Shorts sales and scrambling... seem to go "hand in hand"
Here a story of what a seller should not do!
Months ago, I listed a Mother/Daughter property where the sellers were separated and getting divorce. The husband's business was also having difficulties.
I heard that agent in our company, had a buyer with a specific need to have an in-law suite. I encouraged that agent to have her buyers take a look at my listing.
The property was a perfect-match, however it was priced over what the buyers were willing to pay (of course!). Again, through my encouragement to the other agent, they submitted an offer.
In reviewing the offer & the current market conditions with the sellers, we determined that the buyer's maximum number would result in a short sale. All parties quickly became aware of this.
I suggested that the sellers speak to their real estate attorney, who then encouraged them to go ahead accept the offer and pursue a short sale. The buyers were on board also...
The scrambling begins.....we immediately contacted the bank and got all the preliminary approvals for the short sale to submit the offer.
After about 30 days, we got the approval from the bank.
It was all going so well:
- home inspection
- appraisal
- mortgage commitment
- survey
- Title
The closing was scheduled!
A few days before the closing I received a frantic call from the buyer's agent; the buyer's were just notified by their attorney that there is a hold on the closing.
The scrambling continues....I immediately called the seller's attorney who explained; the sellers were contacted by their divorce attorneys and needed to immediately sign the paperwork and get divorced. (There was some sort of timing issue).
Neither of them thought about contacting their Real Estate attorney, so now that they are no longer married, all the bank paperwork, title paperwork, settlements statements, etc. needed to be re-done.
"BUT WAIT, THERE'S MORE", their Real Estate attorney tells me....
After they signed all of their divorce papers, the divorce attorney told Mr. Seller to go ahead and immediately file for bankruptcy, (which there happened to be an office just a few doors down).
So, Mr. Seller took his attorney's advice and went ahead to filed a Petition for Bankruptcy.
This resulted in the closing to go on "hold"; (an automatic stay that prevents the conveying of title).
After an afternoon of us all scrambling, their real estate attorney suggested that Mr. Seller needs to go back and file to dismiss the bankruptcy.
Miraculously, this only caused a 3 week delay.
The dismissal was granted and a new closing date was established.
And for scramble finale; as the buyer's agent was doing the "final walk-through". The key from the lockbox will not work.
It appears that the seller decided to change the lock a week earlier to prevent a prior renter from entering the building. He neglected to tell anyone that he did that. We then needed to quickly locate a key for the final walk-through, so that the buyer can go ahead and close.
So, when selling a property:
Do not get divorced
Do not file for bankruptcy
Do not change the locks without telling the listing agent
Honestly, if I'm going to scramble, I prefer it to be my eggs!!!
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Toula N. Rosebrock (of Diane Turton, Realtors) - Broker / Sales Associate - Specializing in all of Ocean County - Lacey Township Real Estate, Forked River / Lanoka Harbor
Unique Name ... Unique Agent ... Unique Service!
Websites: www.Toula.org www.ToulaRosebrock.com
& www.OceanCountyNJRealEstateSales.com
Waterfront Properties, Single Family Homes, Multi Family Homes, Condos, Townhomes, Adult Communities, Vacant Land, Commercial Properties, 1031 Exchanges
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