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Another Successful Short Sale

By Jordon Wheeler

Real Estate Broker/Owner with The Jordon Wheeler Group GA License# 264359

February 18, 2011 01:00 PM

I had a short sale listing in Jonesboro, GA, and it sat for a few months with no activity. The sellers and I initially started with a price that was about 80% of the loan amount. After a month of no activity, I started going to them for permission to drop the price a little every couple of weeks. We finally landed at 40% of the loan amount before we got some interested parties. By then the sellers were packed up and had moved out of the house to be with other family.

When we got the first offer, it was 80% of the asking price and all cash. I presented the offer to the seller's bank, and their process began. A negotiator was assigned to te file, an appraisal was ordered, and he and I started communicating back and forth on what he needed to get us through the first phase of the short sale transaction - the bank's approval for the seller to participate in a short sale.

As we worked through these phase one steps, the appraisal was completed and the appraised value was about 30% higher than the first offer. Meanwhile a second offer comes in just an the bank approves the seller for participation in the HUD PFS Program. This second offer was within 95% of the appraised value, and now we moved on the second phase of the short sale transaction process - negotiation. The bank's negotiator had to get HUD to sign off on the deal, and we had to tweak the purchase price a few hundred dollars to meet HUD's 'net' amount.

Just when I thought we were about to make history and close the deal in less than 30 days, the bankruptcy attorney brought the deal to a halt while she arranged for the bankruptcy court to review and approve the deal. This part of the process in phase three of the short sale transaction took another 45 days. After getting the bankruptcy court's approval and another two weeks of coordinating the closing, we got it done this week.

I applauded the buyer because he hung in there. His original reason for purchasing was due to a divorce situation. However, in the midst of everything happening, he and the wife reconciled. He shared all of this with me at closing. I was definitely surprised that he decided to go forward with the purchase since his motivation had changed. But I was also definitely thankful that he did not back out. He's confident he is getting a great property with a small lake in the backyard and possible place for more romance.

I applaud the sellers because they stuck with me during a very difficult time in their lives - handling the death of one of their children resulting from cancer. The dad really took it hard. At our initial meeting, I was able to relate to them because I had recently experienced my mother's passing, and she had been diagnosed with cancer. The sellers had this to say about my service to them -

I totally agree with you on the short sale significance in the real estate market today. You did a first class job with our property - I know it would have never sold if you had not had the insite to pursue all options open to us to sell that house in lieu of foreclosure. Your persistence made it all possible, like most homeowners - we did not have a clue as to how get that house sold in todays' economy.

Thank you - again!!