Just when you swore up and down that you would never do another short sale because the lack of cooperation from banks and the amount of time and effort involved, you are told that this is going to be a huge niche and you need to figure it out. Right now the percentage of short sales that actually close is 10%-20% depending on the area, I am not kidding. (Trulia Voices)
So I'm keeping an open mind on this and putting together short sale packages to make it easier for the multi-headed processors at the banks.
So here's two wrinkles that we came across that really surprised us: (I hope my English teacher doesn't read this, I just went from second person to first person to third person.)
*The bank that had the second mortgages agreed to a certain sales price, then came back before closing and informed us and the seller that they are not releasing him from his obligation, about $20,000. If an agent negotiates with the second, and I'm not sure that the agent should always be the one negotiating, the premise is that if the house goes to foreclosure, they will get nothing, so they need to accepts X amount and release the client from the balance. Unless this is in writing, the second seems to be able to do this trick at the end. The seller could refuse to sign this, of course.
*The law firm that reviewed the files for the first mortgage caused numerous delays that caused the close date to be delayed, then charged $1,200 more because of the delay. Neat trick..
So two things that we hadn't come across before, if you know others, please share.
Comments(3)