Please note that Platinum Group Services currently does not work with the following lenders:
Soverign, First Horizon (aka MetLife and First Tennessee), Navy Federal Credit Union, Acacia, Bogman.
PGS does not work on transactions in which three lien holders are shorted.
- Most lenders will pay customary closing costs in a short sale including real estate commissions. The allowable commissions paid by the lender can vary, typically from 5-6% based on various criteria: Investor guidelines, if Agents are from the same office, the relation of the Agent to other parties in the transaction, lender’s net, etc. Although rare, in some cases, the commissions can be reduced further due to investor guidelines, etc. The average commission that Platinum Group Services has been able to obtain through negotiations with the lenders is 5.5%.
- HAFA guidelines state that a servicer should pay the full commission listed in the Listing Agreement, up to 6%, however not all loans are eligible under HAFA.
- The average timeframe to receive a short sale decision varies by lender, investor/MI company, number of liens being negotiated, etc. Certain lenders such as Bank of America, Chase, PNC and SunTrust tend to take a longer timeframe to render a decision. FHA and VA transactions tend to take longer than conventional transactions when negotiation a short sale.
- Platinum Group Services will contact the lender continually during the short sale negotiation process, but we cannot control the lender’s turnaround timeframes.
- Most lenders are trending towards requiring that the seller be at least 31 days delinquent on their mortgage in order to consider the short sale transaction for approval. FHA does require that the seller be at least 31 days delinquent on their mortgage before issuing an approval. Platinum Group Services will not advise any party on whether the seller should make a mortgage payment.
- When a buyer is released from a contract and a new buyer is submitted to the lender, most lenders are requiring that the short sale process start over from the beginning with the new buyer.
- Most lenders will pay delinquent property taxes but will not pay delinquent HOA dues on behalf of the seller. The seller should be prepared to pay any delinquent HOA dues or liens.
- Generally lenders will not pay more than a 3% seller concession for buyer’s closing costs. If the seller has an FHA loan, the lender will approve a 1% seller concession or less.
- Approvals can result in the lender waiving the entire amount of the deficiency, reserving the right to pursue a deficiency after the short sale, releasing the lien without releasing the seller from the terms of the Note, or a promissory note. This is determined at the end approval stage and varies according to investor guidelines, PMI guidelines, and the lender’s net. HAFA guidelines state that a servicer must release a seller from all liability after a short sale transaction settles, however not all loans are eligible under HAFA.
- Lenders may require the seller to contribute financially to the short sale due to investor guidelines, or to remove the deficiency judgment or promissory note.
Contact us at 866-844-2659