I am representing the buyer on a short-sale that requires the approval of a 1st and 2nd lender. That in itself isn't unusual. What is CRAZY is that the short-sale approval is stalled over a gap of $25.86 payable to the 2nd lender. You read that right, a mere $25.86. My rough calculation on the per-diem loss to the 1st lender is $55 PER DAY but they won't approve the additional $25.86 payment to the 2nd lender to get this transaction closed.
Both agents are willing to write a check for $25.86 or take $25.86 from our commission to get the approval matching between the lenders but, NO, we can't. The 1st lender won't authorize the additional $25.86 to the 2nd lender and further states that "payment from any other party can't show up on the HUD Settlement Statement". Of course, any payments outside of closing (not reflected on the HUD Settlement Statement) are considered lender fraud so now we start another 2 weeks of phone calls and faxing HUD statements to get the 2nd lender to accept $25.86 lower payoff.......which will cost the 1st lender $550 of additional losses.
With crazy decisions like this, is it any wonder the real estate market is struggling to stabilize?
Wendy Cutrufelli
Broker Associate
925.917.1135
The positions on this site are my own and don't necessarily represent Alain Pinel Realtors' positions, strategies or opinions.
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