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Juggling 2 lein holders on a shortsale

ASC and Ocwen short sale process. One of  the most difficult task when doing a short sale is having 2 lenders to deal with. The juggling process between the first and the second linholders is the delay. With approvals expiring then needing extension and updates it can delay the process. We started this short sale and listing with the buyer in place from day one. We expected it to go rather soon since this was a PCS out of the country for this military member. As you can see it took nearly 6 months to get through this process.



Started the process with a buyer from the listing agreement

November 25th 

American Servicing Company- A division of Wells Fargo. Short Sale Number:

Documents Needed for Short Sale

  • Set the loan up in EQ
  • Hardship Letter, signed and dated
  • Financial Worksheet, signed and dated
  • 30 day pay stubs
  • 60 day bank statement
  • 2011- 2012 tax returns
  • Listing Agreement
  • Purchase Agreement
  • HUD1
  • Preapproval or POF
  • 3rd Party Authorization

By 12/9

Additional documents  were sent to Ocwen via fax. and we requested in EQ to open up in Short Sale for ASC.


  •  12/19 were  in communication with Wells to start gather more details such at the Listing agreement, RMA and the sellers taxes from previous years. 
  • 12/23 Ocwen still is not receiving the authorization forms so they are being resubmitted 2nd time 
  • 12/31 More documents were needed Wells Fargo:

From agent:

  • A name change affidavit that stated the buyer Stephen Long is also Stephen S. D. Long. ( It states both names on the contract)
  • Buyers POF for Down payment amount
  • A clearer copy of the purchase agreement signatures and initials. Bank will not accept electronic signatures and initials.

From sellers:

  • Mortgage Request for Assistance Form ( RMA)
  • Complete 2011 and 2012 tax returns
  • Bank Statement for NFCU account 11/11-present
  • Bank Statement for USAA account 11/28 to present
  • Dec pay stubs


  • Ocwen Package

1/9 Bank appraisals came in and all docs were received by Ocwen

1/9 Wells fargo task in equator were being uploaded.

1/13 Well replies and wanted more information or updates •They need the buyers name change notarized. Stating all of the names he goes by (NAME STRICKEN ) Those are all the names it shows he goes by on contract docs and pof. I have attached a name change affidavit that can be used to do so.

  • They are also in need of an updated pre-approval letter, within the last 30 days.
  • Initials on the purchase contact need to be flip flopped on all pages of the contract
  • Form the sellers they need a clearer copy of the Dec NFCU account. 1st page is cut off.

1/13 Ocwen is still just being processed

1/14 Ocwen approves the shortsale for the 2nd mortgage

1/15 need up dated buyer approval letters and more bank statements from the seller

2/6 File is in review with the 1st mortgage 2nd mortgage approval letter will expired 2/13 multiple calls to follow up with process on the 1st approval

2/21 received the 1st wanted to COUNTER the offer up for a higher net to the bank 

Needed to clean up contract docs per wells fargo ,address, Id # ect..

Asking for the PRELIM HUD

2/24 Increase was agreed on and now starting to ask for the Extension for the 2nd mortgage approval.

2/26 Contract dates, listing date and buyer loan letters need to be updated and extended

3/5 Ocwen receives updates fro the PCS and finances and is reviewing to determine if they will extend the approval on the 2nd mortgage shortage

3/11 STILL needing the approval on the 1st mortgage calling for follow up

3/24 Wells negotiator replies they needed a buyer cost work sheet for the seller concessions.

4/9 Approval on wells for the short sale. Now negotiations again on the 2nd mortgage.  Updated docs requested again .Ocwen needs:

  • Approval letter
  • Purchase contact
  • HUD
  • RMA
  • Updated financials

4/22 Ocwen wanted more information ..They have requested the updated ocwen pkg 19 pg. to be completed by the h/o. (attached)

They have also requested the following:

  • corrected Hud
  • Bank statements
  • Pay stubs
  • Sales contract addendum with an updated  settlement date.
  • 21 pg. ocwen pkg.

4/29 All requested docs are sent in to Ocwen

5/5 confirmed with a call Ocwen has everything 

5/9 Ocwen request Non-Owner Occupant Certification/ Now requesting a EXTENSION for the 1st approval that is about to expire 

5/14 Wells said send the approve on the 2nd when we receive it.

5/16 and 5/19 and 5/20 multiple calls to Ocwen trying to get the approval letter

5/23 All approvals issued clear to close 


5/28 CLOSED file 


I work shortsales.... 75% of my listings are distresed sellers. It not an easy way to make a living but helping someone NOT loose the home to a foreclosure is rewarding. 


Contact me at Http://

Alison Creamer, Realtor, ABR, CDPE
Direct 757.652.8880
Licensed to sell Real Estate in Virginia
Keller Williams Realty
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Sell Hampton Roads Homes



Comment balloon 1 commentAlison Creamer • June 24 2014 09:45AM
Juggling 2 lein holders on a shortsale
ASC and Ocwen short sale process. One of the most difficult task when doing a short sale is having 2 lenders to deal with. The juggling process between the first and the second linholders is the delay. With approvals expiring then needing extension… more