Steve Wilde, Attorney at Law
What is a Short Sale?
My Law firm has limited our practice exclusively to negotiated and facilitated short sales for the past 6 years. I have written and taught 5 short sale courses for the NC Bar Association. I have taught approx. 100 workshops and CE classes to agent in NC and SC on short sales. My law firm worked closely with Janet Thoren and the NCREC for several years developing the proper way to handle certain issues involving short sales such as multiple offers. One of my attorney's, Sam Iden, and myself were broughtin by the NC Bar and the NCREC as short sale experts to serve on the Forms Committee that re-drafted the NC Short Sale Addendum. I taught short sale to all of the attorneys at the NCREC. I give you this background in order to show that I have been involved in these issues for a number of years and am not just making stuff up.
More from Steve Wilde
Paragraph 6(a). The Short Sale Addendum is the controlling document in the short sale. The NC Short Sale Addendum states in paragraph 6(a) that the listing agent must present all offer to the Seller. 6(a) goes on to state that the NCREC requires that the Lienholder be INFORMED of all offers and contracts of sale on the Property received after a request for a Short Sale has been submitted to the Lienholder. "Informed" does mean that the Seller must send the offers to the Lienholders, but merely to inform the bank in writing all the other offers. The reason for the requirement to "inform" is to protect the Listing Agent from any allegations of a "flopping" scenario. Flopping was discussed in the 2011 -2012 Manditory Update on page 25.
Additionally, the requirement to informed Lienholder of the other offers does not start until an offer is submitted to the Lienholder for consideration. Until an offer has been submitted to the bank/servicer for short sale consideration, there is absolutely no duty to inform the bank of anything because a Seller cannot be forced to do a short sale. Lastly, the Seller gets to choose which offer is submitted to the Lienholder. There is nothing in the Short Sale Addendum taking this right from the Seller.
Once the Seller chooses which offer to submit to the bank/servicer, we will put the short sale package together and send it to the lienholders. My opening letter to both bank/servicers will inform them in writing of all other offers that we know of on the property. We will include the name of the Buyer and the price.
Paragraph 6(c) states that "offers from other buyers may be accepted by the Seller and become sales contract". In other words, the Seller may sigh other offers if he/she wishes. There is no language anywhere in the Short Sale Addendum or in any regulation or rule from the NCREC saying that the Seller "must" or is required to sign any other offers. Paragraph 6(c) merely gives the Seller the right to sign as many offer as he/she wants and choose the one that is submitted to the bank/servicer for consideration. Additionally, it allows the Seller to terminate a previous contract and substitute another offer if he/she chooses.
The reason behind this is that the Seller and the Lienholder are losing money. This gives them the right to consider a higher offer and, thus, mitigate their loss. Bank/Servicers will not choose. The bank/servicer all require the Seller to choose which offer is considered by the bank. If you sent more than one offer to NYBC they would decline to move forward on any offer until the Seller chose the offer to be considered. In fact, NYCB is very particular regarding the short sale package. They will not only require the Seller to choose which offer they are to review for short sale consideration, but they are one of the only servicers that require the short sale package to be submitted via mail.
I hope this helps clarify some of the issues that you raised. (This was a response to an email I sent him)
Very truly yours,
Steve Wilde, Attorney at Law
A Short Sale is quite simply a process of asking a bank to accept less of the balance due them at the time of the closing. The negotiation is between the seller and the bank. In order to learn as much as I can about the process I completed the National Association of Realtors Short Sale certification program. In addition I have completed two Short Sale state approved courses. From what I have been reading my real estate license enables me to be qualified to negotiate short sales for a seller with a bank. I have been in and out of the real estate industry for over 25 years and have 10 years of mortgage experience and probably could do a fairly decent job obtaining a short sale agreement for my seller, but am I the best man for the job, probably not. I have worked with Steve Wilde and have completed two short sales.
Steve and I completed two Short Sales
In 2015 I completed my first short sale for a seller and in 2016 I completed my 2nd short sale. There is no substitute for experience. The bank plays games that drag out the process to the extent that I actually had 5 offers at different times and lost 4 of them when the buyers ran out of patience and walked. Since then I have been using a plan that attacks the banks and speeds up the process to less than a month. I recently submitted a signed offer to a bank for a home that had been shown by 40 other realtors.
From Steve Wilde's website
April 30, 2014
TIME TO APPROVAL: What To Expect From Certain Banks And Servicers
The normal short sale with my office usually takes between 45 and 90 days to obtain an approval. The bank/servicer usually gives the party a 30-day window to close after approval. Some banks/servicers traditionally take longer and some take less time.
Additionally, there are 8 steps to a successful short sale and we complete each step every time we handle a short sale. I feel this is the fastest and surest way to get through the approval process. I say this because I am going to give timelines that we experience. If certain steps are not completed then the time to completion is longer and the success rate substantially lower. Our approval rate is 90% or better.
We have completed well over 400 short sales. The following is an updated list of the primary banks and servicers that we work with on a regular basis and the “time to approval” we are experiencing on a non-FHA short sale. [FHA short sales are taking longer than a conventional Fannie Mae/Freddie Mac short sale with the same bank/servicer.
BOA: 90+ days to complete. (They will try to close the file at any opportunity.)
BB&T, Chase, Citi, Navy Federal CU, PNC, SunTrust, Wells Fargo : 45 – 90 days to complete.
Fifth Third, First Citizens, SECU: 30 – 45 days to complete.
US Bank: 120 – 180 days to complete.
1st Bank: 30 – 60 days to complete.
Bayview/M&T, Caliber: 30 – 90 days to complete.
Cartus, PHH, NationStar: 120 -180: days to complete.
Greentree, Ocwen, SLS, SPS, Quicken: 45 – 90 days to complete
Truliant: 30 – 45 days to complete.
*It could take at least 45 days longer if the servicer puts property on Auction.com or HubZu.com
Wilde Law Firm, PLLC, 45 Wall Street, Suite 105, Asheville, NC 28801
828-254-6061 (office), ShortSales@WildeLawFirm.com