You Have To Sell Your House To Me – You Have No Rights


cut money

I received an offer on a short sale listing for a client of mine. My client, the homeowner, purchased this property 8 years ago. At our listing appointment he and his wife gave me a tour of the home, showing me all the upgrades they had put into the home over the years. They had pulled out the family photo album sitting in the drawer of the china hutch to show me pictures of his retirement party they had celebrated in the backyard 3 years ago. The home is beautiful and it is apparent the love and care they have put into the home. This wasn’t just a house to these people, it was a home. As we leafed through the album there were pictures of annual Christmas get-togethers, Thanksgiving dinners and many other happy memories with family and friends that had taken place in this home. As he closed the album with shaky hands he raised his reading glasses to his forehead. He looked at me and explained the day that had changed his and his wife’s lives.
Past Due
The shaky hands were pretty much a constant through my visit with my clients but it wasn’t because of nervousness or anything you might think. He had been diagnosed with an illness soon after his retirement and now was in the failing stages of his life. Through the course of his medical care, insurance covered some but not all of his expenses. They had taken a second mortgage to help pay the remainder costs. They both had taken retiree type jobs to make ends meet in the past 2 years and now that his medical condition has worsened he’s not able to continue with the job. His wife still goes to work in the evenings and their daughter comes over during the day to help care for him. Behind on mortgage payments and unable to qualify for a loan modification the time has come to try to sell the home in a last effort to avoid foreclosure.

The home is aggressively priced for a short sale and after about 3 weeks an offer has come in. An unrealistic offer in my homeowners opinion. When asked for my opinion, I concur. My client counters the buyers offer and the exchange of opinions begin!

Since the time the short sale market has begun it has been a common misconception of many buyers and their agents and brokers that a seller does not have the right to NOT accept a buyers offer – no matter what that offer is! I received a phone call from the buyers agent and then another call from the agents broker informing me that my sellers by law had to present this buyers offer to the bank and that only the bank could decide if they would accept this offer. The agents broker decided it would be a good idea for his agent to call the bank and let the bank know that the seller was not presenting their offer.
Bank
I’m sure you can imagine how this made my homeowners feel. The key word in that last sentence being HOMEOWNERS. I can tell you that yes, this agent did call the bank and no, the bank would not even speak to the agent or the buyer, who also decided to call the bank.

So what is a short sale? question-mark

The borrower/homeowner has run into financial difficulties or a hardship. They are unable to make their mortgage payments and are facing a foreclosure in the near future. They still own their home at this point. They have in most cases defaulted on their mortgage payments and are unable to sell their property for the amount owed on their mortgage. They owe more than the current market will bear. In this case a borrower will list their home for sale at present market value and submit that offer to their lien holder and propose a short sale. The lien holder at that time will review the offer, the current market values in the area of the property along with other financial information and the borrowers hardship circumstances to determine if the they will accept the lower payoff of the mortgage. The lien holder, knowing that there is a high probability that they will be foreclosing on the property will determine if a short sale is in their best interest versus a foreclosure which in most cases will be more costly for the lien holder. Once the house has been foreclosed on – the lien holder is the seller. During a short sale – the borrower is the seller.

The concept of what a short sale is, is pretty simple. The actual process of a short sale is not so simple. You can learn more about short sales at Debbie Atwood Is Making A Splash In Snohomish County!

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One Response to “You Have To Sell Your House To Me – You Have No Rights”

  1. Modular Homes Says:

    Thank you for this blog, it is very informative and I will be sure to reference it when needed throughout our website once we add our resources section. Keep up the great blogging and thanks again.

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