Ok.. So I get an acceptance letter from Wachovia on Friday on a property that I'm shorting. In this acceptance letter it says...
*Wachovias acceptance of short sale proceeds is contingent upon there being no other pending escrow transaction involving the future transfer of the property listed above upon completion of the short sale. If such future transfer is contemplated or such escrow is pending, then this short sale demand shall be null and void.*
These banks are getting to be a PITA. Anyone get this condition from them? If so, Now what?
I noticed that, too. There are no time limits like the standard 30 day BS. From that wording, it looks like you could NEVER resell this property! I hope you like it!
You are correct. There is no time limit stated in the letter. Sometimes I miss the days of wholesaling properties. Back to back closings have their perks, but also can be a pain.
I interpreted it differently. It looks like they just don't want the short sale to close if there is a second closing already set up or "pending" for an end buyer, using a a back to back, simo or regular closing. In other words, they don't want to let you buy it if you already have it escrowed to sell to someone else. Once you close, you can then find a buyer or do what you will with it, with no time restrictions. My take.
Oh maybe Larry is right. Since it just says you can't have anything 'pending' you should still be able to resell. So you just have to make sure the A to B is complete? Don't you have to close the A to B first anyway?
Yes... These are designed to stop double closings not to stop resales. I would contact your title company and or your attorney to see if this is even enforceable.
If enforceable, you can still do the A to B and close the B to C with another title company. The keywords are "pending" and "contemplation". These are vague and open to intrpretation. If you close using separate title companies, the B to C title officer will never see the short sale approval letter.
Doing transactional funding will be a bit more difficult but talk to Will and Rich to see if they will work something out with you.
If there is enough of a spread, you can use hard money and close B to C using a different title company.
I hear what Larry and Scott have said and agree to a point with the exception of the following: The wording does stipulate "contemplating" which can be construed as anything (especially when title does transfer a few days there after, it is obvious it WAS in fact contemplated at the time.)
The wording is so loose and open ended and after speaking with Cory via phone on this matter and suggesting he start this thread, we were hoping to get all your insight as well as our own thoughts.
I certainly can fund the A to B with the bank's title and have Cory set up a second escrow at his own and then do the B to C. This should all be able to complete inside the 72 hour variety which I certainly can fund.
My concern and Cory's is the balance of the language and any future legal issues.
Any additional insight from you all?
Edited: 06/26/2010 at 10:03AM
Will Barnard, Barnard Enterprises, Inc. E-Mail: info@barnardenterprises.com Website:http://www.barnardenterprises.com info@barnardenterprises.com
Agree that the wording is vague. What I would is get the opinion of my attorney and determine what in fact the lender can should they choose to follow up.
Let's face it, if they wanted to stop you from transacting, they would be more succinct and include the ramifications. This, in my opinion, is a half-hearted attempt to discourage investors or to price them out of the double-close transactions.
I worked for WF and I know this is a servicer trying to appease their clients the noteholders! Again, if they really want to stop us from transacting, they would simply have a policy not to sell to entities, or keep the margins down, something to that effect. Secondarily, the lenders are tired of all the would-be investors and RE Agents, and uneducated buyers wasting their time by being unable to transact. For every short sale that closes, seven do not.
I posted a question above on the matter what Cory has disclosed. Did you ask him this on your phone call? Did you disclose he intends to make an immediate profit?
Oct 12 '09, 01:13 AM
