Insight Into a Green Tree Short Sale in Sacramento

Short Sale 1 SacramentoI know a Sacramento short sale agent or two who will not work on a Green Tree short sale, but I manage to get these short sales accepted. I will admit that it’s a bit easier when Green Tree is in first position (and perhaps just the servicer) than it is when Green Tree is in second position and say, hard money. Especially in California. Because those hard-money second loans carry recourse.

This means if the bank did not approve the short sale and the home went to foreclosure, a second lender may have the right to go after the seller and try to collect if that loan was not purchase money. It’s also a reason that some banks, not necessarily just Green Tree, might think twice about approving a short sale. Because if the bank approves the short sale, the bank needs to release the seller from personal liability. That’s not the case with foreclosure of hard-money loans. Moreover, sometimes banks are paid more money to go to foreclosure.

Green Tree’s policy is to approve a short sale in 90 days. It’s not unusual, depending on the negotiator, for Green Tree to issue the short sale approval letter in a shorter time frame. One of the troubles that can arise is Green Tree, when in second position, might issue short sale approval before the first lender. If the first lender takes too long, that approval from Green Tree can expire. If it expires, Green Tree might not issue an extension. A short sale extension is not always guaranteed, even though some people might think so.

On the other hand, if the short sale approval from Green Tree has expired, it might also send the file to its charge-off department, depending on the length of time that transpired after the last mortgage payment. Once the file gets to the short sale charge-off team, there is no guarantee that the department will accept the same terms as stated in the previous approval letter.

If you’re looking for a short sale agent in the Sacramento Valley to handle your short sale, you should select an agent with vast experience. I’ve sold more than $65 million in short sales since 2006. Call Elizabeth Weintraub at 916.233.6759.

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