All in all, this was a fairly smooth transaction, even though it took a little longer than I would have liked.
We were able to price the home aggressively and get a contract within the first 2 weeks.
I was able to email all documentation, but it still took SunTrust a while to get everything together, and there was a slight twist. This was an investment property, so Fannie Mae expected my seller to contribute funds to approve the short sale. We offered 4k cash at closing for a full waiver of the deficiency on both liens. They countered back asking my seller to sign a 40k promissory note.....and would not budge due to his high income. At that point, I offered up a $200 contribution from the seller for a lien release only on both mortgages, which means Fannie Mae reserved the right to sue for the deficiency. This offer was accepted. Approved short sale in just under 90 days.
Here's where it gets good - we got the approval letters, and not only were the liens released, but, amazingly, the deficiency was also waived. I can't make this stuff up.
The numbers -
Sale price - $209,000
1st lien balance - $315,000
Closing costs allowed - $17,000
Net to 1st lienholder - $192,000
Debt Forgiven - $123,000
2nd lien balance - $52,000
Amount accepted for full forgiveness - $3100
Debt forgiven - $48,900
Total debt forgiven - $171,900
Patrick
Need to sell your home?
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2011 AND 2012 Connecticut Magazine 5 star Real Estate Agent award winner!
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