Here's a good one. We were just approved for a short sale in about three weeks, I have the listing. That in itself is news, but this goes further. We were accepted for a price LOWER than our contract and we must now submit an addendum REDUCING the sales price by about $25,000. What else can I say?
Toth Real Estate Group, Inc - Sunny Isles, FL
P.A.
What? That makes no sense. You would think lenders are losing enough money already. Are you sure they were not talking about the NET to them, and not the purchase price. Who is the Lender?
In that case increase your commission, you have negotiated this too well !!!!
Jun 30, 2008 05:50 AM
Keller Williams - Miramar, FL
CDPE, Short Sale Expert, 954-665-9449,
Yoana--Their net, Wells Fargo, is 132K. The thing is that they can't take more than market value, it's just weird. The worst part for me is that it is a second home and the Sellers will be hit with 25K more on their 1099. It just doesn't seem fair--does it?
Jun 30, 2008 07:10 AM
Toth Real Estate Group, Inc - Sunny Isles, FL
P.A.
Sidney,
WOW, not fair to the seller and the bank.... A great deal for the buyer.
I understand is a short sale, but if the seller is taking an additional hit for taxes on 25K can they request a 2nd appraisal to be paid by the lender since they are also losing the 25K?
Jun 30, 2008 07:27 AM
Keller Williams - Miramar, FL
CDPE, Short Sale Expert, 954-665-9449,
The LENDER sent out a second appraisal but since the first came back below asking price they will honor it. The thing is that no one is supposed to profit from a short sale. What happens to the extra 25K? The lender can't take it because it's above the BPO, the Seller can't take it because he still owes 100K. Hmmm! The Buyers appraisal came in at 165K.
Jun 30, 2008 07:33 AM
Century 21 - Anaheim, CA
North Orange County Real Estate
Sidney, maybe you had priced it above market value. Was there a cash out refi done on the home? If it is a purchase money, I don't see why the seller would have to pay the extra 25k if they can prove insolvency.
Aug 03, 2008 05:24 AM
Keller Williams - Miramar, FL
CDPE, Short Sale Expert, 954-665-9449,
JIM--The problem is that we were able to get a competative contract. The buyers were willing to pay the asking price but because it is a short sale the lender won't take more than the BPO. The $25,000 difference will affect the sellers because their 1099 will come back that much higher for next years taxes. It's not a deficiency, it's just a higher tax liability.
Aug 03, 2008 05:40 AM
Century 21 - Anaheim, CA
North Orange County Real Estate
Hi Sydney, that is the 1st I"ve heard about the lender taking less than contract price. The buyer surely benefits but not the seller in this situation. Did the seller ever refinance on the property?
Aug 03, 2008 04:52 PM
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate
I had to read that about 3 times. I can't believe a bank would lose any money, let alone insist on losing more. Why would they intentionally try to harm the sellers even more?
Aug 04, 2008 04:21 PM
Keller Williams - Miramar, FL
CDPE, Short Sale Expert, 954-665-9449,
LISA--It's just the rules of the game. They told us they can't agree to take more than the value of the property as set by the BPO or appraiser.
Aug 04, 2008 04:30 PM
Rainer
32,283
32,283
Sidney Jimenez
CDPE, Short Sale Expert, 954-665-9449,
Comments(9)