A Look At The Short Sale As A Work In Progress

Two weeks ago, I posted the second entry to this subject of representing the buyer in a short sale transaction. We have discussed the aspects of this transaction up until the seller’s lender had approved the short pay settlement.

In our contract, we agreed to deliver the earnest money deposit to the listing broker within 72 hours of the bank’s approval.- The first thing I did was call the buyer to let him know that our offer had been accepted – and to remind him that he needed to deliver the earnest money to the listing broker.

Acceptance by the lender of our offer also triggered the due diligence contingency which gave us seven days to perform any tests and inspections. In some instances, I would have made this contingency for ten days, but in this case it was unnecessary. I advised the buyer to pay for a professional home inspection – and referred Charlie Thompson of Attics and Under Home Inspections as the man I would recommend.

I delivered the earnest money to the listing agent, and the buyer scheduled an inspection with Charlie Thompson. A few days later, we got together at the townhome to meet Charlie and find out what was right and wrong with the dwelling. As usual, Charlie found several items that needed to be addressed – but nothing of great import that would cause us to terminate or attempt to renegotiate our agreement. All in all, he liked the unit and felt the buyer was buying a good unit.

Meanwhile, I forwarded the bank’s approval letter to the closing attorney so that he could begin his title examination. A few days later, the attorney informed me of a small title problem regarding the chain of title. I gave him the contact information for the asset manager at the bank, and let him earn his money.

The attorney resolved our title issue in a few days, and sent us a copy of the preliminary HUD-1 settlement statement for our review. After a minor change, we approved the HUD-1 to be sent to the lender for approval. Once again, the lender gave us speedy service and quickly approved the HUD-1.

At this point, we were ready to close. We set the closing for the following Monday, and notified all parties.

Closing was quick and painless for the buyer and seller. We were in and out in twenty minutes, as this was a cash transaction.

I must admit, this short sale has really encouraged me – and I hope we see more like this.


As always, if you have any questions regarding real estate in the greater Atlanta area, feel free to contact me here.

 

9 Responses to “Representing The Buyer In An Atlanta Short Sale Epilogue”

Are you going to give the details about the price and appraisal?

Short sales down here in Orlando can run 3 – 4 months for bank approval, then another month to close.
Are you finding the same timeline in your area?

>Charlotte: The sales price was $138K; there was no appraisal needed, as this was a cash deal.

>Bill: Generally speaking, most multi-lien short sales are taking 3-4 months to get approvals. Hopefully, this timeline will now be shortened.

Doug,

Wow, I want to know what elixor you’ve been drinking! Yikes, I kept waiting for the other shoe to fall as your post continued.

In San Diego, unless you get the rare listing REO agent who knows their stuff (and I have had a few of those), it’s a complete nightmare. I must say you clearly did everything you could do in this transaction. I wonder what the result would have been had the bank not reacted so quickly and affirmatively to make this happen.

Well, I don’t want to do anything but bask in your success. So,”stay encouraged”, but stay alert.

>Don: This one was pretty straight-forward. Had there been multiple liens, it would have been more difficult. Had the bank not been so responsive, the buyer would have bought something else (we were already preparing for that possibility).

I hope it’s a harbinger of things to come. :)

I don’t know how you did it. I have never heard of anyone getting a short sale done so fast.

I found your site through BH and I must say that I’m impressed. Finished reading your SS posts and I must say that short sales have been particularly frustrating for clients, but we (as the professionals on whom they rely for sound advice) must keep them calm. Subscribing to your blog.

Very interesting stuff. I’m not a real estate agent so I didn’t know much about short sales, but now I know that’s not something I want to pursue. Thanks.

I work for a lender that manages a lot of REO properties. There’s a BIG push to sell via pre-approved short sale vs. actually foreclosing. The last 5 listings assigned to me for borrower pre-approval purposes were all approved short sale properties.

They close faster when they are pre-approved, expect to see a LOT more properties coming on the market like this.

Something to say?

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