I HATE strongly dislike having transactions fall apart at the last minute. Last Friday, I was supposed to close on one of my Poinciana Florida short sale properties. It was a pretty difficult deal that required almost 3 months of negotiating with Wells Fargo.
After many days of going back forth on the negotiating of a promissory note we finally arrived at an agreement between Wells Fargo and the Seller and received the written “Short Sale Approval”. All was right with the world!!!
The next step was to make sure the Buyer was still on track by getting a closing date addendum signed. The Buyer signed. One of the reasons I wanted the Buyer to sign another addendum was to make sure they were still motivated to get this deal closed. We also had them place an additional escrow deposit which they did.
Feeling pretty confident, that everything was a go, I ordered the pool clean up. The pool was a disgusting green and needed to be cleaned up prior to the appraisal being done.
The pool is cleaned, the appraisal is good and closing is right around the corner. I can almost smell my TLW’s check!!!
Then, much to my surprise, the buyer decides to change lenders two weeks prior to closing!!! Holy crap!! Now I have to go back and get an extension on the Short Sale approval. Fortunately, I had a great loss mitigation negotiator and getting this extension was not an issue.
A few days later I get the updated approval letter from the new lender only to find out they had approved the Buyer for a USDA Rural Housing Loan. That’s all well and good except……..you can’t use that loan program on a house with a pool!! I call the loan officer and point this out and he says “No problem I’ll just switch it over to a FHA”. Well OK then!!! Just don’t forget to mention to the Buyer that he now needs additional funds to close.
Reluctantly, I have to call my favorite negotiator and ask for another Short Sale extension. This angel grants it immediately and sends me over my second extension.
In the meantime, my Seller is served the “Final Summary Judgement” informing her that the sale date has been set for…….17 October. That’s right….it’s today.
I’m sad to say that after getting everything sorted out with the Buyers loan and scheduling a closing for the 10th, the Buyer decided to NOT close. He got so fed up with the process that the day before closing he decided to walk!!!
I tried everything I could to assist the Buyer’s REALTOR® and mortgage broker with getting the Buyer back on track but nothing worked. The deal died.
I contacted my favorite negotiator to see what my options were but her hands were tied. The Investor, FreddieMac, would not delay the auction without a new contract on the table.
So, this morning, at around 10 a.m., my Seller lost her house at auction.
Folks, working Short Sales can be frustrating. I win more than I lose but it still sucks not being able to win them all. I learned a lesson with this one…..if at all possible, have a back up contract.
I am not yet an expert at Short Sales BUT I will be. Will you?
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