When do you quit trying with a Short Sale?

What happens when you receive a Buyer's offer for a home listed as a Short Sale and initially the Lender says "NO"? If I'm representing that Seller, the offer that has been submitted is an offer that I can support, believe in and I will fight for its approval. This case story has topped my experiences of drama for a distressed Sellers property here in South Florida. And the fight goes way beyond that first "No".

Grab a seat and let me tell you the story.

1st Buyer's offer:

This first offer submitted was rejected by the Lender. I went back to the Lender with my analysis of why they should accept the Buyer's offer and finally I got them to see it my way. Great, I said. Oh, the fun was just beginning. This was a Buyer who wanted everything her way, no give and take through the whole process. The closing was scheduled and a walk through was performed. At the walk through the Buyer determined that there was some furniture left behind and it must be removed by tomorrow as the closing was scheduled for the following day. . A day that the Seller had tried to get them to extend by two weeks to allow for her to have more time to get out her being a distressed widowed woman. The Buyer said, absolutely not..."....I want in the house on such and such date...." Okay now what? They demanded that the furniture be removed. The furniture had to be out by the next day. Well, I got my husband and son to agree to come with me to move the furniture out to curbside. We thought it was going to be an easy job...just move some furniture out of the house. Not this furniture. It was huge and couldn't be carried through the front door. My husband had to actually tear it apart with a hammer breaking and prying the wood and glass apart. What a job! A few hours later we were done, went home and I looked forward to a closing in a few days or so I thought.

Yes, you guessed it, the closing never happened. The Buyer's financing fell through at the last moment. In fact, the Seller was rewarded the Buyer's deposit for being in default of the contract. In fact, the request to cut the check has just been forwarded to the Title company this week.

2nd Buyer's offer:

Oh, finally a new Buyer...yes, let's close. New offer approved by Lender All went well until we got to the inspection and the Buyer wasn't willing to pay for what was necessary with the needed repairs. Good bye Buyer.

3rd Buyer's offer:

I'm sure this Buyer will follow through. New reduced offering price approved by Lender. Again, we got to the inspection and the excess repairs ultimately scared this Buyer too.

4th Buyer's offer:

By now, I"m really getting tired and thinking about giving up. But then I think, how could I give up on my Seller who's counting on me, who has faith in me. So I don't give up. I try again. A lot of time has lapsed by now, you can imagine. New increased offering price approved by Lender. This Buyer came up against the same situation as the other Buyers did; that of needed repairs. The difference? This Buyer's business was qualified to make the repairs himself and wasn't concerned at all with the needed repairs and said, "....sure I'll make the repairs...." This was to be done before closing as this was a FHA financing. What needed to be done?:

• algae filled pool needed to be cleaned and functioning
• wood rot on exterior of home needed repair

The Buyers made repairs but oh no, now the closing date was nearing as was the Auction sale date. The Lender wasn't ready and expressed doubt in being able to close. You've got to be kidding. HELP ME!

Quickly, I suggested to the Buyer's Agent that they find a new Lender and referred them to a Mortgage Broker that had saved the day for me on a Short Sale from a few months ago when a Buyer's Agent and their Buyer couldn't get approval at the last moment and went to this new efficient Mortgage Broker.

Now back to the Lender. I expressed I needed two more weeks to get the Buyer closed. "...NO..." was their response. This file had been postponed through all of these Buyers and they weren't going to budge another day. We were three days from the Auction Sale date. And back and forth and they weren't budging saying that they're going to foreclose...forget the Short Sale.

Here it comes again, that gnawing feeling of giving up and throwing in the towel. No, I just can't do it....we're so close. Back and forth conversations via email with the VP of loss mitigation. We're now at the day before the Auction Sale date,

• "....Okay, if the Buyers deposit a non-refundable deposit of $4000 to us we'll delay the Auction sale date and extend closing until Sept 30th.
• I got them down to accept $2000. The Buyer wired the money. This Buyer wanted that house! If they closed the $2000 went towards home. If they couldn't get approved, they'd lose the money.
• The new miracle worker Mortgage Broker got Buyers approved to close, having completed it all in just two weeks
• And we closed this past Monday.
• Yes, you heard me....WE CLOSED!

So the next time someone asks you When do you quit trying on a Short Sale? Tell 'em....we don't!