Home > Blogs > Bryant Tutas > Broker Bryant's Real Estate Ramblings

My time is short. Can I do a Short?

By Bryant Tutas

Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

June 21, 2009 08:28 AM

Florida Short Sale

Hi folks. A few months ago I had Sellers call me who had just received notice that their property was being sold at auction in 10 days. Of course they wanted to know if I could help. As the good little Broker that I am I said “Maybe”. I asked a few qualifying questions and found out the property was:

Purchased as a “flip” that flopped.

They had a first Mortgage with 1st Horizon and a 2nd with Etrade.

The mortgage balances totaled roughly $220,000 and the property was worth about $60,000.

The Sellers had recently divorced.

One was in California and the other was in China.

The biggest obstacle of course was the auction date barreling down on us. Both Sellers would have to get me their financial information very quickly AND we would need to find a Buyer…… yesterday.

So my question is……..would you take this listing?

***In order to be successful with Short Sales you have to be able to pick and choose who to work with. You have to make sure the Sellers qualify and you have to make sure they are motivated. Want to learn more?

Re-Blog

Comments(30)

Comment

Show All Comments

Sort:

Carol Culkin

Diamond Partners Inc - Overland Park, KS

Overland Park Residential Real Estate

BB - Not I. I would rather save myself to dedicate for more worthwhile transactions, ones which I might have a better chance at getting paid for.

Jun 21, 2009 05:57 PM

Ann Cummings

RE/MAX Shoreline - NH and Maine - Portsmouth, NH

Portsmouth NH Real Estate Preferrable Agent

Hi BB - I'd have to really look hard at all the pieces to this particular puzzle to see if I thought that realistically anything could be done in that short amount of time.

I often wonder why people wait so long to reach out to their broker, or any broker for that matter, to try to get some help. Why wait until the auction date is barreling down on you to call for help? Do it at the first hint of possible trouble and then help can really be had.

Ann

Jun 21, 2009 10:32 PM

Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

So what did you do? Inquiring minds want to know. Oh, and by the way, I wouldn't have taken it.

Jun 21, 2009 10:53 PM

Kathy Torline

ERA Herman Group Real Estate - Colorado Springs, CO

Colorado Springs Real Estate Blog 719-287-1049

Great question about taking the listing. I wouldn't have taken it, unless the sellers had already been in conversations with the lender; then it seems like there is a better chance of getting the auction date postponed.

Jun 21, 2009 11:32 PM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

WOW! Lokks like the concensus was to not take the listing. I'll come back at the end of the day and let you know how this one turned out.

Jun 21, 2009 11:51 PM

Karen Luke

South Metro Property Management, LLC - McDonough, GA

Henry County Real Estate

Nope.

Waiting to see the end result.

Jun 22, 2009 01:12 AM

Wanda Kubat-Nerdin - Wanda Can!

Red Rock Real Estate (435) 632-9374 - St. George, UT

St. George Utah Area Residential Sales Agent

Bryant, There is not enough time to take care of all the details...no, I would not take this one!

Jun 22, 2009 02:14 AM

Dan Magstadt

Paramount Residential Mortgage Group, Inc - Lake City, FL

Not a short sale, especially one with two mortgages - You don't have time to get anything done if the sale is 10 days away.

Jun 22, 2009 03:06 AM

Ginger Harper

Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC

Your Southport~Oak Island Agent~Brunswick County!

I love a challenge. Go for it..

Ginger

Jun 22, 2009 03:39 AM

Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

I've taken that one, had a divorce situation, one owner in Montana one here in Oregon, the auction was scheduled for Tuesday and here it was Sunday afternoon. I decided to try to help since it was a referral and though I got it done and sold, I personally don't think I would try it again.

Todd Clark - www.LivingBeaverton.com

Jun 22, 2009 04:55 AM

Ed Schneider

Evers & Co. Real Estate Inc. - Washington, DC

Washington DC Real Estate Specialist

In a word: NO.

Jun 22, 2009 07:59 AM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

OK so I'm back to spill the beans. I DID list this property. Not only did I list it but I closed on it in 45 days.

I was a little hesitant to do it but after speaking with the sellers I really wanted to try and help. So as soon as I got off the phone with the sellers I contacted one of my investors to see if he was interested in buying the property. He was.

