Late yesterday I was thrilled to open up an email from one of my pending short sale negotiations to find out that we had gotten the extension we had requested. Buyer did not have final "clear to close" on his loan and we needed 7 days to make sure we could close.
A few hours after receiving the extension I finally received an email from the buyer's agent that loan was out of underwriting and that the clear to close should be available tomorrow.
I went to bed thinking that all the loose ends were taken care of and I had a solid closing coming this Friday....sweet dreams.
Early morning Tuesday and I find another email from the servicing lender. Must be a duplicate of the previous approval. As I opened up the attachments my heart almost stopped...what is this new attachment??? The lender had sent the investor's new request - they wanted the seller to sign a promissory note for 10K before allowing the short sale to take place.
I immediately sent the negotiator an email requesting an explanation of this new requirement. The answer was that the investor required it because of the request for an extension. This was for the added expense of the delay???
After the smoke cleared from my eyes and after ranting and raving about the total loss of common sense in today's world especially with this investor who has a similar nickname as the company that makes those delicious chocolates especially those Turtles...I sent an email detail the current market stats of the home in question.
My whole morning was spent sending information so that the investor could see how this addition could so very easily derail a deal that took months to put together and that would most likely force the homeowner to let it go into foreclosure because they were not going to sign a promissory note when they couldn't afford to keep the place due to loss of income.
Long story short I finally got a NEW Revised approval letter without the additional promissory note. I guess when they realized that with 70 current active listings and only 5 sales in the last month with 3 of those being foreclosures or short sale for less than what they were getting on this house that it just MIGHT make business sense to take the money and close on the sale NOW!
Will the greed ever stop from these banks/investors??? Greed is what got them in this situation and its their greed that keeps getting in the way of closing short sales and/or giving people loan modifications.
The negotiations sometimes can go to the very end until the transaction has funded, the release of liens has been sent and recorded and those commission checks have been cashed anything can happen.
Surprises are going to pop up from time to time but with facts and figures and determination you can bring reason and common sense even when its "not negotiable".
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