My Life as a San Francisco Realtor: Patelco Credit Union Denies CA Short Sale

Patelco Credit Union Denies CA Short Sale

Patelco Credit Union Denies CA Short Sale

No, I'm NOT an Active Rain Junkie. I just can't sleep. I went to bed tonight at 10:30pm, but I woke up at 1:30am. This is on my mind and I can't make it stop. I have to write about it. It's now 2:30am, so here goes.

I submitted a short sale package to Patelco Credit Union a month ago for a Short Sale in Antioch, CA. They promised a response in 10 to 15 business days. I got that response today at 6:05pm via email from the Short Sale/REO Administrator. I'll include her response from the email as well as the email history at the end of this post.

My client is in the midst of a divorce, what better reason for a short sale!!?? His father is disabled from a stroke, and his mother who was free from breast cancer is seeing a recurrence. The two grown children who are living at home because they lost their jobs depend on their father now more than ever. I mean, really, can it get any worse than this?

I have an offer from another agent. Her clients are hanging in there. They were even required by Patelco Credit Union to provide a DU Approval to Patelco Credit Union. This is far beyond the norm. Their offer is above market. I promise you, Patelco Credit Union will likely not see a better offer on an REO.

I was approached by Patelco Credit Union to apply for an REO listing in San Bruno 6 months ago. They wanted someone who was CDPE certified. I wasn't at the time - I was taking the course on line. (I am now.) I didn't get the listing. Could I get this one? But that seems so wrong.

I'll be calling the Short Sale/REO Administrator on Wednesday to ask her why the Short Sale is denied. Are they above Government regulations? What can be their benefit? Can they pursue money lost if they foreclose? California is a non-recourse state, meaning that if they do foreclose, the lender cannot come after you for the lost value. They can however issue you a 1099 for the lost value. With the possibility of a successful Short Sale right in front of us, why would Patelco JUST SAY NO?

 After waiting and being so hopeful, the response from Patelco simply said: 




Thank you for all of the information/documentation  you provided.


After careful consideration of the short sale request, management has denied the request for a short sale.




John M Scott, Broker / Owner, Scott Keys Properties, Certified Distressed Property Expert (CDPE), Council of Real Estate Brokerage Managers (CRB), serving San Francisco and the surrounding San Francisco Bay Area

Comment balloon 8 commentsJohn M. Scott • September 21 2011 06:10AM


There is only one question to ask here - WHY?

Posted by Jane Peters, Los Angeles real estate concierge services (Home Jane Realty) over 7 years ago

Jane, I've been trying to ask that question all day. No Answer from her phone. I'll just keep trying until she picks up....

Posted by John M. Scott, Broker / Owner San Francisco Bay Area (BRE # 01442690, Scott Keys Properties) over 7 years ago


I'd ask to speak with the manager and see if you can get past the administrator.

Question: is your client behind on his payments? If they see that he's still making the payments, they will interpret that only one way: that he can afford it.

I had a client who had applied with CALHFA for short sale. We had a buyer for over list price. But the seller hadn't missed a payment -- she used up all her savings to keep up. She was denied. Four months later, she calls me to try again. We re-list. Get a new offer quickly. This time, she was behind by 4 months. Would you believe they approved it this time? Guess this is one of the reasons why some folks resort to missing payments so that they can add to the hardship and get their short sale approved.


Posted by Pacita Dimacali, Alameda/Contra Costa Counties CA (Alain Pinel) over 7 years ago

Keep in mind that there are copyright laws involved with exposing emails. It's best to simply tell us what went on.

Happy Friday!

Posted by Not a real person over 7 years ago

Pacita, the manager actually called me after someone in his office saw this blog post. It comes up in google as number 2 or 3 in a google search for Patelco Short Sales. I'll write a members only post about the discussion.

Posted by John M. Scott, Broker / Owner San Francisco Bay Area (BRE # 01442690, Scott Keys Properties) over 7 years ago

Thanks for the reminder Russel. I'll keep it in mind. Maybe I wasn't thinking to clearly at 2am or 3am....

Posted by John M. Scott, Broker / Owner San Francisco Bay Area (BRE # 01442690, Scott Keys Properties) over 7 years ago

I think that Patelco still has time to reconsider... Patelco, I know you are reading this and I think that this would be great PR when we all are commenting on what a great lender you are... this is clearly not a case of strategic default so let's work with the seller!  It is going to take you just as long (if not longer) to take the property back, relist and find a buyer...

Posted by Chandler Real Estate Liz Harris, MBA, #ChandlerRealEstateAgent (Liz Harris Realty) over 7 years ago

I have a Short Sale in process on my non-Resident property with Patelco. Short Sale started 8 months ago. They didn't do anything for 3 months, then started asking for many unreasonable things, and setting deadlines that we next to impossible to meet. They finally stopped extending the Foreclosure Sale. I had to file Chp 13 BK in order to halt the foreclosure, there Rep said it would give them enough time to approve the Sale. Then after 15 days ago, and 4 other offers, they approved the Short Sale, but COE was in 10 days, which in impossible since it takes 15 - 20 days to file a contingent release with the Court and get approval. They told my RE that they would not consider extending the COE. Then they informed my BK lawyer that they were expecting me to dismiss the BK, not file for a contingent release.

I really don't get it, why don't they just say they are not interested in doing a Short Sale and are going to foreclose no matter what?

Sorry, I didn't use my real name, but still battling in court, don't want the exposure.

Posted by Checkers over 6 years ago