As most of my readers know by now I specialize in short sales. Many agents claim to be an expert but when asked to show their numbers or show professional referrals, they cannot. I handle the short sales for many agents in my office as well as for several local attorneys, and have even stepped in to assist agents in other brokerage firms.

Yes, I now have sufficiently patted myself on the back  )!!!!!

Well, my experiences with a recent short sale left me out of wind and even speechless (and anybody who is laughing thinking there is NO way I was speechless, I was……for 5 minutes or so!!)

Here is my story and I’m sticking to it……………

About 1.5 years ago an agent in the office asked for me to assist him with a short sale. “Great!! I would love to”. We went together to the home and were interviewed by AND interviewed the homeowner (yes interviewed the homeowner…not all people are a match and I need to know that they understand the process and will work together as a team). They were happy with my explanations and expectations and were confident in my abilities.

So the journey begins!!

The home was marketed agressively by the listing agent and in the anount of expected and necessary time we received an offer to purchase, we actually received several and the home went into overbid. With the overbid amount the homeowners were actually extremely close to the balance due on the mortgage so it would have been a tiny short sale.

Yippee!!!!!

NOT!!!!!

The homeowner really got scared. They decided they wanted to try again for a loan modification as they really did not want to sell. You see, prior to my involvement they had tried a modification directly with their lender, got approved for a trial mod, and than the lender decided based on their numbers that a permanent mod was not an option. The bank advised them to do a short sale. The bank did say that if their income changed to try and reapply for a mod. Well, the homeowner felt that their income changed enough to qualify and they wanted to try that route. How do you get upset with someone for wanting to keep their home????? So we left it at if plans do not work out please call me back.

6 months later they contact me saying that the mod thing isn’t working. Okay, well lets get the paperwork rolling. Approx. 2 months later we get an offer. Great! They sign the offer tearfully. They have a title 5 inspector visit their home….low and behold we have a failure. Fabulous. Well, just a little bit of extra paperwork and the numbers to the bank change, but nothing earth shattering. The process continues. An appraisal was done by the homeowners lender and a negotiator was assigned. We were down to the finish line, doing some number crunching…the end is in sight…I see the light……….

To no avail. The homeowner decides again that he wants to try a loan mod. He felt that he could not go through with a short sale unless he knew that it was his last possible option. Ho-hum, ho-hum.

Well, whaddya know about 4 months later I get an email.

Here we go again…..try number 3.

I know at this point you gotta be thinking “is this for real?” the answer is Yes.

So here we go again (and not the song). Am I nuts? Possibly. But in my defense I like a challenge. And if a short sale with a indecisive seller and a failed septic isn’t bad enough, now lets add a couple of large tax liens to boot. I mean sizable.

An attorney told the seller a short sale would not be possible with these circumstances. That alone is fuel to me. Not possible???? Never say no to me!

Oh, did I forget to mention I don’t like the word “no”? Well I don’t.

Let the games begin! We got numerous offers in a very quick fashion, but they were dying just as quickly. Short sale, failed septic and liens does not make for a cozy buyer. But alas we got one, and an attorney for a buyer of course! Aaaaaaahhhhhhhh!!! Should I run now or later? Nope I didn’t (no one ever said I was the sharpest tool in the shed).

I submit the entire package with all the necessary docs and my substantiation of value plus a diarrhea of supporting facts and arguments. Another appraisal is completed. Another negotiator is assigned. Number crunching happens again………………………………………..

Well, guess what? If you are reading this you have to be thinking either “you are too soft to know when to quit” or “yippee you did it”.

Well, I did it!!! Short sale approved! Humungous liens get paid in full and we close!! Happy day for all!!!

The buyers do what they gotta do, then the closing attorney does what he has to do. The closing attorney sends me the final HUD (the statement of final numbers on a closing) to send to the bank for approval, which is housekeeping and standard business on a short sale, and I submit it to the lender. After several changes and the buyer agreeing to cover some typical seller related fees we get a final HUD. We are set to go….

But hell no!! The sellers lender rescinds the short sale approval. No closing! Yes, it is well within their rights to do this. They can legally leave families homeless, screw with people and think it is okay. We are all done!

Remember in the beginning when I said I didn’t like the word no?

Now let the games begin. The buyer, who in case I forgot to mention is an attorney, was sending threatening emails like “I am going to sue you” or the lovely Lis Pendens (lien) threat. I feel just lovely at this point.

Not taking no lying down I did what any righteous, aggressive realtor would do….I screamed!

Then I did what no other Realtor would do. I did not stop. My job wasn’t done. This home did not close and we had homeless buyers, i know it is hard to have sympathy since he was a lawyer but in my defense he is still a homeless buyer.

I sent an email to Senator Brian Joyce, a fax to Congressman Stephen Lynch, and an email to the vice president of this lender (this name was left out deliberately to protect the lender and privacy).

Congressman Lynch’s office responded. They agreed to contact the lender. They were quite clear they would not use any political pressure or influence, but would question the situation. I am okay with that and abundantly thank them for any call or email that they make. They did call and email.
Mind you I still have not heard from Senator Joyce.

Well all of a sudden executives from this lender are contacting me telling me they are looking into the situation. I do not know if it was the call from the Congressman’s Office or it was the email to the vice president of the lender that causes the actions.

When 4 days went by I had no choice but to admit defeat. I fought the good fight and lost! I even fought the ugly fight and lost too! But I tried!!

Then on Tuesday morning I get a call from the negotiator and was told that they re-approved the short sale!!!

Now here we are on Wednesday, the short sale was approved and an anxious buyer got all things together again and we closed!!!

I want to extend thanks and give kudos to: Diane Matthews, Realtor (buyers agent) Joseph Fiddler, Attorney (sellers attorney and my right arm) Walter Mirrione, Attorney (the closing attorney who went above and beyond). Any one of these professionals I have recommended and used or would recommend in a heart beat.

Bobbie Files, C.D.P.E.
Certified Distressed Property Expert
Your Bristol and Plymouth County Realtor
508-238-5000 x.296  Office
508-521-9480  Direct / SMS
888-570-9907  Toll Free Direct Fax
bobbiefiles@kw.com Email  

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