Just letting homeowners thinking about doing a short sale know of some of the last minute craziness that is sometimes unavoidable. I have a file where the borrowers property took several months to get under contract. In South Florida, that is a rarity! Properties here can get multiple offers as soon as the same day of listing. So in this case the one lender on the file calls me yesterday to advise me if the property does not close in 2 days that unfortunately, the property will have to go to foreclosure. Just like that! So everyone involves does everything but move mountains to be ready to close. Then later that Wed. night I get another call from the lender SPS Servicing. Now the investor, Nautilus Capital Mgnt needs to net $80,682. This equates to a sales price of $90k instead of the contract price of $80k.
So the clock is running out but I am pulling out all the stops to try to get a successful closing for my client who has done everything necessary to try and cooperate. Since I found out from the servicer that the adjusted BPO value is $75k I reached out to the investor directly to see if they will re-consider taking the $80k. If they answer me today we could still close on their mandated date of tomorrow. We'll see how it plays out.
10-11-12 Update:
File officially declined on Monday. Letter went out to borrower. Then on Tuesday low and behold the buyer agent states NOW the buyer will pay $85k for the property. My question was why didn't this answer come last Thursday when it would have been helpful!?
The next step is I placed the property back active on the market as an approved short sale. Will try to get the last buyer to put the $85k offer in writing in the form of an addendum. SPS states it will only take about a week to get an answer from the investor. If yes, we close asap. If no, I'm already marketing the property for a better offer. Borrower is going down to courthouse today to submit paperwork to get foreclosure sale date that is set for 11-7-12 delayed. When I get confirmation of this I will send same to SPS along w/ updated offer addendum. Until my next update....
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Yes, Miriam, in dealing with short sales the maxim of "the transaction is not over until it closes and funds" has never been more true. Except that in your case even that doesn't mean it's over! Let us know how it turns out. Good luck!
I have a similar short sale. We got a final approval, all the docs were signed, money transferred and then a note that they need to re review the entire sale. The investors or the banks or bath are torturing individuals going through this process. Both the buyers and the sellers are put into terrible situations. What is the necessity of this. Is this a large institution trying to negotiate a better price and being really very bad at it? or what?