A Year Late and $60,000 Short... Or How To Try To Close A Short Sale in Only 548 Days!

By
Real Estate Agent with I.V.P.G. - Inland Valley Professional Group

Hi All,

Friday should have been a great day.  It really should have been.  Not just for me but for my client and also for another agent and their client's as well.  But it wasn't and here's why.  I took a listing for a condo in Ontario, CA in February 2008.  It was, is, and remains a Short Sale. And it is getting "shorter" by the minute. 

A brief recap for those who don't remember my speaking about this transaction before.  (And really, why would you since I started babbling about it when Barack Obama was still just a Senator from Chicago and the Octomom only had six kids.) I listed this home in February 2008, got our first offer in March, '08, the lender got an appraisal that wasn't worth the ink it was printed with let alone the paper it was written on which killed that deal.  Then, we got another offer in April '08 which was scuttled by the lender taking 6 months to respond (after bringing the old appraisal up again and making me pay for a new BPO, which I of course did despite the fact that it turned out they had done a BPO of their own but didn't remember it) so we lost 'um. 

We next received an offer which really was low at the time (but higher than the current value is now by some $40K) so they didn't respond... We then received another offer identical to the second offer which we again... wait for it... wait for it... Lost because the lender again took to long to respond. Bringing us up to date... err or rather to March '09 when we received our most recent offer. 

We should have been good to go here... astonishingly it was the highest valued offer to date and the buyer's said they were in it for the long haul... A slam dunk, right?  Well, the lender again took their own sweet time to respond and the value has continued to descend (shocking, I know), in fact it has deflated to the point that when the bank got yet another BPO done it came in at $147,500.  And the buyer's appraisal came in at that pricepoint as well. 

So, I dutifully submitted the revised HUD 1 and we were off to the races yet again.  That was back in May and today we FINALLY got approval for the sale.  But, here's the kicker, the approval is for the offer submitted on behalf of a different and long gone buyer ONE YEAR AGO!   (And we wonder why we are in the financial mess we are in... but as usual, I digress)

I am pretty much at my wits end and would consider pulling my hair out strand by strand, but I have a whole lot of hair and I don't have that much time so... I got on the phone and called the negotiator to let her know about the little "problem" we were now facing, namely that the payoff amount (which was accurate way back when) was $40,000 over the current market value and it was based upon the WRONG DANGED HUD1!

I know they are busy, I know their desks are piled higher than straw in the story Rumplestiltskin, and I know that they have to serve many masters, but I really don't think it is asking too much to read something like the  date on the top of a document now and then.  My negotiator couldn't have been nicer (helpfully unhelpful is how I have always described them :-) and she said she was training new people and thought they might be getting the files messed up... Um... Ya think?  Geez, I even spoke... personally spoke, to one of her assistants before the offending document was issued and we went over the details of the deal to make sure they had all that they needed.  Lot of good that did, I should have just talked to my cat about the deal, it would have been about as useful and a whole lot more fulfilling. 

I shall keep you posted as to the outcome here.  I tend to believe that Realtor is a synonym for optimist and that is what I am to the core so I still have faith, hope and and undying need to believe that it will all work out in the end.  The entire kit and caboodle has been tossed back into the hopper and we are awaiting the result.  This should be interesting to say the least...

Take care all, help lots of people and have a wonderful day!

Tisza

Comments (13)

Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Sounds like Countrywide or WAMU. The problem I have with short sale listings in your area is that the property depreciates faster than they get back to us.

Jul 09, 2009 04:35 PM
Tisza Major-Posner
I.V.P.G. - Inland Valley Professional Group - Claremont, CA
DRE#01784679

Hi Amiri,

Thanks for stopping by... Shockingly this is neither of the usual suspects, it is National City Mortgage and to their credit, or rather to the credit of the negotiator I have been working with, at least they have given me the opportunity to try to find yet another buyer each and every time we've been scuttled by their policies and procedures.


Take care and have a great day!

Tisza

Jul 09, 2009 04:46 PM
Michelle DeRepentigny
Success Realty - Athens, GA
Broker Athens, GA

:) Keep up the faith!  I have successfully closed 3 so far this year.  Shortest time to date 48 days, longest 93.  On the other hand I had one last that I went through 3 different offers (buyers kept walking due to no responses in over 60 days), that finally foreclosed and was bought by an investor on the courthouse steps for $12000 UNDER my lowest net offer...really made me sick! 

