We had an interesting response from a short sale negotiator the other day,
REJECTED!
This is noteworthy because the seller is really a distressed seller. This is not a sale of convenience. The hardship is obvious: a divorce with extensive attorney’s fees, a severe cut in job hours, 6 months of delinquent mortgage payments on a home that is worth $55,000 less than the mortgage. It seemed pretty clear to my team that this seller is in need of relief.
It is also interesting to note that the lender didn’t even bother to counter the offer that was on the table. It was simply rejected. When asked why the offer was rejected without a counter, the negotiator simply replied that the borrower didn’t “qualify” for an approved short sale. Huh?
After some creative fact finding, the truth finally came out as to what was going on, the lender is more financially distressed than the borrower!
The lending institution is a local bank that, as research would show, is being investigated by the FDIC. Apparently they are on the verge of being seized and are trying to balance books in any way possible. It seems that juggling their short sales is an effective method of hiding non performing assets!
Maybe we need a form to determine whether the lender is distressed before we list short sales?!
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