House #28: Officially Ours

December 6, 2011 · 9 comments

Wow. I mentioned in my last post how the purchase of The Full House was coming down to the wire, but I had absolutely no idea how tough this one would be to close. The listing agent (who was negotiating the short sale) was still trying to get approval for the deal 90 minutes before the house went to auction after the second mortgage holder threatened to back out of the deal!

The problem was that there were two mortgages on the property, and the first and second mortgage holders couldn’t come to terms on how much the first mortgage holder was going to allow the second mortgage holder to make on the deal. They were literally fighting over $117, and neither wanted to budge. Ultimately, the second mortgage holder realized that if they didn’t agree to the deal (and $117 less than they wanted), they would have walked away with absolutely nothing — that was enough to convince them to approve the deal.

So, at about 1:15pm yesterday (15 minutes before the deadline that the first mortgage holder gave us), we got the paperwork signed and the funds wired to the banks. Anyway, the house is now ours and rehab will begin in a few days.

We’re hoping to keep the rehab to about $15K — including a major (but not full) cosmetic renovation. Unfortunately, I didn’t get pictures yet, so those may have to wait a bit…

9 responses to “House #28: Officially Ours”

  1. Wow. $117.

    I’m glad it worked out for you. I look forward to the pictures.

  2. ezra says:

    You gotta call it that!

  3. Mark says:

    This seems like a mission impossible approach. I’m glad you managed to solve it out. Good luck with the rehab

    M Mark

  4. Luis says:

    never a dull moment in real estate…

  5. The real estate market is tough right now with buyers and sellers scratching for every dollar.
    It makes the life of a realtor interesting

  6. Matt K says:

    Ahhhh, the joys of short sales….. been there done that.

    It always seems like there is some last minute drama with every short sale we’ve done.

    I know you buy a lot of REO’s. Do you do many short sale deals too??

  7. J Scott says:

    Hey Matt –

    This was our first short sale purchase…but given the deal we got, we’ll definitely start pursuing more SS deals…

  8. Stephanie says:

    Hi J- In your opinion is it worth it to make offers on short sales? or too much trouble? I have made multiple offers and can’t seem to land a property. Even when I make full price offers. What’s your secret? Are all cash offers the only way to success in this market?

  9. John Miller says:

    I am agreed with Johnny Brooks that “The real estate market is tough right now with buyers and sellers scratching for every dollar.” it’s really true that the real estate market is very tough for home buyers and sellers. All the buyer and seller are burgening for a penny.

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