Mindy Finds Out It is a Short Sale After Making an Offer
I worked with Mindy Oberhardt on a short sale home purchase. She had a surprise after she made an offer, because the sellers had used a limited service agent who only entered the home as a MLS listing and that was the extent of the listing agent’s service in selling a home. The fact that it was a short sale was not in the MLS, which resulted in a surprise that Mindy did not deserve as a part of the home buying process. Homes for sale with limited service agents that have high balances on their mortgage loans may put you in an unintended short sale. Here is what she has to say:
During August of 2008, I represented a buyer in his pursuit of a home in Raleigh, North Carolina, that was involved in a real estate short sale. The fact that it was a short sale had not been disclosed in the MLS listing. The listing agent, a limited service agent, had posted the property in the MLS but took no further responsibility in making the property for sale. I was notified by the Sellers directly that the property was a Short Sale Home. I immediately disclosed this material fact to the Buyer and discussed the uncertainties involved in securing a home which was involved in a short sale. My client indicated that he wanted to go forward with the offer. Having not dealt with short sales in the past and putting my client?s best interests as my highest priority I approached Tim Burrell, a colleague in my office who had done many short sales. He partner with me to represent the Buyer and provided a bit of Realtor training at the same time. I explained to the Buyer that Tim had experience which in combination with mine, would increase the likelihood of the offer getting approved by the mortgage lender and would increase the potential of the real estate sale being approved in a more timely manner.
Tim and I worked together to not only explain the process to the Buyer but to guide the Sellers through the process as well. Tim took the lead in securing the detailed paperwork that was necessary to provide a complete package to the loss mitigation department. He interfaced with the mortgage lender on a regular basis to keep the process moving forward. Both Tim and I interfaced with the Buyer on a regular basis to explain where we were in the sequence of events, to answer questions and to keep him realistic regarding his expectations. Both Tim and I were in contact with the Sellers on a regular basis to keep them informed as well.
Tim was able to get short payoff on the home loan approved in less than two months, an amazingly short time frame for this type of transaction. Tim was out of town at a CyberStars Summit, but keeping in touch with the home mortgage lender. While he was checking out of the hotel, he took the mortgage loss mitigation negotiators call. She said the short sale was approved, and we had to close the sale on Monday. Calling on Thursday to get a closing on Monday got Tim’s attention, as it woudl be impossible to get the home buying process completed in that time. After exploring the reason, the negotiator said the Monday closing was necessary to get the exact amount shown on the closing statement paid to the investor. Tim explained that there was no way to get the insepction accomplished, the appraisal done and the loan approved by then. However, he was able to convince the negotiator that the exact amount would be paid to the investor when the closing occurred in a couple of weeks. The negotiator was worried that the payment required for the taxes would decrease the payment to the investor. The buyer paid the little bit of extra money to cover the few days of taxes. The home closed within a reasonable time after approval, once the inspections and the appraisal were completed.
Both parties involved in this transaction were extremely fortunate to have the attention of Tim and myself in this transaction. If they had been left to the limited service agent who did not know how to short sale, I shudder to think what would have happened. I don?t know of many agents that would have had the knowledge that Tim brought to the table to take it from a shocking surprise to a seamless transaction. In addition, both Tim and I took great care to respectfully keep both parties up to date at all times and to calmly guide them through what was undoubtedly a very stressful process.