CLOSED! Negotiated Spencer Massachusetts Short Sale – Fannie Mae Backed!
We are on a roll with Keith Shaw. I can’t even recall how many Massachusetts short sales we close with him over the last few months. He did a great job on the sale. Absolutely amazing.
This was a one mortgage Lien property with executions. If anyone actually follows my blog what they would realize it is any Fannie Mae backed property that has a non mortgage Lien on title will not get any proceeds given to them out of the proceeds of the sale. This has definitely caused major concerns. Because of this new rule, which came out this past August, you can no longer offer a 2nd non mortgage Lien holder $6000 out of the proceeds, which you could before. Any payouts either have to be done separately or the buyer has to bring them to closing. Unfortunately, this is what we were faced with on this particular sale. Keith of course did an amazing job and rallying everyone to do some type of contribution. Wells Fargo was the servicer on the sale. They did OK and we are able to get approval within our 60 day time frame that we like. It was actually less than that, but hey, who’s counting? 😉
The biggest hurdle on this Massachusetts Short sale was the buyer side. The buyer seemed to drag their closing out for quite some time and we ended up losing approval on one of the executions. Once we lost that approval, the execution holder and
wanted more money to reissue approval. You will find this happens quite frequently on second liens. It’s like blackmail. They knew they had us over the barrel and unfortunately ask for more money to extend their approval letter. This money came from the buyer. Because it was his delay that caused the second Lien approval to expire. Thankfully he agreed and we are in able to get another approval and get the sale closed.
The moral of the story is follow your contract deadlines to the T. If you don’t they could bite you in the long run on a short sale.
Thanks to Keith, Grugnale Law, and of course Julie in my office! We have a great team!