What a duzzie....I've been working this Short Sale and have reported on it here in another post in regards to the difficulty in getting this property to close by just trying to find a Lender who will lend in the deliquent condo community. Well, two Buyers later with the 2nd Buyer having gone through 3 Lenders to be able to secure financing it's now down to can we stop the foreclosure auction date tomorrow? The Buyer found a Lender to finance in the distressed condo community as the Buyer is a A+ rated Buyer. The Buyer's Lender did their appraisal and the appraisal came in $10,000 below previously approved price of $115,000. Due to the length of time in getting Bank of America to process and approve this, the value dropped dramatically (a whole other post to talk about; timeframes with Bank of America.)
I submitted reduced appraised value to Bank of America and they initially rejected it saying that it wasn't meeting approved net. They were simply looking at the current needed net according to the $115,000 approved price. Well, I knew that the net would differ with a $10,000 reduction in value and what the Buyer now was willing to pay and what needed to happen was to re evaluate fair market value. I kept getting the same answer, "no" they wouldn't approve the new lower net.
It didn't make sense and I didn't take "no" for an answer. To me it was very simple, if the appriased value is at $105,000 that means you will not find a Buyer who will purchase the property for above market value; would you?! It was very clear if they didn't approve the new value then it would go to auction and the foreclosed value would decline rapidly. Common Sense....does anybody have common sense?
I tracked down management as I know that I had to find somebody who had common sense. It worked and management agreed - $105,000 would be approved. However, due to the delay in getting the new updated approval and in needing the Investor to postpone the foreclosure sale date, I'm standing still waiting to see if it can be postponed in time as I was just given the verbal approval this afternoon.
Stay tuned in the days ahead....Can we stop the auction tomorrow? Have you ever had the pleasure in going through such a scenario?