiting 10 long months.  Time to find another buyer real quick!  By the way, the culprits in this long, grueling process are Wells Fargo and Countrywide (now Bank of America).  Didn't these guys receive TARP funds?  One would think they would cut their losses quickly and forgo the foreclosure process.  If they really had it together months and months ago, they could have settled for a price of $185,000 or even $210,000 back in December of '08.  I wonder what the price will be if this property ends up as an REO!  Time will tell.  In the meantime, we should write to our congress members and inform them of this short sale fiasco. 

Interesting Note:  There is one bit of info I would like to mention.  During the negotiations between the 1st and 2nd for the 2nd's settlement request of $16,000 (see 11/18/08 & 11/19/08 notes), we never received the 2nd's Letter of Approval for their payoff demand.  Thus, the process had to start all over again by the end of winter in 2009.  When we finally received the Letter of Approval from the 2nd (Bank of America/Countrywide) in May of 2009, they settled for $8,000!!  If they had their stuff together back in December of 2008, they could have received twice that amount.  But then again, why the big hurry?  They have TARP and we have JACK.

06/19/2009: Received an all cash offer (our 4th, I think as I can't quite remember ... it's been so long) with all contingencies removed.  Can't beat that with a rubber hammer!  The lien holders order new BPOs as the previous ones are too old.  Duh.  This process takes weeks and weeks.

08/30/2009: Receive the letter of approval from Wells Fargo (the holder of the first).  They want to close by September 15th.  So do the buyers.  The only party that doesn't want to close or doesn't even realize that we would like to close is the holder of the second, Bank of America/Countrywide.

09/15/2009: Requested and granted an extension until 10/15 of this year.  Updated information from Bank of America: They are in Phase II with an assigned negotiator.  Moving right along ... hope there is not a Phase III negotiator.  Otherwise, we might close sometime in 2010.  The good news: I've been able to postpone the Trustee's Sale several times now.  The seller has lived in their home for a year and half without paying a cent to the banks.  Is this a great country or what?? 

10/02/2009 @ 3:00pm: Wells Fargo is so cool.  Really nice folks working in their short sale department.  They're so patient too.  Still waiting for Bank of America.  We have until the 15th.  Might as well request from Wells Fargo another extension now.

10/09/2009 @ 5:45am: Contacted Bank of America (2nd Lien Holder).  Our Phase II negotiator is Samantha and she was assigned to our file officially on September the 24th.  I'm given her full name, email address and direct phone number.  I already have this information as it was given to me on the 15th.  Doesn't do much good really.  She has not returned my call or email.  I'm told she has 30 business days to submit our file for the investor's review.  Hmmm ... wonder if we will be closing this year.

10/13/2009 @ 7:45am: Contacted Bank of America and their notes show that there have been no changes to my inquiry on the 9th.  Same old story.  Also contacted Wells Fargo (1st lien holder) via phone and email and I'm told that a supervisor will need to make the decision to grant another extension past October the 15th.  I was also told that there is no guarantee that they will grant this extension.  If they don't then they will re-activate the Trustee Sale Notice and off to the courthouse they go!

I've come this far and I'm not going to give up!  I'll email the negotiator for the 1st (again) asking for another extension (my second attempt as I didn't receive a reply earlier).  

10/13/2009 @ 8:30am:  Wow!!  Just received a reply email from the negotiator of the 1st (Wells Fargo). Here's a cut and paste of her reply: "I am no longer able to issue additional time for 2nd lien approval.  Closing will need to occur by expiration date, or a new review to take place once 2nd lien provides their decision. Thank you."  Not sure what that means exactly.  I'm afraid that once I do receive an approval from the 2nd, will the 1st just simply review and issue another letter immediately?  Or does it mean the entire process starts all over ... new BPO, updated financials, etc.  This is a scary and horrifying experience.  Halloween must be around the corner.

