Shoestring to Millions

Mark’s Experience- His First Short- Part VII

Posted on: August 12, 2009

Short-selling isn’t easy. It takes patience, determination and organization. Lets take a look at how Mark does at his first go-around with the short sale process…

Mark is now starting to feel the pressure of running a business and working a full time job. As he finishes his day at work, he runs at home to retrieve his papers and heads to the local coffee shop. Over his cup of latte, Mark begins to look through all the paperwork he gathered from Sam. Mark reads through the piles of legal letters, notices and threats sent to Sam. As he shifts through Sam’s paperwork, he starts to compile a list of items he needs to execute a short sale package.

Mark first puts together his Authorization to Release. This  document allows a third-party (Mark) to speak on behalf of the borrower (Sam) with the lender. A hardship letter is the next item–in it Mark explains why Sam fell behind on his mortgage payments and why this home most be sold as short.  Additional documents needed: 2 years of tax returns, 2 months of pay stubs and 2 months of bank statements. Mark also pieces together a financial worksheet for Sam based on his bills, receipts and other expenses.

Once complete, Mark heads home and faxes his Authorization to Release (ATR) and to the 1800 fax number as listed on Sam’s mortgage statement.  Mark has read from his numerous books that it takes up to 72 hours before the ATR is received and uploaded into the lenders system. Mark sits by and waits patiently for three days to pass and upon the fourth day morning before heading out to work Mark makes his first call to the bank’s 800 number. As he sits on the bus, cell phone in one hand and the mortgage statement and authorization in the other; Mark is placed on hold and is indoctrinated into the short sale world of hell:

Bank: “Thank you for calling.”

Mark: “I sent in the ATR about 3 days ago now. I wanted to see if it has been received?”

Bank: “Sir, Can I have the  Account Number and the Borrower Name”

Mark: “Acct Number: 22465178 Smith”

Bank: “I do not see anything in the file sir. Can you let me know when you faxed it in?”

Mark: “I sent it  3 days ago. I have a confirmation”

Bank: “Sir unfortunately you will need to resend the document as we have not received anything”

Mark is beyond frustrated with the bank’s customer service. How is he supposed to help Sam if the bank is going to misplace his faxes? So, Mark re-faxes the ATR…and patiently waits ANOTHER 72 hours. Upon the passing of the 3rd day, Mark calls back into the bank .

Bank: “Thank you for calling..”

Mark: “I sent in the ATR about 3 days ago now. I wanted to see if it has been received?”

Bank: “Sir, Can I have the  Account Number and the Borrower Name”

Mark: “Acct Number: 22465178 Smith”

Bank: “I see that the Authorization was sent in”

Mark: “Great I wanted to find out about the status of this file. When is the expected sheriff sale date for this property”

Bank: “There is no foreclosure date scheduled as I see in the system”

Mark (feeling happy that he getting somewhere with the file): “I wanted to negotiate a short sale”

Bank: “You will need to send in a short sale package

Mark elated having his ATR accepted quickly puts his entire short sale package through the fax machine. Mark sends in the package and wishes to try to negotiate the short debt pay off with the lender

Bank: “Thank you for calling. All our reps are unavailable right now.”

Mark: “I sent in the short sale package. I wanted to see if it has been received?”

Bank: “Sir, Can I have the  Account Number and the Borrower Name”

Mark: “Acct Number: 22465178 Smith”

Bank: “I do not see anything in the file sir.”

Mark: “I sent it and I have a confirmation”

Bank: “Sir unfortunately you will need to resend the document as we have not received anything”

Mark frustrated goes back and resubmits the package again.  The next day he calls again.

Bank: “Thank you for calling. .”

Mark: “I sent in the short sale package twice. I wanted to see if it has been received?”

Bank: “Sir, Can I have the Account Number and the Borrower Name”

Mark: “Acct Number: 22465178 Smith”

Bank: “I do not see anything in the file sir. Can you let me know when you faxed it in?”

Mark: “I sent I have a confirmation”

Bank: “Sir unfortunately you will need to resend the document as we have not received anything”

Mark faxes the package in again and tries the next day and gets the same response that nothing has been received. This happens 5 more times, and by 6th fax attempt Mark overnight the package.

TIP: This has happened on actual shot sale negotiation files with WAMU and Bank of America.

Mark calls into the bank to see if they received his overnight delivery. Surprise Surprise no package had been received by the bank. Mark  feels dejected and infuriated that after weeks of trying the bank still has not even received his short sale package.

Will the bank ever receive Mark’s package? Will he get to negotiate his first short sale or order his first BPO before the property goes to sheriff sale? The clock is now ticking

MARKS NET WORTH as of August 9th, 2009:  $71,500

Equity in home: $55,000

Savings: $4,000

401K: $12,500

Written by Ankit Duggal

Investment Director: www.rernj.com

RER is a boutique real estate investment company based in Clifton, NJ

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