It is always a good day when we close a successful short sale transaction. This one in Heritage Harbour in east bradenton, was a wells fargo first mortgage and a second mortgage with Bank of America.
What was unique about this deal was how challenging the two lenders were to get to an agreement. The time frame for approval from contract date to bank approval was 93 days. Pretty typical time frame for a short sale with Wells Fargo.
What was illogical to me was wells fargo not cooperating with the second position lender (bank of america) to work out a solution for settlement. Getting these two banks to agree took a few weeks. In the end the second lender agreed to the terms of the first.
Wells Fargo only took a loss of 10% of the mortgage amount, yet they challenged the second lenders approval payoff who took a loss of over 90%
Here is a typical time-line. Offer is submitted to both lenders bank of america and wells fargo. Bank of America was first to conditionally approve the sale, with a demand for a settlement of X. Meanwhile, Wells Fargo approves the deal, subject to bank of america accepting a 3,000 dollar payoff.
3,000 dollars was a fraction of the balance of the bank of america loan. So then the process of getting these two lenders to come to a compromise. Wells Fargo was unreasonable to the second lender to bank of america. And Bank of America was crazy to think that wells fargo, would allow for a larger than typical payoff.
Perhaps it was the Bank of America's first short sale negotiation. LOL!
The end justify the means, and in this case, my seller was able to avoid a foreclosure and sell his home. The buyer got a great deal on a great short sale in bradenton.
My suggestion for anyone considering short selling their home in Bradenton or Sarasota is to make sure you have patience, a great real estate agent, and a dedicated attorney all working together to get the sale approved, and closed.
When you need the help of a FULL-TIME, Top-Producing, agent in Manatee County please now I am here to help.
Call/Text/email me anytime. I am an experienced agent that can deal with short sales, bank owned homes, vacation homes, and everything in between.
Joe Murphy, Broker-Associate
Coldwell Banker Residential Real Estate
Joseph C. Murphy, Broker-Associate, BS, Previews Certified