PHH Short Sale
Michael Gaddis recently closed a PHH short sale in Moreno Valley, CA. The PHH short sale was for a non-owner occupied rental home. The property had one loan serviced by PHH. However, while the PHH serviced the loan Fannie Mae was the investor. Fannie Mae is notorious for being difficult to deal with whether for loan modifications or short sales. PHH used a 3rd party, Cartus Asset Recovery (“CAR”), to faciliate the short sale process. The short sale process for this property was not without problems. As is the case with short sales on nearly all rental properties the renter caused some issues. The first issue was the fact that the renter wanted very limited showing hours. This restriction on viewing caused delays in procuring and acceptable offer. The second issue was the fact that the renter, who had lived in the house for years, trashed the house. The condition of the house was extremely poor. Due to the condition of the house house the only real buyers that could purchase the property were investors. Recognizing opportunity investors flocked to the house and submitted low ball offers justifying their low ball offers on the condition of the property and over estimating what it would take to get the property into marketable shape. Finally, an offer was accepted and submitted at $114,000. Fannie Mae rejected the offer and countered at $119,000. The buyer accepted but days away from closing backed out of the deal leaving Michael Gaddis scrambling to find another buyer and facing a Trustee sale 14 days out. Michael Gaddis found another buyer who was willing to pay the $119,000 which the seller accepted. The new offer was submitted to CAR and Michael Gaddis was told that the sale was going to placed on hold. Miscommunication between CAR, Fannie Mae and the Trustee caused the property to erroneously go to sale. However, CAR stepped up, recognized the mistake and convinced Fannie Mae to rescind the sale. Shortly after the sale was rescinded the 2nd buyer walked leaving Michael Gaddis scrambling to find another buyer. By then, the market had swung upward and CAR notified Michael Gaddis that the next buyer must be willing to pay a minimum of $130,000 to get approved. Luckily Michael Gaddis was again able to procure a cash buyer who was willing to close rapidly. This time, the buyer stuck and the property sold on November 27, 2012 for $130,000.
This PHH short sale is a testament to persistence. Michael Gaddis never gave up and overcame every obstacle, even a foreclosure sale, that was thrown at him.
A key element to the short sale timeline, and one that can affect the time periods mentioned in this article, is the proper selection of a real estate professional. Homeowners need to realize that not all real estate professionals are the same. A homeowner’s friend or acquaintance might have a real estate license but that does not mean that they are qualified to properly handle a short sale. For more information on how to select a real estate professional for a short sale please click the following link: http://sdshortsaleattorney.com/how-do-i-find-a-realtor-for-a-short-sale/.
Jenny Winford July 23rd, 2017
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