The Sellers sent me the release to talk to their lenders and I called the first lien holder imediately to let them know I had a cash buyer for the property and that there was an auction scheduled for 10 days from now. "What can we do to stop the auction date?" They told me to send over the offer. I did.

Ther next day I had all of the info from the seller related to their financials and submitted the rest of the Short Sale Package. Then I contacted the 2nd lien holder who was very anxious to get "something" since they were getting ready to lose it all.

Long story short. All the pieces fell into place and the transaction closed with nary a hitch. This was a Short Sale I almost didn't get involved in. I just had a hunch I could do it.

The key was having an Investor ready to act immediately.

Bryant, I want to thank you for all the help you provided in a professional manner. The short sell went well considering all the negotiations you had to do with First Horizon and Etrade. The end result saved us money and I hope some of our credit rating. I would not hesitate to recommend you to anyone interested in purchasing a home or doing a short sell.

Best Regards to you in the future,
David XXXX Successful Short Sale closing Feb '09

Jun 22, 2009 11:18 AM

AMBER NOBLE GARLAND - Top Real Estate Expert, Property Tax Appeal Specialist & Author

Strategic Marketing Expert & Relocation Specialist Serving New Jersey and nationwide! - Marlboro, NJ

- The Agent You Can Trust To Deliver REAL Results!

Looks like you figured this one out and beat the odds. Glad it worked out for all.

Jun 22, 2009 05:14 PM

Satar Naghshineh

Satar - Amiri Property and Financial Services Corp. - Irvine, CA

"The key was having an Investor ready to act immediately."

Very true. Thats why finding a buyer was not an issue. Congrats. You handled it the same way I would have done, well, almost the same! ;)

Great Post!

Jun 22, 2009 06:17 PM

Andrea Swiedler

Berkshire Hathaway HomeServices New England Properties - New Milford, CT

Realtor, Southern Litchfield County CT

BB, had to come back and see what you did. If this were to happen here to me, I would not have had an investor, but this does bring up a good plan in my mind. So, again, you teach me something.

Oh, my plan, call the agents who do have investors.....

Jun 22, 2009 11:49 PM

Gary L. Waters Broker Associate, Bucci Realty

Bucci Realty, Inc. - Melbourne, FL

Eighteen Years Experience in Brevard County

So I came in a bit late and saw your answer....Like most I guess I would have had a missed opportunity here as I would have skipped on it. Well done.

Jun 22, 2009 11:50 PM

Sidney Jimenez

Keller Williams - Miramar, FL

CDPE, Short Sale Expert, 954-665-9449,

Good Job Broker Bryant.

I got here to late to give my response but I thought there was a bit of work to do before I would decide not to take the listing. I would need to know if the lender was willing to stall the sale ( a phone call might get that answer), I would see if there was any previous contact with the lender and another deal in place, that might not have been to the liking of the sellers, and I would have tried to gauge the sellers cooperation by requesting lots of paperwork from them. After a couple of days the answers to those questions would have given me an answer.

Again, good work. Let's remember the folks that are looking for this kind of professionalism before we decide "yay" or "nay"

Become a CDPE Today

Jun 24, 2009 04:20 AM

Sidney Jimenez

Keller Williams - Miramar, FL

CDPE, Short Sale Expert, 954-665-9449,

Good Job Broker Bryant.

Again, good work. Let's remember the folks that are looking for this kind of professionalism before we decide "yay" or "nay"

Become a CDPE Today

Jun 24, 2009 04:20 AM

Katerina Gasset

The Gasset Group & Get It Done For Me Virtual Services - Provo, UT

Amplify Your Real Estate & Life Dreams!

I would:

Take the listing, get an offer fast,

Have the sellers hire the attorney we use here for emergency hearings and bring that offer to the judge.

The judge will 99% of the time, give a 90 day extension to close the short sale.

And the sellers would be required to sign indemnity clauses for our company in case the deal did not happen. They need to know there are no guarantees, we will give it our best shot, but we are not liable should the auction not stop.

Jun 24, 2009 08:36 AM

Anonymous

Mori

Broker Bryant,

You got the sellers (one in CA and one in China) to sign off on the offer in ONE day. That is the very reason, I would NOT have taken this listing. I am pretty versed at short sales but I am very realistic....That was amazing!

Mori Langshaw Sr. --->http://www.MoriLangshawSr.com

Jul 06, 2009 05:55 AM

#30