Yep....7 months ago I submitted a complete Short Sale Package to Chase on April 27 2009. After many months of frustration I received another Chase Short Sale Approval yesterday. We are closing on 11 December.
You know sometimes I am left just scratching my head. This one should have been a no brainer. The Sellers are both retired and disabled. They were able to purchase this home in late 2005 using a $100,000 cash settlement they received from a wrongful death suit for their son. Their son had always wanted to live in Florida so they took the $100,000 and put it down on a house that was selling for $183,000.
Of course what they couldn't have predicted was that their daughter who was supposed to move in with them and help with the mortgage payment decided after living in Florida for 2 months that she didn't like it. So she moved, Mom and Dad were now stuck with a house they couldn't afford.
When I first met them they were very depressed and couldn't wait for a buyer to come along and pay them $150,000 so they could move back home. Their mortgage balance at the time was about $90,000 and they didn't understand that their property was worth far less. How could they be upside down on their mortgage already?
These folks had done everything "right". They bought a house that was priced OK and put 60% down. Who would have ever though that within 24 months their equity was gone. And this wasn't just paper equity that we hear about so often. It was $100,000 CASH!
I sure wish I would have met them before they placed all the money they had into a property. Telling people of this age they have lost everything is by far the worse part of my job.
Eventually I was able to get them to understand that all of their equity was gone. They needed to pack up and move back to NY to be with friends and family. So that's what they did. Almost 80 years old and having to start over while living with their daughter. My job is so sad some days.
And to make it worse. They told me the only reason they were even doing the short sale was so I could get paid because I was so honest with them. WOW!!! Incredible strength in the face of adversity. It's almost over Alline....I promise.
Location:
- Kissimmee Poinciana Florida
Liens:
- 1st mortgage with Chase for $100,000. They agreed to accept $35,000 (35% or what's owed)
- Seller is bringing no money to closing and is NOT siging a promissory note.
- Listed and sold by Tutas Towne Realty at $39,900 with a 6% commission.
Challenges:
- The biggest one was getting Chase to understand that these folks were disabled living on Social security and did not have bank accounts and did file tax returns.
- Keeping the same Buyer on board for 7 months.
And there you have it. Another successful Short Sale approval from Tutas Towne Realty.
Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
Want to find out more? www.CentralFloridaShortSales.com
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Reserved Parking For "The Lovely Wife" TLW...ROAR!
Hun...
It's just too sad for me to have anything to say :(
TLW...ROAR!
Good work. It takes a lot to get these closed.
Hey Bryant, that was just a lovely tour. That's about what $39K will get you here also. I am glad you were able to get Chase to approve your short sale. I just had a major disappointment this afternoon with GMAC. Had a seller who paid $550K, put $250K down three yrs. ago, and we were only asking them to eat a tiny amount, but they would rather foreclose. Ya can't figure these guys.
By the way, tell TLW I think I have that same whip. lol
You're lucky to have a buyer with that much patience to wait it out. In Las Vegas it seems like 3-4 more months is about their limiti.
Bryant,
I am closing a short sale this week after submitting a short sale package to both the first and 2nd lender on April 30, 2009. The buyer's happened to be investors and didn't mind waiting it out. So, after all the time effort and everything is said and done, I probably made .50 cents and hour...just kidding...but it did take a lot of time, patience and effort on everyone's part. Congrats! It still feels good when you get it done.
Bryant- I know too well these stories, the good ones, the bad ones and the ugly ones. The ones who try to do the right thing have to fight so hard while those that walk across the street to buy their same house for less than half of what they bought theirs for get approved lickety split! I don't get it sometimes! I am glad they finally got closure. Did Chase release their deficiency rights? Katerina
Bryant - I do remember you mentioning this short sale MONTHS ago! I don't find Chase very zippy, either. Great work!!
I am always stunned when I hear about house values in your area. I'm just blown away. Such a sad story.
BB - I really like to read these short sale success stories 4xS :) ~Rita
Only 7 months, eh? Does it appraise at the 7 month old offer price?
Bless their hearts. Just too sad for words. Maybe this new thing the government is talking about will help. Always hope, eh?
Hi BB - What a sad series of events for these people. Thank goodness you were able to get a short sale for them so at least they don't have a foreclosure on their record. I can sympathize with what you say about their lost down payment. I just closed an escrow where an elderly woman in poor health sank nearly $100,000 into down payment and upgrades on a new home, then she had a stroke and died a few months later. All of her family's inheritance was tied into the house, which lost $100,000 in value before it could be sold. Not a short sale, but her family had to pay a little out of pocket to close the escrow. No inheritance for them either.
Bryant...
I am still surprised that the house sold for only 20% of its 2005 value. It looked like it only needed some cosmetic repairs.
Hi Bryant... I hate having to tell people bad news about any sale, but the situation is especially tough when you have to tell someone their life savings has been wiped out due to market conditions.
Hi guys. This particulay situation kind of blows a hole in the old "Save your money and put 20% down" plan. I say use the least amount of your money as possible. Let the lender take the risk if they are willing. Place your money some where safe. Like in a hole in the yard inside a coffee can :)
These are the ones that are really tough to handle. If there's to be any real justice, this is where a principal reset would have allowed these folks to possibly stay in their home.
Well done Bryant.
Thanks to the bailout money. These big banks don't have process short sales in a timely manner or be accountable.
Congrads on getting the approval.
BB - You have a pretty decent pipeline of these short sales. Looks like you are getting really good at it too!
I am amazed that any buyer would stick around for 7 months. If it were me, I would probably be re-analyzing that price. 7 months ago prices were a bit higher, weren't they?
Its always amazing to me how long it takes to complete these short sale transactions. I worked for CHL in the short sale division and we hardly had any that lasted more than 2 months. Usually if it lasted longer than 2 months it was because we did not receive a complete package. Sounds like you submitted it completely, so who knows what Chase is doing over there. Congrats on finally getting it closed out though.
BB - You have written about these folkd before, I believe. I'm glad it worked out, but very sorry they truly lost their son and $100,000 cash. $39,900 an incredible price for the buyer.
How does the price go from 180k to 39k, thats amazing in my mind. What a deal for the next people purchasing the house.
It is a very sad story. Now that the federal and state governments are getting involved I hope it gets easier to help people. I can't believe a house can go from 180,000 to 39,000 in 24 months. Crazy!
BB,
You've given me hope! At 6.5 months, I've been despairing a verdict from Chase. Perhaps I just have to wait 2 more weeks?
That is great that the buyer stayed around, and that breaks my heart for the sellers.
THat's talent, keeping a buyer waiting all that time!