Another typical short sale story(follow up)

Real Estate Broker/Owner with Al Phillips (Realty Executives Stoney Creek)

Well, if you read my last Blog, you know my feeling on short sales.  That particular short sale I was discussing is now about ready to close.  Needless to say, we have one last problem now.  We started this deal so long ago that the purchase price of $55,000 was a steal.  Now, with mortgage approval and seller's first and second bank approval, all we need is a favorable appraisal.  However, appraisal is no guarantee in our Michigan market which is in a free fall.  Chances are the appraisal will be too low and we will have to start negotiating with the banks again to agree to a lower price.

The first mortgage holder did two BPO's which came in at $40,000.  The purchase price is $55,000.  This is what happens when it takes six month's to close a short sale in Michigan.   One head ache creates another.   Solve one head ache and you are surely going to have another.

I have approximately 25 listings of which at least 20 of them are going to be short sales. 



Comments (1)

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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Sep 11, 2016 12:13 AM