This property has presented quite the experience. My clients had purchased the property back in 2008 shortly after the property was built. Later, they refinanced and somehow the property appraised for over $135K, which the bank quickly lent my clients. Fast forward to October 2013 and my client's finances were hamstrung by an awkwardly large house payment. The approached me and asked if we could do a short sale.
A quick glance at the market showed that their unit was worth $125k in good condition. But, it needed some minor TLC. Also, in order to compensate prospective buyers for the hassle of having to deal with a short sale, we decided to discount the price a little further list the property at $115,000.
The short sale process proceeded as expected and we received a few offers. It took us several months to get an approval and in April we finally received one. At that time we began to work towards closing the purchase. However, in a weird turn of events, the buyer forgot to pay her student loans during the contract period and her credit was destroyed mid-process. It was a serious disappointment.
So we put the home back out in the market. We reduced the list price to $109K to solicit another offer. We recieved one and again mid-process, the buyer couldn't quality for a mortgage. This was getting to be a very annoying pattern.
After a quite month or so, we reduced the price again to $105K to attract another buyer. Finally, in late July we received a cash offer. They offered $106K. The bank took a couple months but ultimately approved $108K as the final price. The buyer agreed to pay that amount and we closed quickly on the property.
If you are needing to do a short sale on your property, CONTACT ME, and lets review some scenarios that may help your situation.
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