Cash contract in hand, find out day of settlement the seller is $7,600 short and has no more money. The property has a failed septic system and will cost approx. $20-25,000 to fix. Had settlement attorney call the Bank of America rep to discuss settling the property and accepting $7,600 less and be done with the problem. The Bank said no and no letting it go through the Short Sale process. Seller is already behind 10 months. She could very well lose to Foreclosure before The Short Sale process is even approved.
What to do? Help?
You have a short sale. There is no other solution, as I see it, aside for Buyer paying the short funds.
A settlement with BOA likely will not be an option with BOA, espeicalyl if it is a 1st lien. Even on 2nd liens that are charged off, BOA does not like to settle. This will have to be reviewed for a short sale. There is still time to get it done. I'd be getting this file into equator and moving forward as quickly as possible. I'd begin collecting the short sale package right away if you do not feel you can still make this a standard sale with another buyer.
Feel free to reach out to me anytime with any questions.
Is there equity in the property?