Home > Uncategorized > Seller Short Sale Greed Leads to Foreclosure

Seller Short Sale Greed Leads to Foreclosure

Imagine this:

You have been working on facilitating a short sale request with your Seller’s lender for 4 months. You have exhausted every effort in keeping the Buyer interested in the property and have successfully arranged a reasonable agreement with the Seller’s lender to approve the short sale and close it within 45 days.  Excitedly, you call the Seller to tell him the good news.  The Seller, however, is not as excited as you — and you sense that what he’s about to say isn’t going to be what you anticipated hearing.

The Seller begins by saying that he can’t possibly move all his belongings out of the house in just 45 days.  He continues on by saying he is concerned about the costs involved with the move and he would like the Buyer to pay for it.

“We discussed the timing and the expenses several times,” I reminded the customer.  “You even got moving quotes from 3 companies,” I rambled on.

None of this meant anything to him.  The bottom line was that the Seller felt that he was entitled to a longer closing date and a moving concession.

If anyone has read my other blog entries, you may recall one entitled The Profit of Yes vs. the Power of No.  In that article I mention that you should always try and remain positive and stay away from giving a “no” response as a knee-jerk reaction.

So, in the spirit in my previous entry, I told the Seller that I’d be happy to discuss an extended closing date as well as the financial aspect of the move with both the Seller’s lender and the Buyer.

First, I call the lender who agrees to allow a closing in 60 days and agrees to allow the Buyer to pay for the Seller’s moving expenses as long as it’s disclosed on the HUD as a POC item (need to confirm with the underwriter that this is “ok”).  Wow, I was surprised.  I thanked the bank for their leniency and thought to myself that I am “one for one” and now I just have to convince the Buyer.

I called the Buyer’s agent who was somewhat understanding of the Seller’s request(s) but quickly reminded me that the Seller has not been making mortgage payments for the past 4 months and would not be making them for an additional 2 months (if the Buyer agrees to an extended closing)  and should have more than enough money set aside to pay for moving expenses.  The agent continued on by saying, “This is just poor planning by the Seller.”

The Buyer’s agent was preaching to the choir.  Inside my head I agreed with everything he was saying.  But, as the Listing agent I can’t outwardly agree with the statement … I am merely trying to get the deal done!

Anyhow, to make a long story short, the Buyer refused to pay the moving expenses and the Seller refused to sell the property.  While there is an argument that can be made regarding specific performance by the Seller to close, it’s probably somewhat irrelevant as the Seller was foreclosed upon just a few short weeks later.

This is one of several examples that I can give where the Seller, who admitted having access to money to pay for the move and was merely trying to negotiate the best deal possible, let his greed get in the way of logic.  No matter what I said to him in the way of educating him about the ramifications of a foreclosure, his decision was to allow it to foreclose.

If anyone has had a similar experience to this, I’d be interested to hear about them!

If you’d like a Short Sale expert to package and handle all the paperwork and communications with the lender in an attempt to facilitate a short sale on your behalf, at no out of pocket expense to you, contact Rick Schuster at   561-893-0077   or rick@homeguardiantitle.com.

Advertisements
Categories: Uncategorized
  1. Amy Allen
    January 14, 2010 at 9:49 pm

    Amazing to see how some will just waste an opportunity like that.

    I’ve enjoyed all your blogs. Thank you for sharing.

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: