The most difficult short sale I have had was an $800,000 property that had 3 mortgages and IRS tax line and a creditor lien.
I was able to successfully close the sale with pay off of pennies on the dollar on the third mortgage and the creditor lien. The IRS lien was just removed and followed the seller.
It was a pretty crazy situation but I was able to get the deal done.
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Great job!
Kevin, Congratulations !!
I had a similar one I worked on for 2 years in the CA Desert. 1st was $1 Million (plus past due interest, legal fees, and penalties = $1.4 Million), 2nd $100K, 3rd $40K, 4th 30K, an IRS lien of $35K, a CA-FTB lien of $20K and a misc judgment of $30K. Borrower vacated the house and shut off the utilities - and also stripped-out all appliances, the sprinkler controls, and the pool equipment. City complained to the servicer because the lawn died and the pool was green in 120 degree heat. LPS Property Preservation (for Chase) turned on the water without ever going inside the property. There was a broken pipe and the Property flooded, black mold took over the house. Prop Pres boarded-over the pool and spa. The City began levying fines of $35K per month for neighborhood impact (thisis a very high-end neighborhood in the Palm Desert area. We received an offer of $535K based on condition and market. Chase / Deutsche Bank declined the offer & the Buyer (a very savvy Broker / Investor) walked-away (justifiably so). Deutsche took it at FC sale for $735K and now it has been on the market as an REO at --------> wait for it------------> $535K for 30+ days with no offers.
We had all of the liens negotiated to be satisfied & removed but Deutsche Bank just wouldn't cooperate.
This is the 2nd transaction I've had with Deutsche Bank that ended without success - I don't work on any transactions with Deutsche Bank as investor any longer.
I applaud you for getting your done - Congrats again!
Wow Thom. That is the best "awful" experience I think I have heard. I can't help but wonder who the staff is that declined the offer and if they either learned from this mistake or were fired. Good you were trying to do the right thing and help.
Same here.
I had one (closed at $775,000) with 3 mortgage liens and 15 blemishes on title. That homeowner had overbuilt the neighborhoods average value by approximately $2,000,000 tax value to $750,000 neighborhood value at that time 3 years previous to our short transaction.
The first was paid in full, I negotiated the 2nd lien payment to the 3rd lien $50,000 at closing and the 15 were scrubbed after updating a previous business BK.
The final snapshot was this:
1st lien: 100% pre-foreclosure.
2nd Lien: 60% NPV they received $180,000 at the closing and may have been totally wiped out post foreclosure. All comps were coming in at $550,000 max however those were incomparable to the massive upgrades on this property and the buyer was willing to over look that.
3rd Lien: 12.5% NPV- I acquired the 3rd lien approval first in 7 days and used that doc to negotiate with the 2nd lien to pay them an unusally high disbursement of $50,000.
Start to finish closed in 67 days.
Awesome job!
Kevin - Congratulations! What was the key to your success in this one?