ActiveRain – I Need Your Help. Is This a Short Sale? How Would You Counsel this Seller?

 Bill Nazur - I want to thank you for your input.  You have truly come up with a great solution - if indeed they can swing the extra $100.  Unfortunately, it the loan will be resetting in 2 months - so I am not sure just how viable this solution is.  My guess, your placeholder for the wife's income is probably pretty close.

I am sure the Pastor and his wife will read what you have suggested and consider it in prayer, as they will all of their options.

Once again, after I have had my meeting and whatever course of action is put into play, I will report back to each of you who have responded.

Until then, Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty

Paul Moye - I believe the condo is realistically in the $370 to $380K range - it really depends on the upgrades and condition.  since I have not seen the unit, I cannot give an opinion.  Based on what I see on paper though - the $370 to $380 is very realistic in today's market - now what will that look like in 90 days?  hmmmm, I wonder

The pastor is trying to get past the first line of defence with the lender and get to someone with some authority this week, before we meet on Wednesday.  He is sincerely seeking solutions - which is hwy I have posted this article - to help him with the collective mindset of some of the best REALTOR minds on the topic - in the entire country.

I'll address the resolution after we meet on Wednesday.

Thanks again for chiming in.

Now, Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty

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First I need to apologize for the delay in reporting on the ultimate outcome.  I know that there are several who really wanted to know what the results were.  I have just gotten so busy this last week - all due to ActiveRain.  I signed 4 new listings and actually passed on 2 - all since last weekend.  On one night, I did not get home until midnight - so I have been burning the candle at both ends.

Second, on behalf of my client he and his wife want to thank everyone who thoughtfully offered their advise on the situation.  My client thought I did a very good job of representing his viewpoint and situation.  My client and his wife carefully considered every comment and suggestion that was made - and do so with prayer.

Ultimately, when I arrived and my client had full opportunity to not only read this thread but my book"What You Need to Know About Foreclosure, and How You Can Stop It!", the decision was made to go exactly as we had discussed the proceeding week on the telephone - without ever meeting face to face.

The decision that the Pastor and his wife made were to continue to negotiate with the bank.  Remember, up to the end of July - they are current with thier first and second loans.  Starting this month, thew will start to make partial payments.  As they slip into the status of being delinquent - they are hoping someone from thier lenders office will talk to them a bit more seriously.  Right now they can't seem to penetrate the first level of obnoxious collectors who only talk about full payments - this will change.

Yes, they know this will be a hit on their credit as far as late payments go.  A temporary setback.

There is anticipation that the bill passed by congress will move quickly through the Senate and find it's way to the Presidents desk in the next few months, once the Senate returns from their summer break.  Then if passed, there is probably a pretty good shat at the effective date being around the 1st of the year. 

If this scenario plays itself out, then my client will not have to worry about the tax consequences of a Short Sale. However, there are no guarantees that it will pass or what the effective date will be.  My client feels as if they at least have a target date to move forward with.

So, yes, I did take the listing, I took the photos and I have the listing on the MLS - for a price that will pay off the lenders, pay all of the closing costs and pay a 6% REALTOR® commission for selling the home.  Unfortunately the listing is priced about $30K over current fair market value..  The listing period is for 1 year - so there is no pressure from me or to me to do anything other than list the property and market it on the Internet.  I have a lock box and sign on the property - it is for sale.

So, am I prepared for a Short Sale - YES.

Are we jumping in blindly - NO

The client will position himself to talk to others at the lenders office with more authority.  It's a shame he can't just pick up the phone and try to work out a solution to his problem - but the lender is not set up that way - so he must play by their rules and take a hit on the credit.  If he can't resolve anything - then so be it - he is prepared to start the short sale process as soon as he receives his Notice of Default (NOD).

There you have it - not a quick fix with ramifications but a long term solution that can take many courses of action - depending on the parties involved - and just in case the short sale safety net has been hung under this high wire act.

Thanks again for chiming in.

Now, Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty

Thanks Mary,

I was thinking the same think - hence the email.

The Pastor will know he is in your prayers, as I know he will check back here.

Now, Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty

Now, Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty

Bill Roberts - Thaks for the confidence - If I had the time, it would be a new post - I'll try.  I also have several other case histories I want to put out there as a learning experience as well as letting the client see their options.

Time, where can I go buy an extra 2 days this week?

Now, Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty

 Mary Warren - Thanks for the heads up.  I am sure by now the Pastor already knows that he is in yor prayers.  On his behlf, please allow me to thank you.  As I mentioned above, I would like to do a summary post -and please come back because I have some additional case studies to present.

Now, Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty

Now, Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty

Paul Moye - I'll domy best to get it back up this week - just a very busy week.  I agree, it is here to help others - not be slef-serving.

There is so much to learn anbout this niche and I am afraid too many are going to jum in without being prepared and make mistakes that will cost thier clients dearly.

Now, Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty

Coach Steve Toth - Thanks for the feedback.  I was certian I had replied to you earlier - In any event it may not work 100% of the time, but ther are times when it will work.  My lender has allowed me to do this several times over the past couple of years.

If nothing else, it will buy some time with the lender.  The Pastor knows there are no guarantees in any of this - yet this seems to be the logical course of action considering his unique circumstances.

Now, Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty