Topic:

Preliminary Title report attached

Robin authorizes Kathy to release escrow information

Lloyd sends the buyers' offer to Robin.

Robin confirms that he has sent offer to seller for signature

Lloyd clarifies that the contract says the listing is supposed to be put into a pending status.

Which title company do you want to use?

Robin says he will have listing put in a pending status

Caroline updates that she initiated new sale on 8/27 but has been asked for a current MLS printout, front view of the home, buyers' pre-approval, updated hardship letter, 2 recent pay stubs, updated financial worksheet, 2 recent bank statements, 09 tax filing.

Lloyd thanks Robin for his update of 8/31.

Robin confirms he has sent offer, deposit, pre-qualification letter, 2 bank statements, hardship letter and updated letter, copy of current MLS. Seller is working on filling out financial info sheets

Robin updating on contact between Caroline & Kathy re: buyer names and preparing a HUD-1

Update from Caroline. She uploaded offer and supporting documents on 9/1. BofA rejected documents because the contract shows conventional financing but HUD shows VA financing and the HUD needs to list all buyers and not include an "et. al." notation.

Update from Caroline. Supporting documents are being reviewed by BofA. When complete, the file is complete it will be turned over to a negotiator and the valuations stage will begin. BPO will be ordered.

Lloyd thanks Robin for his update of 9/14.

Update from Caroline. Need updated financial info and negotiator is asking for August pay stub.

Robin confirms that financial info and pay stub was faxed to Caroline.

Robin asks Caroline for updated time line.

Lloyd thanks Robin for sending a request for a time line to Caroline.

Update from Caroline. BofA says sellers qualify for a HAFA short sale. Sellers are being solicited for HAFA. Seller should have rec'd a package with HAFA info. Sellers will have to decide if they want to proceed with the current short sale or start over with a HAFA short sale.

Lloyd agrees with Caroline that going through HAFA will probably cause delays.

Robin acknowledges receipt of Lloyd's Email re: HAFA

Robin informs Caroline that buyers are asking about HAFA. Robin tells Caroline that foreclosure began on 7/19/10

Lloyd gives Robin the recording information for the Notice of Default.

Lloyd sends Robin information on HAFA short sales.

Lloyd informs Robin that the thought of delays by switching to HAFA is making the buyers nervous.

Robin acknowledges receipt of Lloyd's Email of 10/1 re: HAFA

Robin asks seller to let Caroline know how they want to proceed regarding the HAFA the short sale.

Requests an update from Robin on what sellers have decided regarding the offer of a HAFA short sale.

Robin references other Email of 10/6/2010 @ 13:30

Lloyd forwards a request for an update to Robin

Robin asks Caroline for an update.

Lloyd let's Robin know that the seller is giving us one week to get an approval from BofA.

Robin acknowledges Lloyd's Email of 10/12 @ 12:14 PM

Robin lets Caroline & Tim know that the buyer is giving one week to receive bank approval.

Robin & Lloyd discuss paying negotiator and miscellaneous fees. It includes an Email from Caroline dated 10/18 with a time stamp of 14:06 PM. BofA's preliminary short sale approval terms are included.

Buyer is excited for short sale approval. Lloyd will get buyer deposit to title and will order the home inspection.

Cynthia from Warren Real Estate has been asked to do a BPO.

Should we be worried about a BPO at this stage since the bank has already given us the terms of approval?

BPO only good for 90 days.

We accept terms of BofA approval.

Confirm pay of negotiator fee and apologizes for not notifying Caroline that everyone accepted the approval terms from BofA.

Sending referral fee agreement.

Lloyd informs Robin that the Notice of Trustee sale has hit the paper and is scheduled for 11/17.

Robin asks Caroline to touch base with the bank on the foreclosure sale scheduled for 11/17.

Status update & comments about BPO request.

Copy to Lloyd saying the Notice of Sale hit the paper.

Robin asking Caroline if we need to be concerned about the foreclosure sale.

Copies to Caroline & Kathy. It would be good if we can get a one or two week extension past BofA's deadline of 11/15 for closing the short sale.

Caroline to request a delay of the foreclosure sale set for November 17th.

Acknowledges Caroline will ask for a postponement of the foreclosure sale. It also asks the seller to sign the hardship letter and supply September and October bank statements and pay stubs.

Caroline needs items from seller by 10/29, has been successful getting postponements of Trustee sales.

Send copy of buyers' $165K appraisal.

Inform Caroline and Robin that buyers wish to stick with the $179K purchase price. Also lays out a time line which indicates that we cannot close by the scheduled foreclosure sale date of 11/17.

