Not All Short Sales have a Happy Ending
The short sale process is getting better and the time it takes to close is shorter. However, there are still hindrances that can stop the process in its tracks as Ed's experience proved. What's great is that this short sale has a happy ending, since another contract seems to be on its way to close.
Not All Short Sales have a Happy Ending
It’s been an interesting 10 days in Central CT for one of my short sales. Short sales can try patience and are stressful for all involved. The banks holding the mortgages want to make sure they are not being taken for a ride by a deceptive seller. Buyers want the special deal as usually the house needs little work and the value would be below market.
I had 3 deals all with different results come to completion this past week.
This is the story of the first of 3:
The first was a house that was perfect for the buyer, had no inspection issues, but the buyer’s loan officer would not process the mortgage until they had a written commitment from the bank holding the shorted mortgage. This cost the buyer their house. When the buyer placed their offer into the bank, they expected to be moving in before Labor Day. One of the buying couple was still a college student intending to take a semester off to attend to the house. Had the loan been processed with submission of offer to the bank, the student would still have qualified for their deferment of their student loan and the mortgage would have been processed. The delay caused the buyer to no longer be considered an active student and failed to qualify for the mortgage.
Fortunately for the sellers there was a back up offer, pre-approved that moved right into the transaction and hopefully it will close soon
Waiting for a bank to clear the deal to close before process the mortgage may save a couple of dollars, but it can also lose the deal. Banks expect a quick close to the deal when it issues the release, just as in the purchase of an REO property.
If you want that short sale property don’t sit back and wait. Get the inspections done early, as there’s no point in waiting to the end and then finding out there are issues that are well beyond the cost one can cover. Let the bank that will issue the new mortgage wait for the closing as there is seldom a per diem penalty when first getting the loan.
This buyer was getting a perfect home, almost $40,000 below market value. In trying to save the $350 for the appraisal they lost the house.
Not All Short Sales have a Happy Ending
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Do you know somebody who is behind on their mortgage and doesn't know what to do? I may be able to help them, especially if they are facing foreclosure!
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Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott
Ed Silva RE/MAX Professionals, www.edwardsilva.com 203-206-0754
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