The Lengthiest Short Sale Deal Ever
Kevin Kauffman is together for forgettable Friday by the forever dapper, Coach Collard. We’ve got a little situation to share with you today about a listing that Fred and Kevin took in November of 2008.
So, a year and a half ago, Kevin and Fred took a listing in the Scottsdale, AZ vicinity listed at $330,000. That is what the home was worth in November of 2008. Keep in mind that the market was still diving progressively at that point. They received an offer at $330,000 and took it to lender. Using the same short sale process, they kept getting rejected. There was a quarrel on the value of the house and were recurrently rejected through January of 2009.
The first servicer on the folder was COuntrywide and the next was Bank of America. At that moment in time Bank of America was in a very tough place. Also, in the middle of this development was the Countrywide amalgamation which produced added problems.
We put the home back on the market and got another proposal at $270,000 and got rejected. The purchaser eventually walked away from that. Again, we got an offer at $265,000 and again the contract was rejected and the buyer walked away.
It has been an unusually challenging folder because we rarely go through one or two offers, but with this file we have had numerous buyers walk away. We finally got an offer accepted at $255,000 in the first quarter of 2010 after six weeks. After the inspection, the buyers walked. However, we had another purchaser with the same proposal and same net earnings for the lender. The negotiator did not believe that was an easily approvable agreement. It took an extra thirty days to review and were rejected for the same offer that was approved before.
So, we had to escalate to the investor and bring this to their focus. The investor looked into the file and found out that the contract was accepted. Over a 19 month time a lender rejected numerous better bids simply because of lack of communication.
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