Here we discuss all matters Real Estate, with an emphasis on Tucson Arizona. We welcome your story ideas. Via Realty is a boutique real estate company founded on Jan 1 2000 by 2nd generation Arizonan Wayne D Anderson, a Realtor since 1989. www.ViaRealty.com 520) 327-1550. Equal Housing Opportunity.
Saturday, February 12, 2011
One Short Sale Experience with FNMA
Per the contract for a short sale, the inspection period would not start until we received a notice of approval of the short sale from the asset manager for the mortgage holder (investor). As a rule, buyers do not want to spend money on inspections and an appraisal if they do not know if they can actually buy the home, so that is a condition in a short sale contract.
The contract price was $185K.
Long story short, after about 2 months from receipt of the buyer's contract, the asset manager finally told us that FNMA approved the sale but would only give us one week to close, if not, the home would be sold at auction. The Buyer, with little time for inspections, appraisal, and title work, cancelled the contract. FNMA took the home back.
Almost four months later, the new owner, FNMA, put the home back on the market for 189,900. After languishing on the market for a few months, with several price reductions, it is currently priced near 170K, still without a buyer. This is almost seven months after the home could have been sold for $185K, in July 2010. Seven months of mortgage payments lost, seven months of interest lost.
In fairness, the bank asset managers and FNMA have a big job to do, and are clearly overworked and over-extended. There is not enough staff available to do this important job. But situations like this do avoidable damage to our market and neighborhoods. There have been steps taken to streamline the process but it does not seem too evident to me. Buyers should have a reasonable opportunity to buy a property from a distressed seller without unnecessary roadblocks and delays from the system.
It just seems too easy to take back a property and sell it for less, months later.
- ▼ 2011 (3)