Successful Short Sale right before auction

My client was told in July they were going to foreclosure auction in days. They moved out of the house. The home did not go to auction and they called me in October about doing a short sale. We got into contact in 5 days and had 3 offers – the highest was $20K above list. There were 2 Wells Fargo loans. After losing over a month going the HAFA route and being denied we were up against the wall time wise.

The foreclosure sale date was set for Jan. 2nd. Over the holidays we finally got 30 days to close and the foreclosure was stalled to Feb 2 (with no more extensions allowed).  Wells Fargo was truly better than any other lender on a short sale that I have worked with.  When it looked like we needed 1 more day on the 2nd approval (just in case) we did not close Wells Fargo Home Equity gave us another month.

The buyer on the other hand was out of control. Asking for $30K repairs, switching lenders mid-stream (and buyers agent chose not to tell me) and taking their time with new lender disclosure requirements. I can’t stress enough how the buyer needs to be willing to take coaching from advisors – namely the Realtors and not from “friends”.

We were lucky to have a title company (Old Republic) that did everything to pull off a miracle. Also the lender the buyers went to thanks goodness knew his job and helped too.  He got the funder to suggest the loan package be deliver on the weekend to her house so we could fund Monday AM and record in the later afternoon. Even though all deadlines were off we still closed on Monday January 31.  Today, February 2nd would have been the auction date.

Seller now only has a short sale on his credit but not a foreclosure. YAHOO!!!

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