This is not my typical light and fluffy fun posts that I enjoy writing. You may realize my week was not anything near fluff and fun. In fact it was a week of frustration, and well, throwing in the towel when I really didn't want to.
This post is really more of a few questions posed to those of you with expertise in the area of short sales.
The background: (while much more involved I tried to keep it short)
I was very recently working on a short sale for a home owner in Grand Rapids Michigan. We were in the middle of negotiating a rather good offer for the bank. It was actually accepted by the bank but not quite through some negotiating on inspections. In order to make a long story a shorter one, I will just say that there was negligence on the banks negotiator in loss and mitigation, where the ball was completely dropped and the buyer ended up walking. After numerous attempts to contact her, I resorted to trying to contact her supervisor and getting the run around each time for my efforts there. Not because they did not agree with me but because the personal system is inept. Everytime I would finally get an actual person to speak to I would keep getting transfered to the next person on the chain of command (and on and on) until the last one would say that a supervisor would contact me in 24 - 48 hrs. That was over 2 weeks ago and several tries in between with the same response.
Just today, my homeowner got through to someone there and as she explained our frustration she was told that she would no longer be able to do a short sale on her home because as of Mar. 28 the bank had changed their policy in regards to a part of the policy that affected her situation. The offers that we submitted (4 different offers) were submitted well before that date. They told her that her only options were to do a deed in lieu or to let it fall into foreclosure. She (owner) and I are so frustrated because we both worked hard to bring them what they needed in the way of an offer, to nearly satisfy the debt. She also wanted to try to make good and protect her credit the best she could. She even agreed to pay off the 2nd that she had with them of 12,000. I can not believe that they can not see how much they will lose by not getting there act together and following through with us on a short sale.
My questions to those of you who know the game is this:
1. The bank told my client it would be better for her credit if she did a deed in lieu over a foreclosure. Is this true? How does that all happen and will they go after her later for what was outstanding?
2. Do any of you see any other alternative for my client? She has a first and second and was willing to sign a 12,000 promisarry note on the second with the short sale deal we put together. Now I do not know what she should offer tham if anything?
3. If the property does go into foreclosure is there a good way for me to pursue getting the listing? (Why would I want it you ask? because I have a growing list of buyers who want me to show it to them). I don't typically pursue these kinds of properties so I do not know the ropes of how to try to obtain a specific listing. I am just thinking that if I could at least earn something from this thing after all the work I put into it
I appreciate your help. I am frustrated with this one.
Five Star Real Estate
Grand Rapids Michigan