SUBJECT PROPERTY - SINGLE FAMILY HOME, PORT ST. LUCIE, FLORIDA
DEBT - 1ST MORTGAGE $231,200. 2ND MORTGAGE - $57,800.
PURCHASED - AUGUST, 2006 PURCHASE PRICE - $289,000
LENDER - OPTION ONE FOR BOTH LOANS
Got the listing back in May 2007. Owners were in default by 2 months already. Bank was open to a short sale or so they said!
Rejected 2 offers within the first 4 months at $235,000 and $210,000.
Jan 2008 received an offer for $160k. Thank goodness the BPO agent was realistic. BPO came in at $162k. After much debate with a very inexperienced mitigator I got them to accept the offer. Buyer wanted 4% back at closing as per VA guidelines. After explaining to the mitigator what this meant he finally approved it.
Reduced our commission to 4% - bummer but just wanted to get the deal done.
One week before closing a UCC judgment and a City code violation appear on title - back to the negotiation table. Finally after many times of banging my head on the wall - still got the bruises, got the judgment negotiated but had to pay the code violation. Not time left to get in front of the special master at this stage of the game.
So finally after months of negotiation Option One received a payoff of $131,000 for both loans.
Moral of the story for lenders - Take what you can get at the start of the short sale process. They would have netted at least another $50k if they had taken the first offer!
Short Sales - Don't you just love them!!
P.S. - The lender never filed a pre-foreclosure action against this property.
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