Recent Short Sale Experience

[Eddie P.]

Today I was informed the seller on a short sale I had been waiting 4 months for, will not sign the approval from the lender. It was a good deal for him, no deficiency or promissory note, just sign and walk away. Normally these things don't bother me, since I get more rejections than accepted offers in my area, but I passed on another accepted REO offer since this one was more profitable. Now, I know there is no deal until the ink on the HUD is dry, but I was assured by the listing agent again, last week, the seller was motivated and needed to sell. So now the story has changed and the seller has been stringing the agent and me along as a foreclosure delay tactic since he is collecting rent. The seller basically told the agent his attorney could delay the process another 6 months and that's another $12k in rent for him. His attorney has delayed this case now 3.5 years(42months @ $2000 p/m= $84,000), but wants to squeeze another $12k out of the house. He no longer cares about a deficiency or if it goes to foreclosure, so there is no reasoning with this person. The agent is furious and plans to sue to collect his commission since the seller accepted the offer and he was able to get an approval from the bank. I probably will not pursue it, since this guy already made it clear he does not care of any financial consequences.

Out of the 3 short sales I have had contracts on, only 1 has closed. The second one fell apart last month when the buyer did not show up to closing. They were going to try modification again. That didn’t bother me, I hope they get approved.