About a month ago I wrote a few lines lamenting my "short sale" experiences ... I've Found the Secret of "Short Sale" Success! ... And proclaiming my conclusion that the only money to be made while dealing with short sales is to teach the classes.
Well, here's the update! At the time I had two pending short sales, one is still pending and might, I said "might" actually close. The other was rejected by the lender and allowed to go to a foreclosure sale.
No one from the lender told us it was rejected, no one told us anything at all! One day, after days and days of calling, calling, calling ... proof! We magically actually reached a real live speaking person who researched the file on the computer and said, "Oh, that offer was rejected days ago."
No communication, no counter offer, no notice, nothing! When asked point blank what sales price was acceptable, no one could give us a number. What to do? The sale date was rapidly approaching in two days and we had no idea.
To complicate the matter ... we knew the BPO that the lender had in their file was substantially less than the offer on the table, we live in a small community in western Nevada and there are just not that many realtors so it was pretty easy to figure it out.
The buyer's agent was frantic to work this out because the buyer was his son so he had a very emotional and personal interest. The buyers would have paid more, the selling agent would have lopped off his commission to raise the net to the lender, there were many ways that we could have resolved this and closed the sale. All we needed was an intelligent thinking person on the other end of the phone with the ability to actually do something.
The rest of the story! The property was offered for sale on the courthouse steps the following day. No one bid so, the Lender now has another REO in their portfolio that they will have to process and sell.
The lender will hire a servicing company to secure the house, shut off the utilities so the beautiful lush landscaping quickly dies in the heat of August -(dead lawns are SOP for REO's), pay some other realtor to do yet another BPO, list the house with someone at a greatly reduced price because now it's an "REO". The bottom line is this, they will take the long way home and spend more money to get a lesser return. Is it any wonder that the mortgage industry is in such a state of confusion?
Here's the final absurdity, the price the house was offered for sale on the court house steps, the opening bid, was over $8,000.00 LESS than the written offer that was pending on the home.
I'm officially through with short sales ... let someone else be a hero but I'm done. This one really hurt in many ways.