Squeaky Wheels Don’t Always Get Grease
“I demand that you close this transaction right now. I am going to stay on hold until you get this short sale closed. If you do not help me right this instant, I am going to come to your office, and bang on your door, and sit in your lobby until the transaction closes.”
It happens. Buyers get frustrated. They want to close the deal and get the keys, and often the short sale lender doesn’t work fast enough to satisfy the buyer (or the seller, for that matter).
One of the delays that often occurs at the end of the short sale transaction relates to approval of the final HUD-1 or settlement statement. In a short sale transaction, most lenders require that the settlement statement be reviewed one more time—just a day or so prior to closing.
So, when you are ready to close, you (or escrow or the attorney) send over the settlement statement. And… then you wait (and wait and wait). Sometimes the lender final HUD approval (a thumbs up that comes via email) comes quickly, and other times it takes a day or two. The short sale lender is taking one final look at the transaction to make sure that what they approved on the short sale approval letter and what is on the settlement statement match.
Since most banks work on their own schedule (not the buyer’s or the seller’s), it’s important for the listing and selling agents to set expectations accordingly. Explain the closing process to the buyer and the seller so that they understand why something might take another day or why this short sale thing is not an exact science. Everyone wants the transaction to close and we all need to work together in order to get the job done. Nobody needs to threaten anyone. The squeaky wheel doesn’t always get the grease.