Archive for month September, 2008

Success Story of the month

Tuesday, September 30th, 2008

Yes, short sales can take a while to work through, and here is an example.  Back in May, I published an article about Interviewing the agent who will represent you.  The transaction that inspired that story will close this week.
The controversy at the heart of that article was whether to choose the “expert in the neighborhood” or the “short sale expert”.  It was a high-end home in a prestigious neighborhood, and the Seller was worried about choosing between The Neighborhood specialist (Agent) or an agent outside his neighborhood who specialized in Short Sales. Well, the client chose me, the Short Sale Specialist.

The transaction took months, including several long weeks of negotiations with the Lenders, multiple competing offers with contentious agents, and lots of care making sure the Seller and his Lenders accepted an offer, did not foreclose on the house, and protected their financial future.  The transaction is closing this week, both lenders will receive a fair amount on their loans, the buyer gets a good house at a great price, and the seller gets out of his oppressive mortgage owing nothing and no more damage to his credit report.  The only ones who lost out were the foreclosure lawyers.

And the client is thrilled.  To quote the survey I received back from him: “Sometimes you look back and you know you’ve made some good decisions and some bad ones.  My wife and I often commented to each other that we chose Adriana to handle our sale.  …looking back at the complexity of this type of transaction, there is no way a ‘normal’ agent could have helped us with all the things that came up.”

This is the kind of success story I got into the Short Sale specialty for.  I help everyone reach a mutually beneficial transaction, and know that I’ve done a great job. Even more important in the long run: giving someone a second chance to start over financially, learning from past mistakes.

 If you are looking at the need for a short sale, please make sure you do your homework and select an agent who knows this process, a Short Sale Specialist.  Give me a call and let me tell you how I can help you.  With me, you can expect extrordinary experience and service, as well as caring attention to your personal needs – like this client’s financial future and getting a second opportunity.

Why Do Short Sales Fall Through? Part 4

Wednesday, September 3rd, 2008

For the time being, this will be the final installment in my series about why Short Sales fall through.  I will likely revisit this topic in the future, as I hear more stories, but I plan to move on to other topics for the next few posts.  The purpose of this series is to contrast my approach with those agents who have recently come into the Short Sale market in order to keep their numbers up.  As a Short Sale Specialist, I have learned to avoid these mistakes that inexperienced agents have made.  I keep your transaction on-track.

As new agents move into this market to keep their numbers up, the ‘numbers’ are my topic for this article.  They are another reason why Short Sales fail, but in this case with even more disasterous results for the seller because the agent was not prepared.

I read about a transaction where the listing agent did not know that they were responsible for getting a “HUD-1″ to the lender before closing.  The HUD-1 is a preview of the closing statement which contains all the numbers that everyone is paying or gets out of the transaction: the lenders, the seller, the lawyers, the agents commissions, all the fees, etc.  The agent was caught unaware, and needed to get it done quickly.  The HUD-1 was prepared hastiliy and sloppily, showing the lenders getting the full amount of their loan and a negative net to the seller.  This would mean that the seller is bringing cash to the closing table – contrary to the purpose of a short sale.

This never happens to me.  I know all about the process, and have the HUD-1 prepared well in advance.  Beyond that, I have the taxes checked and the property investigated for leins.  This saved several transactions, but let me tell you the story of just one.

The closing attorney called me a week before scheduled closing with the information that the property had two leins – people had filed legal paperwork saying the property could not be sold if they did not get their accounts paid by the seller.  This would derail the closing if not dealt with.  We had 4 days to deal with the problem, and two of them were weekend days.

We found that one of the leins had already been satisfied, and with some effort, got it lifted.  The Seller had to find a way to get the money to pay the second one, get a bank check or money order for it, and present it in person to the lein-holder.  And he had to get a signed letter from them saying the lein had been settled.  But the amount of the lein was more than the Seller could manage.  We negotiated a reduction, that the paperwork would be ready when he showed up, and that his credit report would be cleared.  He managed to get all this done on the morning before closing, brought the paperwork to the closing table, and the transaction went through.

Imagine a new agent working their first Short Sale faced with this situation.  The agent above, the one who did not know about the HUD-1, would not have known about this until the closing appointment.  Very few agents would go through the title clearing process far enough in advance to find out about this deal-killer.  I do.

Let me help you with your short sale process, so I can help keep this type of thing from happening to you.  And if you have horror stories like this, please share them with us all by posting a comment.