Tax questions from sellers

Robin acknowledges Lloyd's Email of 11/2 regarding tax questions

Lloyd advises Robin to have the sellers contact Kathy to learn more about tax forms Kathy sent to them.

BofA asks if 11/17 close is possible, Caroline submitted buyers' appraisal.

Short sale approval attached and says she is requesting an extension on foreclosure sale.

Referral agreement attached.

Robin acknowledges Lloyd's Email of 11/15 regarding postponement of the foreclosure sale to 12/17. Also, Nadia is waiting for an underwriter response to the buyer's loan package.

Robin asks Nadia to send him page 8 of the contract in .pdf so that he can use DocuSign to sign it.

Lloyd attaches page 8 of the contract.

Robin acknowledges getting page 8 from Lloyd.

Broker signature via DocuSign.

Caroline confirms she submitted copy of buyers' appraisal to BofA.

Listing broker signature sent to Nadia.

Listing broker signature sent to Nadia.

Caroline declined the DocuSign envelope with listing broker signature

Lloyd's response to BofA request for $7,530 note and suggests we propose a sale price of $172, 530 ($165,000 + $7,530).

Give Caroline phone number for BofA concierge.

Caroline is asking BofA why $7,530 is just now being requested

Caroline says concierge number is just the main short sale phone number

Acknowledge Caroline's 10:49, 1/30 Email regarding Caroline is trying to find out about investor response

BofA explains request for $7,530 note. Says investor sees available income for repayment of a portion of the deficiency.

If seller is unwilling to sign $7,530 note, then proceed with $172,530 proposal.

Robin confirmed that Kathy told him buyers' loan docs are in title. Also trying to figure out how to collect money for Caroline's fee.

Caroline says she will present Lloyd's scenario to BofA

Lloyd asks Caroline to hold off presenting his proposal to the bank.

Robin informs Caroline that Robin & Lloyd are splitting her fee. He also asks about getting a release of liability for seller if seller agrees to sign the $7,530 note.

Caroline will try to find out about release of liability

Kathy says she is missing some documents and bills.

Robin tells Kathy he doesn't think the seller ordered the NHD, pest report, septic report and home warranty. Robin also says any expenses the seller agreed to are subject to the bank paying for the items.

Kathy says BofA agreed to pay for the NHD.

Robin says he is pretty sure Lloyd ordered the NHD in response to Kathy's Email saying the bank authorized the NHD.

Robin sends Kathy his commission demand

Robin sends NHD report for Lloyd's signature

All parties have signed NHD

Robin sends Lloyd an NHD report signed by the sellers.

Requests that Caroline inform BofA that buyer loan docs are expiring on 12/17.

BofA says they are checking with FNMA for a response.

BofA still waiting for investor response.

Tells Caroline that Nadia will pay for a 10 day interest rate lock and will extend loan docs.

Request contact information for investor.

Write to Congressman Herger's office to see if they can assist in getting FNMA to act on the seller's request to be released from liability on the portion of the debt that they are not being asked to sign the note for.

Lloyd leaves for 10 days on a vacation that was planned for over a year.

BofA negotiator informs Caroline of new approval and wants to know if it can close today. Ref 1/18/11, 8:21

BofA Emails revised short sale approval.

Caroline sends revised BofA approval and says it needs to close ASAP because of the foreclosure.

Lloyd informs John that we have bank approval. Ref 1/18/11, 8:22

Bank terms are acceptable to buyer. Ref 1/18/11, 8:21

Informing Robin that Kathy says Wells Fargo must fund tomorrow. Ref 1/18/11, 8:20

Please pass correspondence to Fannie Mae. Ref 1/18/11, 8:20

Asks Robin to Email price change addendum directly to buyers & let him know I will be out of touch most of the day tomorrow. Ref 1/18/11, 8:20

Lloyd calls Robin for an update. Robin prepared a new addendum on 1/3/11 and Emailed it to the sellers. He sent them a text message and also tried to call them on 1/3/11. So far, he has been unable to make contact.

Lloyd calls the buyer. Explains that the listing agent has been unable to contact seller to sign a price change addendum to $165K. Also explains that BofA's approval has put us in a "Catch 22" situation. We can't close at $165K unless buyer and seller can both sign the price change addendum and revised escrow instructions in time to get Wells Fargo approval of the price change. Can't close at $179K without BofA approval. Also explain that funds have to arrive by tomorrow morning as Kathy has said it must close tomorrow or it's going to the foreclosure sale. Buyer says he just wants to close it and will pay $179K if that is the way it works out.

