Yes, but initially I didn’t have the big “hey this is my house” post (it was <140 chars and 2 people liked it). It’s painful to read 2009 me. I was (am probably still) immature. I did, however, find this description of all the steps, and I think it’s interesting for anyone preparing themselves to get an amazing home deal. What I went through below is worth about $250k or more.
So you want to buy a short sale?
1. Made offer of $149K (2-26-2009)
2. Applied for FHA loan
3. Informed that property is going to auction.
4. Informed that property won’t go to auction; offer is being reviewed.
5. Wait for Aurora’s appraisal
6. Counter offered $152,750.00
7. Counter offer accepted.
8. Rate lock expires. Extension acquired.
9. Move out of apartment. Landlord illegally keeps deposit.
10. FHA loan denied based on insufficient HOA reserves.
11. Apply for conventional loan.
12. MI company counter offers seller w/ promissory note.
13. Seller rejects promissory note. MI company denies claim.
14. Aurora sends property to foreclosure department.
15. MI company offers to pay claim less $9000.
16. Aurora asks for another $9000.
17. Agree to another $9000.
18. Informed that I have insufficient funds to close, because they never told me the closing costs.
19. Rate lock expires. Extension Acquired.
20. Waiting for final approval from Aurora.
21. Approval submitted to management by floor manager. Expected in “24-48 hrs”
22. Asset manager sends approval but for the wrong property.
23. Obtain additional rate extension.
24. Received approval for right property but with the wrong price (off by $18k).
25. Received approval for right property but with wrong price (off by $9k)
26. Approval submitted again to floor manager. Expected in “24-48 hrs”. (7-20-09)
27. Rate lock expires. Extension acquired.
28. Landlords don’t respond to Verification of Residency. B of A asks for canceled checks from all rent and utility payments in the past year. I provide the confirmation numbers of online B of A payments and transfers, and B of A rejects these as proof of payment.
29. Received new approval letter from Aurora (correct so far; expires in 1 week). Missing final approval on loan because of lack of VOR.
30. Bank waives VOR requirement.
31. Documents sent to title.
32. Closing scheduled for 8AM 7/24/09. (Not out of woods yet; still need BofA to fund loan after closing, before 7/29/09 when Aurora approval expires).
33. Signing canceled because final sales price from Aurora does not match the form of the final sales price from BofA. Will have to check with BofA to see if docs will have to be rewritten.
34. B of A underwriting requires an additional signed addendum changing the sales price to $152,750.00 with an additional credit to the seller of $9000 for closing costs.
35. Rate lock extension acquired. Extension from Aurora acquired.
36. SIGNED at title company!!!!!!!!!! (cross your fingers the seller doesn’t die before signing)
37. KEYS!! BAM. It’s over. (7/30/2009)
* Last 2 weeks Paystubs
* Last 2 years W-2’s
* Proof of college enrollment
* Verification of Employment/Income (faxed by work)
* Verification of Employment (verbal)
* Proof of 401(k) balances
* Last 2 months bank statements for all accounts
* Last 2 years of landlord info (Names, Phone numbers, addresses)
* Explanation of why Bank account is in Georgia
* Signed Gift Letter
* Proof that Gift Letter related funds have (1) left the gifter account and (2) entered giftee account
* Checks used to deposit Gift Letter funds
* Earnest Deposit (Escrow receipt)
* Credit Score
* HOA survey information
* Signed contract
* Signed contract addendum
* proof of homeowner’s insurance
* Records of all rent and utility payments in the past year
Information they tried to deny me:
* B of A’s appraisal (got it; it was bullshit)
* Closing costs