No Short Sale For You!!!!

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

Look out for the snakes!!!!I HATE strongly dislike having transactions fall apart at the last minute. Last Friday, I was supposed to close on one of my Poinciana Florida short sale properties. It was a pretty difficult deal that required almost 3 months of negotiating with Wells Fargo. 

After many days of going back forth on the negotiating of a promissory note we finally arrived at an agreement between Wells Fargo and the Seller and received the written "Short Sale Approval". All was right with the world!!! 

The next step was to make sure the Buyer was still on track by getting a closing date addendum signed. The Buyer signed. One of the reasons I wanted the Buyer to sign another addendum was to make sure they were still motivated to get this deal closed. We also had them place an additional escrow deposit which they did. 

Feeling pretty confident, that everything was a go, I ordered the pool clean up. The pool was a disgusting green and needed to be cleaned up prior to the appraisal being done. 

The pool is cleaned, the appraisal is good and closing is right around the corner. I can almost smell my TLW's check!!! 

Then, much to my surprise, the buyer decides to change lenders two weeks prior to closing!!! Holy crap!! Now I have to go back and get an extension on the Short Sale approval. Fortunately, I had a great loss mitigation negotiator and getting this extension was not an issue.

A few days later I get the updated approval letter from the new lender only to find out they had approved the Buyer for a USDA Rural Housing Loan. That's all well and good except........you can't use that loan program on a house with a pool!! I call the loan officer and point this out and he says "No problem I'll just switch it over to a FHA". Well OK then!!! Just don't forget to mention to the Buyer that he now needs additional funds to close. 

Reluctantly, I have to call my favorite negotiator and ask for another Short Sale extension. This angel grants it immediately and sends me over my second extension.

In the meantime, my Seller is served the "Final Summary Judgement" informing her that the sale date has been set for.......17 October. That's right....it's today. 

I'm sad to say that after getting everything sorted out with the Buyers loan and scheduling a closing for the 10th, the Buyer decided to NOT close. He got so fed up with the process that the day before closing he decided to walk!!! 

I tried everything I could to assist the Buyer's REALTOR® and mortgage broker with getting the Buyer back on track but nothing worked. The deal died. 

I contacted my favorite negotiator to see what my options were but her hands were tied. The Investor, FreddieMac, would not delay the auction without a new contract on the table. 

So, this morning, at around 10 a.m., my Seller lost her house at auction. 

Folks, working Short Sales can be frustrating. I win more than I lose but it still sucks not being able to win them all. I learned a lesson with this one.....if at all possible, have a back up contract. 

I am not yet an expert at Short Sales BUT I will be. Will you?

POINCIANA FLORIDA REAL ESTATE SHORT SALE INFORMATION

POINCIANA FLORIDA REAL ESTATE MARKET REPORTS

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

MORE INFO FROM BROKER BRYANT... THE SOURCE FOR POINCIANA REAL ESTATE

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The BIO for Bryant Tutas

 

 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Topic:
Real Estate Market Trends
Location:
Florida Osceola County Poinciana
Tags:
short sale
final summary judgement

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Rainmaker
314,256
Carol Culkin
Reece & Nichols - Leawood, KS
Overland Park

BB- I feel for you, I had a deal go south today too. I might be facing my first month without pay if I can't resurrect it. :( 

Oct 17, 2008 05:47 PM #29
Rainmaker
314,256
Carol Culkin
Reece & Nichols - Leawood, KS
Overland Park

By the way, that pool is the same color as TLW's toe!

Oct 17, 2008 05:47 PM #30
Ambassador
1,091,070
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

TLW: You're worried about a size 7?  Goodness..how short  tall are you? Okay...I'm just trying to justify why my height at 5'6" makes a big difference in why I am able to eat a bunch of brownies like you LOL!

BB: Three years????? Wow. 

Oct 17, 2008 05:48 PM #31
Rainer
340,913
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

I ache for your sellers. 

Oct 17, 2008 11:06 PM #32
Ambassador
589,525
Julie Chapman
DR Horton - Lakeland, FL
New Homes Sales Lakeland Florida

BB,

You are a professional with an admirable work ethic - it is frustrating that loss of control over the outcome of your hard work as well as the effect on your customer or client.

(I am a control freak and short sales make me insane.)

Oct 17, 2008 11:46 PM #33
Rainmaker
631,147
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

BB, I have yet to jump into the arena of short sales but planning to do so soon.  Thank you for the advice.

Oct 18, 2008 12:29 AM #34
Ambassador
261,096
Fran Gatti
RE/MAX Integrity - Medford, OR
Managing Principal Broker - RE/MAX Integrity

Short sales are the smelly armpit of real estate that's for sure.  It sounds like your bank was on board and they are usually the problem.  I'm sorry for your seller and I hope she realizes you did all you could do in this situation.  It looks as though the buyer had cold feet and was looking for an out.

