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Whitevine, Home Seller in Las Vegas, NV

How long does final HUD-1 Approval Take in the Short Sale?

Asked by Whitevine, Las Vegas, NV Thu Mar 8, 2012

I am currently in the process of going through a short sale (as the seller) and we have gotten approval for everything, except the final HUD-1 approval. Buyers signed docs last Friday, and Monday everything was submitted to the bank for final approval to finally close out. It is now Thursday (night) and we have yet to receive approval. My agent has been asking the bank and asked that they expedite the file. We have a deadline by this Friday (Marc 9) to close (we have already extended it before) and I am worried that we will not get approval in time. I thought the approval was usually quick in this last step in the process?

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9
Hopefully you already received the approval for the short sale in writing from your bank. Then as long as the final HUD matches the numbers on the approval from the bank EXACTLY then it usually takes 72 hours at most. I have giot signatures in an hour and longer when things didnt match. Have your negotiator check the numbers and start calling them every 30 minutes until they approve it.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Mar 17, 2012
It takes between 4 - 6 months (at least in my case), all depends on the skills of the agent from the bank who holds your loan
0 votes Thank Flag Link Sat Mar 17, 2012
Should update, we finally got approval. So able to close out today. Was looking over documents and their net was the same as the prelim. So assuming they are just swamped over there.
0 votes Thank Flag Link Fri Mar 9, 2012
I also forgot to mention that the bank is Wells Fargo. I found that even the buyer's lender has already sent the funds for the loan, but their lock on their rate has expired today (so we may need to redo loan docs again). We also had to send a new HUD-1 over as the one we sent over before expired yesterday.

Suzie, the escrow has the wire in the right account, have already verified that myself with the Title company.

Paul, they are waiving deficiency. I had to pay a cash contribution, which I have wired to them already and verified they got. As with HoA, everything was paid for up to that point. There was no liens and all the bills were paid for (even throughout the selling process)
0 votes Thank Flag Link Fri Mar 9, 2012
You might want to get escrow to check on the wire to transfer the money into the banks account. I have had a,few delays like this where the money wire was showing that it was in to the bank but it in the wrong account and or somehow they were not seeing it. Escrow should have the banks closing agents email and be right on top of the situation . Also make sure the approval did not go to an assistants email or someone else in the company. I have had that happen. It was there but in an escrow assistants email. Good Luck I know when it gets down to the 11th hour it gets intense.
ThanknYou
Suzie Marquardt
0 votes Thank Flag Link Fri Mar 9, 2012
Great question! It sounds as though your agent is working diligently and will get the job completed! You are so close, and some questions to ask is perhaps is "Is there an issue with something on the HUD-1?" Please update your post, I am very anxious to hear the outcome! This market is ever changing, and the rules are being made up as we go, because nobody has ever played this game!!
Raina Musser
raina.musser@gmail.com
Web Reference: http://vegashomesforu.com
0 votes Thank Flag Link Fri Mar 9, 2012
There are some factors that might be slowing the hud down- If you received short sale approval and signed a short sale approval letter, that letter had a specific net that the bank would accept and also a specific amount in closing costs that the bank is willing to pay- There should also be some language in regards to if the bank is providing a deficiency waiver or not. The other issue slowing the process down- approval on the HOA payoff- were you in an hoa- did you have the HOA fess paid up?
If all of this is settled then ultimately they should be approving the hud and allow you to close within 3 to 5 days.
Thanks
Paul May
0 votes Thank Flag Link Thu Mar 8, 2012
Hi Whitevine,

The final HUD-1 needs to be approved by the existing lender. It can take a little as one day and as long as three weeks (in my case). You should be receiving it any day and your agent is staying on top of the transaction as it seems.
Good Luck!!

Rena Levy
broker/Associate
Realty Executives of Nevada
cvegashomes@gmail.com
Web Reference: http://www.cvegashomes.com
0 votes Thank Flag Link Thu Mar 8, 2012
Hi Whitevine,

I don't think there is a usual timeframe anymore. Everyone is always pushing for a closing date and then having to extend because they wanted to get the earliest date they can get. There is also of hurry up and wait in a real estate transaction. Be patient, you are almost there. It sounds like your agent is really working hard and pushing for you.

Good Luck,
Christine
0 votes Thank Flag Link Thu Mar 8, 2012
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