I have just finished up my first successful short sale. Yeah! Several before this have gone down in flames for many reasons outside of my control. Termites, Attorneys, Second Mortgages, etc. You get the picture. This one has taken awhile but what a pleasure to work on.
My client is a first time buyer who came to me through a community Improvement project we have here locally. Credit repaired, FHA approved with a mortgage approval in his hands. In addition to helping the buyer repair their credit this program will lend the buyer up to $5,000.00 towards their closing costs. These funds need not be repaid if the buyer owns their home for 5 years.
Let's call the buyer Chuck. Chuck is somewhat new to the country so at first we had some trouble with conversation but that left soon on. After a few "get to know" meetings he felt good enough to head on out and look for his new home. After several day trips out I said to Chuck that it was time to sit down and review what homes we had looked at. We did and narrowed the list down to three homes and set a date to pick his home. "Brian, Chuck said. Today we will pick a home". Chuck was true to his word. He found his perfect home.
Now the real work begins. Chuck chose the home that was subject to short sale approval. After cautioning Chuck about the uncertainty and extended timing of a short sale we wrote an agreement of sale that was accepted by the seller and submitted to the bank for approval. I would like to point out that listing agent was a complete pro throughout the transaction. Let's call him Calvin. Calvin and I rolled up our sleeves and worked to get our jobs done for our clients. Tick, tick, tick. The days passed and all the while we received phone call of frustration from our clients on why there was no answer. Cool heads and calm minds prevailed. I explained how the process worked and also explained to Chuck about the dynamics of what a short sale is and how it has affected the Mortgage lenders all around the country.
After months of waiting, Calvin called me with the good news of an approval. But with approval came even more challenges. The agreement of sale was written in such a way that home inspections would not be done until we received the bank's acceptance of the agreement of sale. Why spend my client's money on a home inspection for a home he might not get? Home inspection and pest inspection were ordered and a whole new set of obstacles arose from the home inspection. The credit repair program uses their own home inspectors that must be qualified for their program. Any repairs called for by the inspector MUST be done for the buyer at the seller's expense. If repairs are not completed the community improvement project will not lend the buyer the money they need for closing.
Well of course there were repairs needed. But this was a short sale. "The seller has no money to pay for repairs", Calvin said. With some restructuring of the terms of the agreement of sale we were able to free up some funds to allow for the repairs to be done. The home was re-inspected and we were off to settlement.
Chuck is now in his new home. Another first time buyer reached his goal. My first short sale completed. Smiles everywhere.
The simple things in life.