Another Closed Short Sale

This one was a little different.  This sale started normal enough with a listing referral from an agent out of state looking to refer a client who needed help getting an investment property sold.  The big problem with this listing was that it was in a condo neighborhood where no previous sales had taken place.  I did some research came up with a sales price that was unfortunately significantly below the original price that the owner had paid. 

I started the short sale process with the bank by providing them all the necessary documentation and within a couple of weeks of listing the property we had a contract on it.  I sent the bank the additonal forms, huds and documentation that they required and waited for the BPO to be ordered. 

Then the fun began…

This property was at the time of listing, vacant.  But the property manager who was involved with leasing the unit decided to put a tenant into the property even though the owners had told them the mortgage was not being paid, the property was headed to foreclosure and they were trying to sell it as a short sale.  The BPO was completed the bank started reviewing the file and after 2 months the buyer decided that it was taking too long, the values were continuing to drop and they were no longer interested in purchasing the property.

So we go back on the market to find another buyer.  This time we get an offer for 25% less than the first offer and we send everything back to the bank for new approvals.   We wait another month and finally get the negotiator to approve the file but the buyer again becomes concerned with the rental contract this time and decides that they are not willing to take on the previous managers lease and they walk away from the deal.  Since we now have an approval from the lender I tell my seller that we should be able to move this property forward quickly.

Within a week I get another buyer who is willing to pay cash and close quickly.  I send the contract to the bank for a third time to get them to approve it.  The PMI company approves it in 1 day, but the investor is dragging their feet for over a week to get the approval done.  After daily conversations with the negotiator the investor finally approves the loan but only gives us 1 day to close the property.  Luckily when I called the buyer they were willing to make arrangements to come to the title company that same day to close the property. 

My title company played a significant role in making sure this deal got completed in time.  Having all of the documents ready to go and getting all of the paperwork to an out of state seller made the deal come together.  Finally after 3 buyers, 4 months and too many phone calls to count I was able to get the seller out of foreclosure with no penalties from the lender and no further collections.