I wrote the listing contract September 7, 2009 and it closed yesterday September 3,2010. There were a few obstacles in our way, but with a great team effort, it got done!! Here are some of the highlights:
Listed September 7,2009: Not a great time to be putting a short sale on because if you remember at this point the deadline for the first time home buyer credit was the end of November. Not enough time to attract the first time market.
Accepted offer December 31. 2009: After the tax credit was extended to the end of April things picked up a bit. We had two other offers but when push came to shove they didn't want to commit to a 90 day period to receive bank approval.
Signed Purchase and Sale on January 11. 2010: We had a serious buyer! Inspection done and P&S signed with a performance date of April 30th. Just need bank approval now!
February: Everything seemed to be progressing. BPO was done and negotiator was telling us we would have an answer soon!
Buyer extended through June: We agreed to extend through June as it seemed clear towards the last week of April that we would not have an answer by the 30th. Things seemed to hit a standstill????
June Surprise: The first week of June we were advised that FDIC had taken over the bank and all paperwork would need to be reviewed by them before a decision could be made. Ouch! The buyer wanted the first time tax credit and at this time had to pass papers by the end of June.
Tax Credit Closing time extended until end of September! :The buyer new that he was getting a good deal and now that he had more time we extended again until the end of July. The process started over with FDIC and things were moving ok.
Offer is being reviewed for approval: Mid July we were told the offer was in the hands of the person that can give the ok and to be prepared for a quick closing. Great News!! To be safe we extended the contract again until the end of August. By now my Sellers have moved to Arizona and had their son staying at the property to keep it up.
Late July Surprise! : I can't make this stuff up people! The final week of July we received notice from FDIC that they had sold the loan to an investor. The would let us know who bought after August 1st. We were assured that the buyer would not extend past the end of August and things didn't look good!
All paperwork was submitted to new bank: Fortunately, this bank seemed to know what they were buying because we recieved the approval about the third week of August. The closing date was set for September 3rd.
It was a long and stressful transaction but in the end the Seller was relieved to have the burden of a foreclosure off the credit history and the Seller is not only still eligible for the tax credit but got the added bonus of interest rates in the low 4's as opposed to the low 5's in April.
I am not new to short sales and they all have their own little problems, but this one has to be the most interesting one that I have ever done. Having a good team that includes a professional negotiator with exceptional communication skills. proved to be the difference.
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