This is a project that I am coaching. This is an interesting one because it really illustrates what short sales are really like for banks. This property has a first lien of about $385K and a second lien of about $40K. The bank accepted a short sale offer for $160K. The buyers took longer to get their loan and in the meantime, the bank had to pay an additional $5000 in property taxes.
As the new closing date approached, the property was hit with 3 new liens from the owner's debts. The owner paid off one and the realtor negotiated the 2nd one down to 30% and is planning to pay it from her own commissions. The final lien is in negotiations. The bank refuses to pay any more money, but they did agree to not charge the seller's a closing per diem as long as this did not take too long. Now it's up to the realtor to make it happen. We'll see what happens next.
What I like about this deal is that the obstacles kept coming and all parties kept perservering. The buyers kept getting stuck with lending and kept knocking on doors until someone said YES. The realtor kept getting hit with financial obstacles and kept negotiating them out. She now has a good experience in dealing with banks on short sales. It's all good.
