Miracles can and do happen -
Jeff called this one a Miracle!
Here were just a few of the obstacles in the path of
Closing on the Sale of a Home that involved the
Lenders Approval of a Short Sale....
- An overwhelmed Processor who had over 100 files on his desk of Homes nationwide facing short sales or foreclosure....he also mentioned that other processors were burdened to the point that if and when he took his vacation, NO ONE WAS AVAILABLE to cover the files on his desk, they would sit for the week to 10 days of his absence.
- A never ending ' Black Hole" of paperwork getting lost in the system. We must have faxed over to the Lender the Purchase Agreement, Sellers Hardship Letter and other various documents repeatedly ad nauseam, (they kept saying "we are missing this, or missing that) - of course our faxed confirmation receipts meant nothing :)
- Last minute LENDER change in requirements to Close the Deal. A Promissory Note to be signed the day of closing by the Seller - but - the Lender refused to fax over a copy of the TERMS and CONDITIONS of the Note for attorney review ahead of time! The Seller was just expected to show up Day of Closing and blindly agree to sign documents which may eventually garnish his future income for a home he no longer owned ????
After this last straw....the deal was off. But what happened next, brought everyone back to the table!
- The Buyer's Agent wrote to the Local Legislator explaining the above situation: That a future VOTER in his district (who would prevent another foreclosure in town by buying this home), AND a current constituent in his district (the seller of the home) was being denied advance review of documents necessary to successfully complete this short sale.
- The Buyer's personal bank accounts happened to be with the exact same lender that dealt with the short sale:) He immediately notified this Lender why he wanted to change banking institutions and no longer do any business with them!
- Jeff called the Media :)
- Attorneys were consulted in regard to exploring other possiblities. Apparently there are suits being filed against Lenders for failure to proceed with short sales, but instead proceeding with MORE costly legal foreclosure proceedings that waste precious resources by clogging up our court systems!
Results = On a SATURDAY afternoon 3 weeks later, Jeff received a phone call from an EXECUTIVE officer of this Lending Institution that they would like to see this deal happen! He assured Jeff the Deal Would CLOSE this time and Miraculously ...there would be no need for the Seller to sign any Promissory Note!
This is just one in a series of Posts For Localism By Jeff & Grace Safrin, F.C. Tucker Advantage Realty, Serving Northwest Indiana...on HOMES SOLD IN A MARKET THAT's NOT SUPPOSED TO BE GOOD....
Other Posts in this series are:
http://activerain.com/blogsview/569414/Our-Sellers-Become-Our
http://activerain.com/blogsview/530308/Safrin-s-Found-The
http://activerain.com/blogsview/529206/Listed-AND-Sold-By
http://activerain.com/blogsview/503291/Cash-Buyers-Are-Coming
http://activerain.com/blogsview/489526/Valparaiso-IN-First-Time
http://activerain.com/blogsview/458373/Reverse-Offers-in-Real
http://activerain.com/blogsview/441172/Who-is-NEXT-Referrals
http://activerain.com/blogsview/439592/1st-BORN-2nd-Wife
http://activerain.com/blogsview/421935/Tri-Omino-Effect-on
http://activerain.com/blogsview/421330/IN-A-MARKET-THAT
http://activerain.com/blogsview/452527/A-Step-on-the
Jeff & Grace Safrin REALTORS - "Spouses Selling Houses' TM
F.C. Tucker Advantage Realty
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Jeff & Grace Safrin, Broker / Owners
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Yes they can be a miracle when and if they finally do close. We as lenders as well as Realtors know how frustrating this can be for all.
Good Friday afternoon,
We just closed a short after almost 5 months ! Interesting to hear about the lenders being sued for dragging their feet !
They are getting more difficult than they were even 6 months ago Laura - some outside Blogs even speculate that this is a way to control inventory by lenders - even a backdoor into Real estate ?????
I hate to think there is any truth to that theory.
For the PEOPLE involved - the Human factor of keeping neighborhood values from dropping by putting another family in the home....we're glad this one worked out since 4 of the 5 parties involved (Buyer,Buyers Agent,Seller, Sellers Agent) persisted !
and the party with control allowed it.
Thanks for taking time to stop by and share your thoughts!
Sincerely,
Grace
Wow Bill - we thought 13 weeks was long LOL the one we did before this took 9 weeks -they are getting more difficult to close???
There are case on file in the courts in Indy (much bigger city than where this home was though).
Why tie up a Judge and our court system ?- Pay Legal fees to retain a law firm to handle the foreclosure - rack up penalties and interst in the meantime during redemptio periods when you have an asking price offer and a ready willing and able qualified buyer?
appreciate your stoping by and your input
Sincerely,
Grace
I feel your pain. Short sales are really hard to actually make happen and they are insanely time consuming and stessful with no guarantee.
