Back in December I listed a home to that needed to be sold by Short Sale in Winding Creek at Fair Market Value for $275,000. It didn't take long even with the Christmas Holidays, I was able to present the homeowners with two above list price contracts to consider.T
"The offers I presented the sellers were very good. Both were over list price."
- Offer #1. FHA- $285,000, three percent closing costs help for buyer and closing Feb 26th, 2010
- Offer #2 VA - $280,000, three percent closing costs help for buyer and closing 30 days from Short Sale Approval.
The seller choose the contract #1 the $285,000 offer. To take that one step further, I suggested the seller accept ( ratify the contract) the other contract a the official back up buyer. That contract was ratified at $280,000.
Fast forward to March 2nd. the homeowners bank returned a counter offer of $330,000! Yes, you read that right, the negotiator stated that the investor considered the contract in review as to low and stated they were not willing to accept the short sale offer unless the sales price was raised from $285,000 to $330,000!
That is a $45,000 jump in sales price!
I tried everything, revisited the comparables I originally sent to the bank with the short sale request and did a new comparative market analysis. My findings were the same. $285,000 -$290,000 was about the highest that home could be sold for.
March 4th. After much discussion with lenders, the Buyers Agents and the seller, it was clear, both buyers could not get approved for a $45,000 increase. So both asked to be released from contract.
Fast forward March 6th.Homes goes back on the market and against every bone in my body I raised the list price to what the sellers Bank wanted> The new list price was $330,000. In the hot spring market with more than a dozen showings no offers were submitted on the home. It sat there. We escalated the file again, and finally" the bank project manager said you will be a test case get me a $315,000 offer and we can make this work." So I updated the MLS System against my better judgment See listing here.
We dropped the price, and a ready, willing and able buyer presented an offer at $315,000, however they needed three percent in closing costs to be able to buy. Bank said it is customary here, to pay closing costs for a VA Buyer..so send it in. Awesome I thought, the seller can avoid foreclosure.
Then WHAM!!!
The sellers bank comes back seven days later with a determination of:
- $335,000 Minimum Acceptable Sales Price
- Or $315,000 with no closing costs.
- Settlement by June 11th, 2010.
- If these terms cannot be met, no short sale will be granted.
- No Exceptions..No Discussion.
Fast forward. All parties jump through hoops and everyone gives a little and we come to terms. The bank issues the Official Short Sale Approval Letter.
Now for all of you who are not familiar with the short sale process waiting for the Short Sale Approval is just that waiting. The seller and buyers must wait for what is called "third party approval" Once that is granted, they the buyer and seller have 30-35 days to remove the normal contingencies and move toward closing.
- Home Owners Association Document Review -Done
- Buyers Home Inspection- Done
- Termite Inspection- Done
- VA Appraisal-- The left shoe dropped!!!!
Today, we just got word the VA Appraiser determined that FAIR MARKET VALUE FOR THIS HOME WAS $290,000!
This short sale will get approved and we will get to closing. However what makes me totally crazy is this homeowner could have been to the settlement table months ago. We had two buyers who could have raised thier offer by $5000 to get to closing.
Just another day in the world of short sales. Stay tuned for the resolve on th is one....
You Can Reach me direct at 703-851-3085 or contact me by email . Contact Peggy James or Erick Blackwelder of Erick and Company - Exit 1st Choice Realty,14029 Crossing Place, Woodbridge VA. 22192. Realtors®, call 703-851-3085 (Peggy) or 703-590-2252 (Office) to list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas, Montclair, Dumfries, Occoquan, Dale City, Gainesville area's. 
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Contact Peggy James or Erick Blackwelder of Erick and Company of Exit Choice Realty, Woodbridge VA. Realtors®, call 703-851-3085(Peggy) 703-590-2252 (Office).Give us a call and we can "GET YOUR HOME SOLD FAST"to list your property for sale we service Woodbridge, Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas,Gainesville, Garrisonville and Triangle area's.Basically all of Prince William County Virginia. Manassas Park, Haymarket,Montclair, Dumfries, Quantico, Fort Belvior, Occoquan, Dale City.
Don't you love it??? WE all have similar stories and still teh banks don't get it....grrrr
You didn't mention the bank but I believe this to be an isolated case,( maybe normal last year) because I see the process getting better
Hi Deborah, I completely understand that they have a tough job. I do. And yes I'm sure there are times when homes are priced wrong or to low. However, this could all be avoided if the bank would just use Certified Uniform Appraisals to determine Fair Market Value.
Hi Ed, the bank is BOA! This is not the only one. On a short sale transaction we are currently working as a Buyers Agent, the home closes this week. BOA returned a counter of $90,000 more than the list price. It seems to be a new trend...
what a story--so lacking in common sense, and nothing you, the seller or the buyers could do about it. Sure hope you can keep this one together, Peggy. (PS--an update on Erick?)
Hi Lottie, where there is a will there is a way. I will not rest....these homeowners have done nothing wrong. Stay tuned..
Thanks for asking about Erick. I was at the hospital at 7am this morning. He is not out of the woods yet, but has been downgraded from ICU to PCU. The Doctor says he is heading in the right direction today.
OK Peggy -- you've given me the motivation I need to get out for a run this afternoon. I'll head to the open space preserve I go to when I want to meditate. When I'm at my special spot, I'll stop, perch on a rocky outcrop and send my healing energy over to Erick and all of you.