10/21/2009 @ 8:00am:  What a see-saw battle since Monday the 19th.  Received an email from the 2nd lien holder negotiator (Samantha from Bank of America).  They will settle for $10,000 and the Mortgage Insurance company, which appears to have more power than BofA, wants the seller to sign a promissary note for an additional $10,000.  Now ... Wells Fargo only wants to give the 2nd lien holder $5,000. The poor seller is struggling to buy groceries and is now expected to pay off a note for the next ten years.  I convey this info to the seller and buyer.  Seller (after conferring with his advisor) tells me to forget it.  He'll just let it go to foreclosure and the buyer is not willing to pay the additional $5,000.  Yikes!!  Can it be that I'll be taking it in the shorts on this short sale after all this time??

10/23/2009 @ 10:00am:  Just received an email from Samantha at BofA.  She said , "The good news for this file is that in speaking to the MI company rep this morning, I discovered that the MI coverage is no longer in force on this loan, so the prom note will no longer be an issue.  I will be able to move forward with submitting the file for approval under the investor guidelines, with a minimum $10k payoff on the HUD."  My how things just change ovenight ... I must  have called their bluff when I emailed her on the 21st to say they were nuts (I didn't really say that).  In any case, I fire off the revised HUD statement that the title company prepared before noon today to her as she requested.  By the way, I'm asking Wells Fargo to come up the additional $5,000 to meet BofA's request for settlement. I'm told by Wells that a new negotiator will need to be assigned to this file.  I tell them to take their time.  I'm in no hurry.
 

10/28/2009 @ 2:55pm: Wow!  Just received the letter of approval/closing instructions from the 2nd lien holder (BofA)!  All they want is $10,000 for a payoff from the 1st lien holder (Wells Fargo).  The seller is sure the heck not coming up with the cash, neither is the buyer and, of course neither am I .  They already reduced my commission.  So it's up to Wells Fargo.  I understand that our government is giving about $1,000 to lien holders for each successful close of a short sale.  We are only $4,000 short from putting this sale to its final resting place.  I email a copy of the 2nd's letter to Wells Fargo and a copy to the title company.

10/29/2009 @ 5:45am: Called the 1st lien holder for an update and review of their notes.  I'm told that the file is under review and that another negotiator has been assigned.  Sure hope they jump on this real soon.

Please Note: It has been a waiting game of "hurry up and wait" during the entire month of November.  Just waiting for the 1st lien holder, Wells Fargo to re-issue their letter of approval.  Of course, they had to re-order a new BPO to justify losing more money.  After numerous phone calls, I was told they received the BPO value on November the 25th.  At that point, the file was submitted to the auditors.  By the first week in December, Wells Fargo agreed to pay the 2nd lien holder (BofA) $9,300.  Remember that the 2nd wants $10,000 and already issued their approval letter for that amount.  I guess I should just contribute the difference from my commission and forget about trying to get the 2nd to take $700 less. 

12/07/2009 Monday @ 7:35pm:  Just received the letter of approval from the 1st lien holder (Wells Fargo)!  Can't quite believe it's finally happening after 18 long months.  I emailed a supervisor late last week asking if there was anything she could do to move this file along.  Wonder if that had anything to do with their speedy response?  Scheduled to close by the 15th of this month.  Hope I can pull it off.  Now it's up to the title company to have the revised HUD statement with my $700 adjustment be approved by the 1st lien holder.  Wonder how long that is going to take?? 

12/11/2009 Friday @ 5:00pm: The 1st lien holder has approved my "adjustment" and now the title company is battling it out with the bank's closing department over the line item entry on the final HUD statement.  The title company wants to enter it on line 403 but Wells Fargo's closing department wants it on line 505 and 506.  You should read the email exchange between these two.  Hope they work it out among themselves real soon.  By the way, the closing date has been extended to the 18th.

12/17/2009 Thursday @ 11:00am: Can't believe it!  Seller signed off on Tuesday and buyers today at 11am.  Is it really going to happen??  Can it be really true??  Purchase funds are already at title and we're on schedule for recording tomorrow.

12/18/2009 Friday @ 10:00am: After 18 long months, this rascal has finally SOLD.  Closed for $165,000.  Can't help to think that if Bank of America (2nd lien holder) had their act together, we could have sold this listing for $215,000 twelve months ago.  And you wonder why the banking industry is in so much trouble?  But as I mentioned before, the banks have TARP and we taxpayers have JACK.   Time to move on.

 Please contact James Frangella at 831.521.2099 or email