 

Jul 09, 2009 04:49 PM
Tisza Major-Posner
I.V.P.G. - Inland Valley Professional Group - Claremont, CA
DRE#01784679

Hi Michelle,

I so hear you there... I don't actually hold the record in my office for the Short Sale of longest duration, that belongs to another gal who had a deal that garnered a foot high stack of offers and has lasted for over three years thus far.  I am sorry but that is wrong on ever possible level. 


Good to hear from you.  Have a great day!

Tisza

Jul 09, 2009 04:55 PM
Ralph Gorgoglione
Maui Life Homes / Metro Life Homes - Kihei, HI
Hawaii and California Real Estate (310) 497-9407

Oh, my God.

And I thought my short sale from December was the world's longest.

I will respectfully pass the trophy on to you..............

Jul 09, 2009 06:09 PM
Cameron Novak
The Homefinding Center - Corona, CA
Featured Corona Real Estate Agent Team

Waiting definitely doesn't get short sales closed.  If you don't know who to call and how to speak to those you call, you'll be getting nowhere fast... you might even be waiting a year or more for any results (those that the bank creates).

If you're proactive, have the expertise and negotiation experience with the lienholders of note, and the support staff to keep in constant contact... you'll do well with short pay approvals.

Good luck

Jul 09, 2009 07:35 PM
Tisza Major-Posner
I.V.P.G. - Inland Valley Professional Group - Claremont, CA
DRE#01784679

Hi All,


Ralph - Tenacity, among many others, is my middle name :-)

Cameron - I agree, and I do have all of the above which is why we are where we are now and not six or more months past the foreclosure sale of this home.  I think the really hard part here is that both sides of the transaction, agent and lender, need to understand each others needs and be working toward a common goal instead of spending so much time at cross purposes.  I am very proud of being able to say that as of this date, I haven't lost one yet and I won't be starting too anytime soon. Continued good luck to you as well.

Thank you both for stopping by.

Take care, help lots of people and have a wonderful day!

Tisza

 

Jul 09, 2009 07:45 PM
Ann Allen Hoover
RE/MAX Advantage South - Hoover, AL
CDPE SRES ASP e-PRO Realtor - Homes for Sale - AL

Wow Tisza, what a story!  I haven't experienced anything like that (thankfully).  I'll be interested to hear the next chapter in this one.

Have a great weekend!

Jul 10, 2009 02:44 AM
Tisza Major-Posner
I.V.P.G. - Inland Valley Professional Group - Claremont, CA
DRE#01784679

Hi Ann,


Stay tuned... I have an update forthcoming.  Good to hear from you, by the way.  I hope you have been nice and busy.

Take care, help lots of people and have a wonderful day!

Tisza

Jul 10, 2009 02:59 PM
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Tisza- There is no one that can express in words the frustrations and realities of this business we call "real estate."   I wish this blog had been featured!

Jul 31, 2009 02:39 PM
David Salvato
David Home Inspection Service Home Inspector San Bernardino - Los Angeles, CA

Hi Tisza this was a great post. Nice to see something new and informative. Hope to work with you someday!

David.

David Home Inspections

Sep 08, 2009 09:35 AM
Dave Roberts
Healdsburg Sotheby's International Realty - Healdsburg, CA

Very funny post. I can see why your bio includes work as a stand-up comedian. Just FYI, I have two guys chasing me for AR points in Sonoma County and they are relentless. You're the next person ahead of me in Cali, so like it or not, I'm hard at work challenging you for spot #176. Probably not a contest you were aware of, but since you were the first woman to bounce a signal off the moon, you're probably not feeling threatened. Good.

Nov 25, 2009 10:02 AM
Denise OnullDell
Santa Clarita Mobile Notary - Santa Clarita, CA
Mobile Notary Public/Real Estate Agent

Great post Tisza!  I am a fairly new agent and I just don't understand the whole thing with short sales. 

I'm on the other end where I have a buyer who has overbid on two different properties which have been sitting empty for at least 6 months.  No reply.

There were even cash offers on the same two properties from another investor.  I simply don't understand.  Maybe someone can explain it to me.

Like you said, they're desks are "piled high" with paperwork, but what is taking so long?  Why are they dragging their feet?  Especially with "all cash offers" over the listing price?

 

Feb 05, 2010 04:56 PM