Oct 18, 2008 10:26 AM #35
Rainmaker
526,117
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Bryant - What a disappointment!  I empathize... You did your best. Next!

Oct 18, 2008 11:21 AM #36
Rainer
195,279
Elizabeth Nieves
The Elizabeth Nieves Realty Group - Durham, NC
Bilingual Raleigh - Durham North Carolina Real Estate Team

That is horrible! I hate them too. I'm fighting right now to hold a commercial sale together...that should have been a piece of cake. It is sooooooooooo frustrating and nerve wracking. I know the sellers are heartbroken also. NEXT TIME! GBU!

Oct 18, 2008 02:30 PM #37
Rainmaker
889,662
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

BB - I haven't had a short sale yet, but I had better start learning about them, because I want to service my market area and the chances are that this will occur at some point.  I'm sorry to hear about the loss of your sale at the last moment.  How sad for your sellers and you. 

Oct 18, 2008 06:00 PM #38
Rainmaker
593,907
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate

BB,

I have a similar one right now going on 4 months because of the banks stupidity and loss of everything. Now we went to court and the attorney suing didn't show up which was great but that still doesn't mean they can't call it in tomorrow. Now we just lost two buyers. We got the verbal approval on Thursday. I rush to call the first buyers agent...he seemed like it was possible to get the buyer back but until we get the written approval we ain't doing squat. Meanwhile as of Friday...no answer...no buyer...no nothing.

Oct 19, 2008 01:06 AM #39
Rainmaker
1,142,260
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Hey guys. Thanks for stopping by. Short sales can certainly be a big pain in the rear end BUT as a listing broker I have no option except for to get better at them. They are a HUGE part of my market and I feel will become much more prevalent with the "bail out package" that was passed.

Plus there is a really good feeling that comes with helping a seller out that is in this position. Working short sales is very satisfying.

Now when I'm working with buyers I do not like short sales at all.Mainly because I don't have control over the transaction. So I certainly understand why buyer's agents do not want to show them. The solution of course is for me to price them low enough that they are too good to pass up AND to get a reputation of being able to get them approved.

Neal, You have to real careful that you have written approval PRIOR to letting the buying side know it'd been approved. I know from experience that the approval may come back with changes made from what was submitted. For example...closing costs contributions and commissions. 

Oct 19, 2008 05:44 AM #40
Ambassador
3,097,606
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Bryant:  This sucks!  It's not too often you get the approval from a bank only to have things fall apart on the buyers end.  Better luck next time.  And good for you for not letting this get you down.

Oct 20, 2008 03:55 AM #41
Rainer
41,106
Timothy Butterworth
Taking a break - Portland, OR

Wow! That really does suck. I have just started my First Short sale  and have be nervous about it from the first page. It began with working on the much needed package from the lender, surprisenly after getting all the signed paper work from the seller i was able to get the first round of paper work by 1pm today. That was just 4 hours of going back and forth with people and being put on hold. Luckily my office is the corporate office also and I have 2 principal brokers to assist me that both have been in the business over 30 years. I basically need my hand held for a time until i get a better understanding of these. We were working with other companies that did more of these but have found that we might as well start doing them ourself here.

Great to read your blogs agian Bryant.

Oct 20, 2008 08:34 AM #42
Ambassador
4,044,818
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

BB - Well there were some valuable lessons for all of us in your post. As they say, it ain't over til it's over, or one of them variations on the them. Much appreicate the learning but feel badly for you, your client, AND TLW!

Jeff

Oct 20, 2008 12:58 PM #43
Ambassador
2,880,350
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

BB- I am getting my first lesson in shorts sales currently.  Thanks for the story and I'm so sorry for you and your client.

Oct 20, 2008 04:11 PM #44
Ambassador
1,509,742
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

This seems to be happening all too often!  It's really sad that a buyer missed out on a great opportunity and that the seller's went into foreclosure :(

Oct 21, 2008 12:35 AM #45
Rainmaker
453,651
Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904

Oh Broker Bryant!   I am so sorry- I strongly dislike when we have done right and it still goes horribly wrong.  But as you said- you win more than you lose.  Your market is in serious trouble.  It is a little better in this part of Osceola county I am happy to say- but we still play "Beat the Bank" every so often.

Oct 21, 2008 02:54 AM #46
Ambassador
2,135,696
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

I've negotiated many short sales and everyone is different and it all depends on who you get at the bank from my experience. To date, I've only lost one to auction and I found out it was because the bank had an insurance policy and were never really planning to let it go to a short sale in the first place.

Todd Clark, Helping Families Home - www.IFoundYourNewHome.com

Oct 24, 2008 11:55 PM #47
Rainmaker
236,392
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

BB - Short sales are extremely challenging... even when they work out. 

Oct 30, 2008 01:03 PM #48
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