Working listings that turn to Short Sale Files 

I have had a closing delayed so many times on one property the buyer and seller had nearly given up!

The buyer had credit approval from the lender....then...thinking of reducing debt, paid off a credit card to help the score more!  Wrong...it lowered the score by 6 points because the buyer didn't have as much available credit any longer.  One of those new quirks to credit score ratings.  So we extended the close waiting for another car payment to increase the buyers credit score high enough to re-qualify.  We extended the close because the buyers offer was such a good offer. 

So the seller decides without discussion or council to turn off the utilities because they are sure the sale will happen.  Since this is a short sale....the lender files an abandoned property affidavit, to get possession of the property in 30 days.  The issue is, the property is not abandoned...the seller has furniture...gets their mail there...they are trying to save money.  The seller moves into the parents second home, furnished, also located on a lake for the summer.

The reason the lender filed an affidavit of abandonment...the seller didn't tell me,  they additionally decided to  not to make their house payments either.  So Now my short sale moves into a possible foreclosure.   Shot me now....

Since this has gone back and forth for months, the seller dejected...the buyer having troubles the likelihood of closing getting dimmer by the minute...I press the lender to make a decision on the buyers credit...or suggest another lender with different guidelines. 

It works, the lender waives a few little nagging issues and the buyer is ready to go.

Now the sellers mortgage holder won't respond because of the pending foreclosure action.  I sent five emails....nothing.  I mail five phone calls leaving messages....nothing.

I decide to go over the head of the mitigation processor and contact the head account executive.  I forward my buy/sell, the addendum's, appraisal and it is 38 pages...of course I throw in 20 emails and my phone log copy...the mortgage holder thinks it is snowing paperwork on this case file.

I must have rubbed a magic lantern...I get a response...they are sorry...when can we close?

I prayed before calling all the parties that nothing had changed...

The close date is set....now everyone has to maintain status quo and this is a done deal!

Not so fast sunshine....the new last minute appraisal dropped the homes value again....we have a new sell price...great now what will the mortgage holder do?  Better yet there is a second...they get less too!

I worked that out too....but remember this was a short sale...now a foreclosure and it could have all been done if the first mitigation file manager had done their job.

Lenders don't want these files...they want their books clear.  The tarp fund has created a bit more mud in the water but the bottom line.  Stick with the file and keep great records, while you are working your normal listings,  you will get more closings and more referrals.

Have any delay stories to share?

Live in Grand Rapids or West Michigan area, not under contract?  Like to sell or buy a home....give me a call.  It could save you thousands in your next real estate transaction.  Always confidential, Never Pressured.

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