Archive for November, 2012
I am writing about a short sale that went wrong. Now I know you can’t win them all…but this should never have ended up they way it dit. I appologize up front to all reading this blog post but I have to vent my frustration somewhere so why not a better place than this forum here.
We all know how difficult short sales are but this was difficult from the beginning. I had a HOA who was un- cooperative and refused to talk to me and said I should talk to the association attorney. I had a first and 2nd lien who were not very flexible and required my seller to sign promisorry notes in order to get the short sale approved. I had a seller who in the very end of our negotiating the approval decide to talk to a family attorney who told them that it would be better to let their home go to foreclosure.. so guess what .. the short sale did not happen and the sheriff sale has happened and everyone looses..
I want all to know that a Foreclosure is not Better than a Short Sale. With a foreclosure everyone looses. My seller will now have a foreclosure on their record and a potential Bankruptcy if the bank pursues their judgement against them. The First Lien while it has the property back after the sherriff sale still has to wait to put the property back on the market and sell it at a potentially lower price. The 2nd Lien gets nothing and has to spend legal costs to get a judgement against the seller… and agin the seller will more than likely file for Bankruptcy inorder to avoid paying them anything. The HOA looses several ways.. For one thing they do not have an owner occupant living in the unit. The amount of money owed will have to wait until the unit is re-sold as an REO.
There is not much I can do now but… help someone else who can be helped…
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