We just got approval the purchase another short sale, and this will most likely end up being House #37…
The reason for the house name is that we’ve had an interesting short sale situation with this house. Remember, a short sale is when the seller/homeowner asks their lender to allow them to sell the house for less than what is owed on the mortgage; the lender then (usually) forgives the rest of the mortgage debt in order to not have to foreclose on the property. Sometimes, the lender offers the seller a small amount as an incentive to actually go through with the deal and to help with moving expenses.
Well, in this case, when the lender approved the short sale at our offer price, they offered the seller $20,000 to move! This was without the seller or the agent even asking. Considering the sale price of the house is only $95,000, the lender voluntarily offered up more than 20% of their proceeds to give right back to the seller who hadn’t paid their mortgage in more than a year and was defaulting on their loan.
On top of this, the sellers started to have second thoughts about moving! They don’t want to have to pack and find a new place and were actually considering turning down the deal, which would have meant that they’d lose the $20,000 incentive and then probably get foreclosed on in a month or two anyway. Luckily, their agent was able to talk some sense into them, and (HOPEFULLY) they’ll be willing to move by the closing date, which is next Friday.
I’ll post more about this house next week if it turns out that the sellers actually decide to go through with the sale… 🙂