Approvals that fell through

Of all the short sales that you received approval on, whether it was an A-B to B-C, or normal transaction, how many did you not close as a result of the bank after you got the approval letter?

Meaning you received the approval letter, you are driving to the closing table, and the bank screwed something?

Same question goes for the homeowner. How many times did you receive an approval letter and then the homeowner balked?

I'm just doing some data research. If you want to you can provide a total number or a percentage is fine.

Thanks for the help.

Edited: 06/26/2010 at 11:23AM

Justin S., Wheelhouse Properties
E-Mail: wheelhouseproperties@gmail.com
Telephone: 4806780446
Website: http://www.wheelhouseproperties.com
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Caleb Whitney

Real Estate Investor · Glendale, Arizona

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Jan 28 '10, 12:27 AM

Justin,

Did this resently happen to you? I've closed 2 this month with no issues. Sorry I don't have a large enogh sample size to matter.

Edited: 06/26/2010 at 11:24AM

Justin S.

Rehabber · Chandler, Arizona

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Jan 28 '10, 01:13 AM

No, it did not happen. But I was thinking of crazy strategy and wanted to know my level of risk of a deal falling through.

Edited: 06/26/2010 at 11:24AM

Justin S., Wheelhouse Properties
E-Mail: wheelhouseproperties@gmail.com
Telephone: 4806780446
Website: http://www.wheelhouseproperties.com
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Scott Hubbard

Rehabber · Tucson, Arizona

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Jan 28 '10, 10:44 AM

Although I do not have actual numbers I can say for sure they are very low.

Less than 5% for both.

I had one less then 3 days from the scheduled close go to sheriff's sale. This was due to the lender not communicating with the trustee.

I have had a homeowner balk because the lender would not waive a deficiency.

Other than that, I have lost a few due to the buyer not performing and the lender foreclosed.

A few others where the title was clouded or a lien popped up just before close.

Edited: 06/26/2010 at 11:24AM by Scott Hubbard

Caleb Whitney

Real Estate Investor · Glendale, Arizona

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Jan 28 '10, 10:49 AM

I was told by the owner of Old School Title that if anyone is telling you that they are getting anywhere near 70% and above that they are lying.

Edited: 06/26/2010 at 11:24AM

Justin S.

Rehabber · Chandler, Arizona

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Jan 28 '10, 11:01 AM

I was told by the owner of Old School Title that if anyone is telling you that they are getting anywhere near 70% and above that they are lying.

Caleb

Scott is referring to deals that fell through after approval, not his acceptance rate of approval.

Edited: 06/26/2010 at 11:24AM

Justin S., Wheelhouse Properties
E-Mail: wheelhouseproperties@gmail.com
Telephone: 4806780446
Website: http://www.wheelhouseproperties.com
Realtor, Re-modeler, Cash Buyer

Ken Hughes

Real Estate Investor · melbourne, Florida

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Jan 28 '10, 11:32 AM

Only issue we have had is B-C lenders appraisel coming in below the A-B approval letter therefore nixing the deal. The approval came from Wacovia and by the time C's lender nixed the deal all of Wachovia's files were switched to WF and WF required the process to start all over again.

When we first started we agreed to the investors price only to have them come back and tell us they will not sell to investors and decline to issue the approvals. That happened on our first two short sale efforts.

Other than that it has been smooth sailing after getting the approvals. No issues at the closing tables.

Edited: 06/26/2010 at 11:24AM

H Mann

Real Estate Investor · Bay Area, California

215 posts
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Jan 28 '10, 05:28 PM

^ So your first two short sales, the lender said "we won't sell this to an investor"? Then you never had that problem again?

Edited: 06/26/2010 at 11:24AM

James Ward

Real Estate Investor · Ocala, Florida

748 posts
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Jan 28 '10, 08:12 PM

I agree with Scott, the number that fall due to the Short Sale Lender is almost none. I can not think of any where this happened.

But, that was a great question!

Edited: 06/26/2010 at 11:24AM

Ken Hughes

Real Estate Investor · melbourne, Florida

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Jan 28 '10, 08:55 PM

Originally posted by H Mann

^ So your first two short sales, the lender said "we won't sell this to an investor"? Then you never had that problem again?

That is correct

Edited: 06/26/2010 at 11:24AM