Short sale approved and closed in North Grosvenordale, CT with IndyMac Mortgage services/ One West Bank and Fannie Mae.

Finding themselves severely upside down and crunched for cash, I received an email requesting assistance in short selling this clients home. We had a little hiccup, but also a positive surprise!

Single lien Indymac short sale, with PMI. After 90 days we received a low offer and ran with it. The valuation came in about 15k too high, and our buyer was not willing to budge and they walked. Having the number One West Bank wanted in hand, we were able to secure a new buyer in a matter of weeks!

With the bank's value now in line with sale price, the file went on to the MI company. Mortgage insurance companies can be a major stumbling block in the short sale process, often requiring large promissory notes and/or cash contributions.

I have seen this particular MI company ask for a $20,000 promissory note from a client on disability in the past, so I was VERY surprised when the MI company did not even ask for a contribution at all.

Here's the numbers:

Amount owed: $279,000

Sale price : $156,500

Closing costs allowed: $11,000

Net to lender: $145,500

Deficiency: $133,500

Now IndyMac and the MI company refused to release my client from the liability for the deficiency, and they would not budge on this at all. Sometimes, this happens. After speaking with their attorney, the consensus was that no one can predict the future and my clients chose to go through with the short sale, as it is better than having the foreclosure on their credit. Their attorney advised them it was better to go the short sale route and hope they don't pursue, then to let everything keep piling up on them month after month, as they would end up in the same position deficiency wise if they let the lender foreclose anyway.

Need to sell your home? Why settle for less than 5 stars? 2011 and 2012 Connecticut Magazine 5 star real estate agent!

Patrick