A Short Sale Nightmare

By
Real Estate Agent with Martin County Residential Homes, Condos and Land Sales 3090099

A Short Sale Nightmare


Back in 2007 when short sales were just beginning to make an impact on the market, I had my first short sale listing.  It was a very well maintained pool home in Jensen Beach and the owners had been meticulous in maintaining their dream home.  Unfortunately, circumstances worked against them as the changing economy cost the husband his job and the wife was diagnosed with cancer.

With the medical bills, no income and the huge stress on their lives, a short sale was their only option.  Their lender would not consider any other alternative.  We placed the home on the market for fair market value and received a cash offer within 30 days.  All the paperwork, hardship letters, etc, requested by the lender was submitted promptly.  Frustration

Now comes a really long story and I won’t bore you with all the details.  Here’s the quick synopsis.  I called the lender at least once (sometimes twice) a week for status updates.  I rarely got any kind of satisfactory answers.  They lost the paperwork numerous times.  One episode about 6 months into the process, the lender asked for a form at 5 PM on a friday that needed to be notarized and returned within 24 hours.  Seller is in the hospital, managed to get it signed the next day, found a notary on Saturday, submitted the form.  On Monday the lender advised tha they had closed the case since they never received our paperwork.  It appears that they do not review weekend faxes.  And on and on it went with similar horror stories.

Another month later my seller is released from the hospital to return home.  She can’t get into the house.  The lender has sent out a crew and re-keyed the home to insure it’s safety!  This was about the final straw and I enlisted my friends as well as professional associates to help these folks that were being treated horribly.

First, we filed a police report for trespass and unlawful entry with the Sheriff.  I then contacted our state reps, Congressman and Senators with a lengthy explanation of the situation.  I spoke to some national bloggers who wrote about the story.  Also contacted the Federal Reserve and filed a complaint.

And it worked!  I was Fed Ex’d the keys for the home the next day.  The sellers and I received a call from the lender advising us that this case has been escalated and will be expedited.  While we never did receive an apology, the short sale was cleared to close two weeks later.  It closed just over one year from the date of the offer.  

PS:  The sellers are now doing well.  Cancer is in remission.  He has a new job.  They have bought another home.


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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. Gloria Gelet 06/10/2012 11:14 AM
  2. Joy Carter & Jeff Booker Brother and Sister Team 06/10/2012 05:11 PM
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Topic:
Real Estate Sales and Marketing
Groups:
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Short Sale Specialist Network
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Rainmaker
228,051
Marge Draper
REALTOR, Keller Williams Realty, Menlo Park CA
Keller Williams Realty Palo Alto

Gabe,  You know, we all strive for Win-Win but sometimes, and especially in short sales situations, it seems to be Lose-Lose.  I'm so glad to see positive outcomes for your clients.

June 11, 2012 02:32 PM
Rainmaker
205,358
Richard Zaretsky
Florida Real Estate Attorney
Richard P. Zaretsky P.A. - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY

And so it is in the land of short sales.  Thanks for the touching story Gabe.  You did a premier job for your client and NEVER GAVE UP!

June 11, 2012 04:40 PM
Rainmaker
267,315
John DL Arendsen
Real Estate Broker, Mfg Home Dealer, General Contr
TAG Real Estate Sales & Investments & ON THE LEVEL GC

This is a very bitter sweet story and one that I've heard all too often. Most lenders just use very low level if not totally incompetant clerical personnel who don't have any knowledge let alone initiative about what they're doing. They're just very small spokes in a very big bycicle tire. Sometimes I think that's by design. Keep your help as dumb as dirt and just keep shoveling papers til the cows come home and viola the problem goes away.

Just had to get that little rant off my chest. I feel all better now

June 13, 2012 01:37 PM
Rainer
56,683
Joey Fenwick
Fenwick Team FHA, VA & Jumbo Loans, Phoenix, Scott
Self-Employed, 1st Time & move up buyers,FHA, VA conventiona

And now....5 years later, short sales are being supported as a better way for the lender to go instead of foreclosing and they are making more money. Of course, you all knew this 5 years ago, it is too bad it took so long for them to wake up however, a lot had to do witht he many investors that owned the CDOs that were created from our MBSs and wrongly thinking this would all be over soon. LOL

June 20, 2012 12:49 PM
Rainmaker
124,583
Matt Robinson
Pensacola Real Estate (850) 292-4000
ERA Emerald Coast Realty

That's quite the redundant title.  What short sale isn't a nightmare? I've negotiated over 400, and I can only remember a few that were a pleasurable experience.

June 26, 2013 09:41 AM
Anonymous
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Rainmaker
1,681,269

Gabe Sanders

Stuart Florida Real Estate
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Additional Information


Professional real estate services for Martin and Saint Lucie County, Florida. Expert service for the towns of Sewalls Point, Jensen Beach, Palm City, Hutchinson Island, Hobe Sound and Port St. Lucie, Floria. For more information visit my web site at GabeSanders.com

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