The following is very sad and very true:
About 5 years ago a couple purchases a house using a sizable down payment. She works for the government, he's a self-employed contractor.
A year or so later, he was killed in a head-on collision. About enough insurance to bury him.
She stayed in the house as long as possible, but knew she wouldn't be able to make the payments by herself. She contacts me to list the house, cleans it out, repaints, makes all the necessary repairs and moves into a rental. List price is good, many many showings but only one not-so good offer, which her lender/servicer would have to approve. The full short sale package is submitted: financials, late or no payment history, hardship letter, everything!
The mortgage company finally responds to the not-so-good offer by telling her, don't sell short! Move back in! We want to work with you to let you keep your home! YAY!!!
So we take the house off the market. She moves back and is actively working with her mortgage company to modify her loan.
Last week she calls me. The mortgage company has denied her loan modification.
Sold comps, actives and pending sales have all plummeted in value. Her house is now back on the market at a lesser asking price than the original not-so-good offer.
She's angry. I'm angry. The government she works for and pays taxes to can't/won't help her.
This is an American short sale. And its my definition of INSANITY.
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