We got it, we got it, we got it. We finally closed this short sale transaction where the only short thing was the Short sale title.
It started in the fall of last year. The Seller reserved the condo unit in 2003 at so called pre-construction price, closed in 2005 at completion, The intention was to move to Daytona. A young PhD, she was doing marketing for real estate companies advertising in the Eastern Europe, had good success with the companies from Arab Emirates, the money were not an object, life was full of promise. American developers were flirting with the idea of expanding to the Eastern Europe market, and it looked very lucrative.
She needed money to expand the business in Eastern Europe, and the easiets way was to refinance with cash-out, as there was so much equity in hte units as the prices on the resale were already $150K over the initial prices by the developer.
Her grandmother is diagnosed with cancer. Before she can go, she needs someone to help her, someone to take care of her. She pays. Then she goes there, and pays and pays and pays. You see, medical care in the Ukraine is free, but if you want even minimal care, you pay, and pay a lot. But even money can't cure cancer...
Her dad is a strong man, runs 10 km every morning. He suffers severe pain, is rushed to the Hospital. Undergoes a kidney surgery. In Moscow, Russia, medical care is free, but if you want to live, it usually isn't. By te way, money is not a guarantee of good care, it is simply a guarantee of some care. The surgery is with complications, he is taken there second time, and then 6 months at home, recuperating... His "beheaded" company fares poorly while he is in the Hospital. He returns to nothing.
So here she is. Money spent, meanwhile the real estate is no longer a glamorous money ridden industry. Developers back out of advertising contracts. And by the fall of 2007 when she used her HELOC to help pay the mortgage, she got depressed and is willing to let it go.
We helped her to find a tenant for the unit, so she called that she is not able to make a payment and will go to foreclosure. I called the tenant and asked him whether he would be interested in getting the unit for a terrific price. He was ecstatic. Then I call Richard Zaretsky, a terrific real estate attorney from Boca Raton, who specializes on short sales. Explained to him the situation. He said he would take it. Then we are talking to the Seller, xplaining her the short sale process, and she agreed to give it a try.
Preparing the documents was not easy, language barrier, complete loss how to fill out a Personal Financial Statement, can't find some documents... so it takes us some time to put the package together. The package is provided by Richard Zaretsky's office. We send them the package. Then there is a barrage of demands for Susan and Tammy from Richard's office. They need this, they need that... It took weeks to prepare the package the way they wanted. Then they call and ask me about every small thing they see in the package. What is this and what is that. Done.
Then they submit to the Lender.
We have the Buyer, we have a letter from the Lender on financing the Buyer, everything is fine. Everybody waits. I am getting e-mails on the progress from Richard's office, once the negotiations start there is another lady talking to us from Richard's office - Aurora. The Seller asks us about the progress, but is not bothering us. She does not believe this would work. The buyer time from time asks, but he is not nervous, he lives in this unit now and he wants to stay there.
Then there is a scurry of activity, some additional information about the seller, and then we get the message that we need to close by the end of July. We have 3 weeks, so back to business. And here the surprises start falling from everywhere. The Lender that gave the letter is no longer in business, and this was a huge company. The Buyer was trying to buy as Foreign National with very significant down. But 6 months later she already has a SS# and a green card. No Foreign National. But there is no work experience in this country, and no credit. Husband has a few blemishes on his credit. The mortgage broker is eager to find another Lender, but the programs that were abundant before, are no longer there. We get "no" again and again.
OK, let's get a private mortgage. The broker goes from one Lender to another, the deposit increases to 35%, then 40% then 45%. Interest rate stays the same, but each of them comes with prepayment penalty and points upfront. The Buyer does not want to start paying 2.5 times more than he is comfortably paying in rent now... We are at an impasse. Time is ticking and is out and we still do not have anything on paper, that the parties could agree to.
The buyer is turning to his extended family trying to borrow cash. By contract we have 10 extension is we can't close on time, so we are OK if we close on August 11. Friday August 8 the mortgage broker gives up. The Buyer decides to go ahead with cash. Sending the info to Richard Zaretsky. Now it goes to the closing agent Bonnie. She shoots me an e-mail that she plans to close on the 18th, and this would give us ample time to prepare for the closing.
And then I start getting copies of e-mails from Richard to the negotiator, back and forth. And this was not a good sign. The negotiator basically told us that the deal is not longer in the system, we are out, and we have to start all over again. There was a quite heated exchange between Richard Zaretsky and the negotiator, then Richard was going to higher authorities there to have someone to override expired status of the transaction.
We were on the nerves. Every hour, every minute... OK, we win. They reinstate the deal and we have to close on August 21, and, of course, there will be not more chances. Hey, we are ready. The paperwork is done, the money is Buyer's attorney escrow, what can happen? Nothing.
Well... nearly nothing. Tropical storm Fay comes and the banks are closed August 20 & 21. The Buyer's attorney can't wire the money to a title company account.
Anyway, it is over. We did it. Thanks everyone, thanks Richard and your terrific team.
Jon Zolsky, your Daytona Beach connection
short sales, homes, vacation homes, vacation condos, condos,
Comments(0)