A Short Sale takes a Small Army in New Hampshire!
First I have to give a big shout out to List Agent Tom McGuirk, from Weichert Realtors and buyer’s agent Jane James, from Marple and James. Some short sales are VERY rocky, but when everyone has the same goal in mind, it certainly makes for an easier approval.
Tom listed the property on Court Street in Exeter last year in November, and we kept dropping the price until we got an offer in April. We of course promptly submitted the offer. Thankfully the seller was on the ball. I can’t stress enough how important it is for a seller to be RESPONSIVE. If we ask for a form on a Tuesday, it better be to us on a Wednesday, even if it has to be notarized.
We were up against an auction deadline which we were able to stop thankfully. The entire short sale package was submitted. The property had two liens. The first lien holder was service by GMAC and the second by CITI. Julie, our amazing negotiator went to work. The property seemed to be going along smoothly. The BPO was ordered and Tom met the agent and explained his “liquidation pricing” – then we waited. Well Julie was told that if the property wasn’t closed by May, that it would be charged off. This makes things a bit difficult because you are now working with a completely different department, so while we were working with GMAC right along, CITI moved its files around. It delays the process.
Here is where it gets fun. GMAC countered the offer of $90,000 to $110,000. Hmmm, we thought, THIS wasn’t going to work but we went back to the buyer’s agent and explained. The buyer countered at $92,000 and that was the maximum amount they could do. They were a financed buyer. GMAC went down to $105,000. We were in a stalemate. Interestingly, the buyer’s appraisal said the property was only worth $103,000 so we TRIED to submit that and patiently waited.
GMAC was only the servicer, thankfully, and Fannie Mae was the investor on the file. I have to give Fannie a bit of credit. I think they are doing their best at trying to streamline the short sale process and they have given negotiators direct access through their help desk. Unfortunately when I called the help desk, I didn’t get good news. I love my guy at the help desk too, but his hands were tied. $92,000 wasn’t going to cut it. I could NOT believe this deal would die for a difference of approximately $10,000. My seller was willing to contribute and I stated that, however he said the seller contribution had nothing to do with the NET the lender would receive. RATS!!!
My property was heading to foreclosure if we didn’t do something, so, it was off to the higher ups at Fannie Mae. How could a foreclosure happen for $10,000? They would NOT get more if the property went to auction, so that’s what we set out to explain. A well crafted letter emailed to some higher ups at Fannie that could actually REVIEW the file did the trick, along with Julie PUSHING the charge off from CITI for approval. POOF, somehow this sale got approved.
My point is all parties were involved to make this happen including the seller, agents, buyer, our firm and title company. There are constant moving parts in a short sale and at any given time you must return paperwork promptly and when one person cannot respond nor communicate you may have a very tough time getting a short sale approved.
We were thrilled to work with everyone on this sale and are THANKFUL it closed!