Yes LOL - you are correct Raylene - Jeff estimates that he would make more per hours invested at McDonalds :)
The client had been following articles of ours in our email newsletter and googled short sales and found articles by us and felt he knew we could get it done.
there is an ol saying - when we serve money instead of people we lose our sense of all that is right and good.
thanks for sharing your perspecive
Sincerely,
Grace
I am currently working on a short sale that seems to be going well. thanks, for the encouragment.
Hello Carol - that is great - I hope yours closes soon as well - can you imagine if every REALTOR nationwide took on one short sale and helped it to close successfully that would be over 1 million homes re-occupied
talk about housing turn around :)
thanks for taking your time to stop by and share.
Sincerely,
Grace
WOOHOO!!! way to go! Getting your clients needs met proves our worth every day! You rock!!
I'm thrilled to hear your success story, wish I had the same experience. I represent a seller in a short sale (medical issue) and we got an offer on 4/14...yet to get a counter from the bank. I have called them 19 times since then and logged every conversation and still can't get anywhere...maybe I need to get the media involved!!
Grace & Jeff, I m thrilled to hear this wonderful story....I llove happy endings and this one worked all the way around....I believe in miracles too.
Hello Keith - Thanks - it wasn't easy - it helped to have many working toward the same goal.
Hello Cindy - try asking for a supervisor or someone in authority above who you usally talk with. Perhaps that would help. Hope your client gets better too!
Hello Carole - perserverence helps as well :0 thanks for taking time to comment.
Sincerely to all
Grace
Congradulations Jeff & Grace! It's a great feeling when you know your client has been taken care of and as you mentioned it's not always easy. I finally received a call from the selling agent stating that the bank has accepted our offer and that we should be getting the "acceptance letter" on Monday or Tuesday, we submitted our offer on May 30,2008 so I think that's not too bad plus my clients are investors and the home owner's want to rent back. So if we get the "letter" from the bank...everyone will be happy!
Hello Nicole - Your deal seems like a win - win stiaution for everyone as well - good luck in setting a quick closing soon and yes your response time from the lender was very quick!! Thanks for sharing your story.
Sincerely,
Grace
Hi Grace, great job and thanks for the insight that this gave you. I just closed on last month that began in January, cash. Thought it was straight up and simple, but you never know. Thanks.
Hello Denise - Wow 6 months to close a cash deal ? Short sales are certainly not simple - your own recent experience supports that! Thanks for sharing it here.
Sincerely,
Grace
That is a great story. I have seen some progress in timing when it comes to Short Sale, but the moment you have two banks involved it can just take forever.
It's getting better in Indiana since January due to HB 1369 Anne,
hopefully it's better nationwide as well. We have a system for choosing which short sale listings we even take. We learned the hard way once, and one deal not closed is enough for us. we cannot help every situation, but with cooperative sellers and lenders (determined in advance) prelim title and talking to all parties, we feel confident the ones we list will get to the closing table which is why we try to get everything ready/established upfront if possible
thanks for your comment
Sincerely,
Gr4ace
Great information. Yes Ive seen first hand short sales closing in as little as 2 to 3 months. What I find amazing is that realtors are actually shining away short sales. They dont take them on because they think they are too difficult and time consuming. Maybe they are right. I am a short sale specialist and at Real Property Solutions we manage the short sale for all real estate agents and brokers. The agent would actually make more commission by submitting the short sale to us than doing it on their own. Our investors purchase the short sale, the realtor gets their commission from the seller/homeowner to the investor, then the investor relists the property with that same realtor. Hence, double commission.
Real Property Solutions will take the hassle out of your short sale. Get the short sale and pass it to us for full service management of your short sale. We take care of all the headaches associated with your short sale. All you have to do is get the short sale, pass it to us, and you still get paid double commission. Call us to find out the details.
Real Property Solutions
13636 Ventura Blvd Suite 324
Sherman Oaks CA 91423
Crystal Gomez, M.A
Short Sale Specialist
818-5671-4655 cell
888-571-7854
www.go.managemyshortsale.com
oh, well, Indiana vs California. Same banks, different rules. I absolutely like your happy end and media spread:)
I have two short sales only, but they take time as if 20 clients....The agents in my office has 20-30 short sale at a time, how can you guys handle them without even an assistant?
This was written in 2008 - there were less volumes of short sales then.
and very few in our area NW Indiana used EQUATOR back then (a system that is a mixed blessing IMHO - you can be more organized and handle more simple short sales on Equator, but it takes longer than dealing directly with a human being as we did in this case we wrote about above.
also equator cannot handle complex short sales with title issues etc...