Request DocuSign signature. Ref 1/18/11, 8:19

Kathy received an addendum signed by buyers and sellers changing the price to $165K. Getting a new approval from BofA at $179K is not an option now. Ref 1/18/11, 8:19

Sends escrow instructions & asks for money. Ref 1/18/11, 8:19

Update letting her know all parties approved the $165 Price. Ref 1/18/11, 8:18

Call from Nadia saying funds will be wired first thing in the morning.

Thanks for pulling off another miracle.

Caroline forwards the rejection Email from BofA

Lisa from North State Title informs Caroline that BofA has not accepted the wired funds. She also sends Caroline the corrected documents.

Kathy requests BofA accept the wired funds and attaches a copy of the HUD-1 Settlement Statement.

Were we celebrating too soon? Ref: do_not_reply, 1/18 @ 8:17

Robin asks Lloyd to sign referral fee agreement

Robin asks Lloyd to sign referral fee agreement

Bank of America requests additional pay stubs 27 days into the transaction. It is now obvious to the buyers that we are not going to have BofA approval within 30 days.

Bank of America causes a two week delay when it notifies everyone that it is suspending the processing of the short sale application while it sends out a letter to the sellers inviting them to apply for a HAFA short sale. BofA does not send out the letter promptly. When the sellers finally receive the letter and call BofA for more details, they are told they don't qualify because they were not personally occupying the house. The fact that the sellers were not personally occupying the home was a fact that Bof A had known for months.

Buyers are getting fed up waiting for Bank of America to provide information to the seller necessary for them to make a decision on switching to the HAFA short sale process. The buyers give the sellers one week to have approval from Bank of America or they will pull out of the transaction.

We learn that Bank of America has asked Cynthia Warren to do an appraisal as part of the short sale. So, even though we received preliminary approval from Bank of America two days ago, we learn that their preliminary approval really means nothing since the bank is still trying to decide if the contract price of $179,000 is a fair price.

On about this date, we learn that the buyers' lender's appraisal has come in $14,000 lower than the sale price. As a means of keeping the keeping the contract together and moving the process forward without further delays, the buyers decide to proceed with the sale at the $179,000 contract price and not ask Bank of America for a price reduction.

22 Days after Bank of America gives us formal written approval of the short sale, the Bank indicates FNMA is changing the terms of the approval and is asking the seller to sign a $7,530 promissory note for part of the deficiency. California is a "one action state" meaning that if Bank of America forecloses on this loan, the seller will have no additional liability to Bank of America. The sellers could easily have backed out and let Bank of America foreclose thus relieving themselves of any further liability. Such an action would only have cost them about 10 additional points off of their credit score as compared to a short sale. Instead, the sellers agree to pay the additional $7,530 but ask that they be released from further liability.

It's now been over one month since the seller asked to be released from liability for the deficiency over $7,530 and we still have not heard a response from FNMA. A new foreclosure date of January 7th has been set and is fast approaching. This should have been a simple request since this transaction will net at least $20,000 more than what Bank of America or FNMA can reasonably expect to net if the property goes to sale (the most recent appraisal is $14,000 less than the purchase price and the seller is willing to sign a note for an additional $7,530).

Bank of America and FNMA finally respond to the sellers request of December 1 asking to be released from liability. The response is that they are approving the short sale at a price of $165,000, are not asking the seller to sign the note for $7,530, are not releasing the seller from liability, are not willing to extend the foreclosure sale past January 7th and are giving us a deadline of January 6th to close escrow and deliver their sale proceeds to them. Kathy from North State Title informs us this means we have to close escrow by January 5th. North State's company policy prohibits closing on the day of the deadline given by the short sale lender for delivering sale proceeds to them. This policy is the result of potential problems with wire transfer of funds not getting to the short sale lender by the deadline date. This creates panic because the change in the approval terms means that the buyers (now in Texas) and sellers (living in Redding) will have to sign a contract addendum and revised escrow instructions by January 4th so that the buyers' lender can approve the new terms and fund the loan in time to close on the 5th.

Real panic is setting in Tuesday morning as the sellers' agent has been unable to contact the sellers to get a contract addendum signed. We have to either get a new addendum and escrow instructions signed by the buyers and sellers or we have to get approval from Bank of America to close at the $179,000 price. All of this has to happen by early afternoon so that Wells Fargo can approve the final outcome and order funds for tomorrow. The buyers indicate they are willing to buy at the original $179,000 price if that's what it takes to close escrow.

In the end, the sellers' agent was able to get in touch with the sellers, everyone did sign the new addendum and escrow instructions and Wells Fargo was able to get the buyers' loan funds to North State Title in time to close on January 5th. On January 6th, Bank of America initially refused to accept North State Title Company's wire transfer of pay off funds.