New Experience On Short Sales

Managing Real Estate Broker with Allison James Estates and Homes

We have been working a short sale with a national lender that had both the 1st mortgage and the 2nd mortgage.  We have been working with one negotiator and they have been receiving information from us and sending information to us so we were under the impression when we received the approval on the 1st that the 2nd would be soon to follow.  When reviewing the approval letter we discovered that they had sold the second to another lender during the time we were negotiating the sale.  I don't know right now if the company that purchased the 2nd knew that it was in a short sale negotiation or not.  We are now in negotiation with a new 2nd mortgage holder.  We will be trying to get them to accept $2,500 for a note they just took over valued at $60,000.  Ouch!  The property went down from about $350,000 to about $160,000 in the last 3 years.  There has to be a lot more than meets the eye on something like this.  ]

Share your "short sale" experience.  It is appreciated.


David Wiggins  CRS e-PRO

Executive Member REOMasters Network

Comments (3)

Lori Mode
The Mode Real Estate Group - Elk Grove, CA
Real Estate Made Simple

David - this happened to us recently also.  Both loans were with Bank of America and after getting approval we found out that the 2nd loan was sold, just like yours.  We had to start our negotiations with the 2nd all over took about another 30-40 days, but we finally got both negotiated and the escrow closed.  Hang in there......

Oct 26, 2009 05:40 PM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

Seems this is happening more and more -- all the best -- short sales are anything but short.

Oct 26, 2009 07:01 PM
Nancy Deichman
Re/Max Premier Realty, Inc. - Ocala, FL

we are seeing this too. How about this scenario? The second approves the payout first then the first approves the short sale with the payout, then the second is sold and they don't approve the payout from the first. They don't care about the approval letter. It expired while we were waiting for the first.

Its insane.

Oct 26, 2009 09:19 PM