I recently closed the most satisfying Short Sale of my career this past Tuesday.
The couple who sold the property were in a difficult situation, they had been swindled by their mortgage company into borrowing way beyond their means and were conviced that they were “tapping into equity”, when in reality, they were submerging their house in bad debt.
I listed their house at fair market value, which is difficult to pin down because most markets in Maine and the US are declining. They owed close to $265,000 on the mortgage balance and the market value I came up with was $215,000. After a short period of marketing time I received a great offer of $190,000 and presented it to the Seller’s bank(lien holder).
I helped them produce a killer Hardship package and had the bank approve the Short Sale offer in 10 days!
We were smooth sailing, up until 2 days before closing when I received word that the Sellers had an outstanding credit card balance that was attached to the property through a Writ of Execution. My options were limited because we could not close without this lien being released, and the sellers simply could not pay the $6000 outstanding collection account.
So I went into Negotiation mode. I will never, EVER, give up and give in to a bank. I know the ins and outs of bank negotiation and presented the Bank an offer they couldn’t refuse. It was not easy, trust me.
We closed this deal with the bank paying the $6000 credit card lien, as well as the current 2010 tax bill of $3000 and also giving the seller’s $2500 in relocation expenses! It was my proudest moment in Short Sale negotiation, thus far. The sellers can now move on and rebuild their credit without the worry of the deficiency judgement coming back to haunt them.
They did the right thing. They called me.