Good Morning
If you have worked with short sales you know how intricate and involved the process could be and is.
We had a short sale with two banks. The first was a Fanny Mae backed loan and according to its guidelines concerning the second. It would only allow for 6% of the loan balance of the second to be paid to the second.
The second was $28000. They were not going to settle for $1680. However here was the glitch, The first would not allow the owner to play what the second wanted($5000). The First would not allow the agents to contribute anything to the second(the sale of the first was $50,000 there really wasn't a whole lot of commission money anyway).
So we thought, "We will find a cash buyer who will see that this is a good investment and will step up to the plate and pay the second the monies they needed to release the lein and satisfy the note" We did find a buyer for whom that was true and guess what????? The First would not allow the buyer to pay the second. We thought how do we get over this hurdle???
We called the second and asked them if they would negotiate a loan modification from $28000 to $5000.
Unbelievable, they did. Our clients reluctantly signed a $5000 note to be paid over X amount of years at no
interest. OK
The Deal closed and although we had not achieved exactly what we wanted it was better than a stick in the eye.
Guess what? a few month later our clients recieved correspondence from the bank. The note was paid in full, released and done. How? I am not sure. however I put this question to Vanessa Liddell at one of her short sale classes- she is a most excellant teacher. And in a nutshell --- SB 584 is probably the new law that came into play. Needless to say, we asked our client to come into the office and make a phone call to the bank. With great joy we all heard the good news!!! Paid in Full, Released, done, over. Thats it.
Not all short sale stories end with a surprise in favor of the client. This one did.
Another Great Day in Real Estate
You make it a great Day
Val
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