A Short Sale is a Myriad of Moving Parts! Westford MA CLOSED!

Westford Massachusetts Short Sale

So we just completed a doozy.  Mind you, last year we completed a sale where the primary lender took over $200,000 loss and negotiated 1.2 million in executions and attachments on the same property for a payoff of $11,000.  We see doozies all the time, but the sale we closed this week in Westford, MA definitely was a messy one.

The referral came in from an attorney office we work with.  Can you help this homeowner?  SURE, I say with the enthusiasm of a first grader asked if they want a bowl of ice cream.  I reached out to the homeowner which is always my first task.  I wasn’t sure if he truly understood everything I was telling him.  Much like many homeowners, he had lost his job, gotten divorced, and now was losing his house.  It’s a story that is all to familiar.

So, next I pull in the team.  I called Lisa Sevajian to list it and Lisa is a true professional.  She is a juggler just like me.  You have to have a LOT of balls in the air to work in short sales because all parts are moving at once.  I have Liz in my office work on

Lisa Sevajian Johnson - Short Sale Agent

pulling the paperwork and of course Grugnale law worked on the title part for the seller.

Well, this property had a primary lien, MA DOR lien, IRS Tax lien and a private mortgage from the ex-wife.  Once I saw title I said, “Oh no, I’m not feeling as enthusiastic now” – Messy title = messy sale, but we have an obligation to try.

When negotiating a multi lien property you always have to start with the primary first and make sure they will approve, but at the same time you should be negotiating all smaller liens…DON’T wait.  Do them all at once.  Some of the smaller ones can take longer.

Interestingly the first lien holder was GREAT to work with.  They issued approval after we did a valuation dispute.  MA DOR got a payout, and then we got the wife to settle for a nominal amount, but the hold up was the IRS.  As they reviewed everything they saw the ex wife owed them money so the payout on the HUD to her, was to be for them as they were in a senior position.  Uggg…now what?!?!

Thankfully we were able to renegotiate with her attorney and she unfortunately received nothing for the release, but between three attorneys and 4 title liens, it was definitely a lot of moving parts.  Each subsequent lien holder must release their interest in the property or the sale cannot be done.  Unfortunately I didn’t think the buyer’s attorney knew too much about short sales because the requests he had for us in order to secure title were absurd, but we complied knowing we needed to appease him.

Thanks to Lisa who has more patience than I ever could have on a GOOD day, and Grugnale Law, this property closed this week.  We are so grateful to all involved who got the deal done!! Thank you.

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