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Question on short sales...anyone know the answer?

By Karen Monsour

Real Estate Agent with Coldwell Banker Fort Lauderdale Beach

June 18, 2010 01:50 PM

Question on short sales...anyone know the answer?

If the closing date for a short sales first mortgage is (for example 1/15/10) and the second mortgage gives you until 2/15/10 to close...is that realistic?

I always thought that both the first and the second needed to close at the same time.

So, you would close the first on 1/15/10 and close the total deal on 2/15/10 - this makes no sense to me...however. I am working a deal right now and this is the situation.

PLEASE HELP...ASAP

http://KarenMonsour.com , 954-464-4194 CELL

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Chris Ann Cleland

Long and Foster Real Estate - Gainesville, VA

Associate Broker, Bristow, VA

Karen: The sale needs to close on one day. What you'll need to do is give the second trust's approval letter to the first trust and ask for an amendment to the later date, since usuallythe first's approval has an earlier date as it was gained earlier.

Jun 18, 2010 01:55 PM

Lanre-"THE REAL ESTATE FARMER" Folayan

Samson Properties - Bowie, MD

I don't make promises.I deliver results.SOLD HOMES

Karen I stopped by because I have never heard of this before. Then again I am not a Short sale expert either. Just from Chris Ann Cleland comment,I learned something today. Thanks Karen and Chris. Have a great weekend. Great post.

Jun 18, 2010 02:29 PM

Karen Monsour

Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL

REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Chris,

I agree...but this is a million dollar purchase and what the buyer is saying that he might need the extra few days to get the rest of the cash...I already know what you are saying...What you have said has already been done.

Thank you for posting though.

Jun 18, 2010 02:48 PM

Karen Monsour

Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL

REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Lanre,

I agree with her to a point,,,however, we're past that ...Way past...

Jun 18, 2010 02:50 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

The first is the superior loan. The second needs to make a deal with the first, first. Then close the first and the second is already assigned by the first.

Jun 18, 2010 04:43 PM

Missy Caulk

Missy Caulk TEAM - Ann Arbor, MI

Savvy Realtor - Ann Arbor Real Estate

I have seen two letters with two time frames. Have the first work it out with the second.

Jun 19, 2010 12:37 AM

Karen Monsour

Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL

REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Lenn and Missy,

The problem with this situation is that the short sale processor hired by the seller cannot seem to figure out how to tell the second the date we want to close the first, which is next Friday. So when my buyer saw the approval and said, Oh that's great, I have until the 15th of next month to get the rest of the money...this is what caused the mess.

My suggestion to my buyer was to try and get this all closed next Friday...all I see if they don't close at the same time is more issues.

But thank you for commenting.

Jun 19, 2010 09:02 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Karen. HA! I suspect that the problem might be that the seller hired a processor. The most successful short sales we've had and we close a lot of them are handled by the listing agent.

Jun 19, 2010 11:15 AM

Marcy Moyer

eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales - Mountain View, CA

Probate, Trust, and Investment Specialist

Karen,

You will need to get the first lender to extend the closing date if the second can not close faster. I have found that sometimes the second will deal with the first, but more often you need to do it yourself. It may take a while to get the answer from the first, but be nicely persistant.

Marcy

Jun 19, 2010 12:08 PM

Real Estate Investing |Real Estate Investment

| Real Estate Radio USA - Fort Lauderdale, FL

Here's the real question that you don't answer. Is this an all cash deal? If so, then you don't have a problem.

Jun 20, 2010 01:17 PM

Michael Ford

Coldwell Banker Heritage Homes - Marion, AR

Matching Families with Homes

Karen you cannot close that loan until the 2nd decides to close when the 1st is closed. Will you closing attorney close the them at different times? How do you give someone clear title. Way to many problems.

Jun 20, 2010 02:44 PM

Karen Monsour

Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL

REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Lenn,

The listing agent is the owner....so there in is the problem....and he is not cooperative...

Jun 20, 2010 03:20 PM

Karen Monsour

Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL

REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Missy,

I'm not green here...I'm the short sale queen of my office...tried that...but thank you for posting here....it is difficult.

Jun 20, 2010 03:20 PM

Karen Monsour

Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL

REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

REInvesting....YEP, IT'S ALL CASH...amazing, I wrote this offer about this time a year ago.

I'm the short sale Queen of the office, however, I have never had a second offering to close after the first....they have always closed the same day...This will too, after coversations today.

Jun 20, 2010 03:25 PM

Karen Monsour

Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL

REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Michael...I'm over this debacle...were closing both this Friday... but thank you for your post.

Jun 20, 2010 03:26 PM

Real Estate Investing |Real Estate Investment

| Real Estate Radio USA - Fort Lauderdale, FL

Well Karen..if it's cash you have no problems. If you need info on how to get it closed without a hitch feel free to email me and I'll tell you how. It's really easy. and in reference to being the Short Sale Queen of your office..I'm sure you by now know our status in the short sale world.

Jun 20, 2010 03:56 PM

Karen Monsour

Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL

REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

HA! Well, finally got bank approval, HOWEVER, THE SELLER WON'T SIGN...HAS NO WHERE TO MOVE, SO HE IS screwing over the buyer after a year of 6 people working to the tune of about $60K and that includes my commission................NOW WHAT - closing date was to be by 6/26/10 and it is costing the buyer over $300. a day with the delay of closing...they buer has cash and was ready to close last week............what to do..

Short sale Queen...hate that title.

Jun 29, 2010 03:35 PM

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