I just withdrew a short sale listing off the market. It was a typical short sale. The owners were having a struggle making their payments, and then one got laid off from work. The bill collectors start calling, and they start getting behind in the mortgage. I meet with the owners and gave them their options.
1. Try to work on a Loan Modification.(which they had been doing.. unsuccessfully) , OR,
2. Start the short sale process.
They had tried, as many do, to do the loan modification on their own with no success. I did not “do” their loan modification. I only gave them advice on preparing the documents, consistent follow ups, and patience. I prepared a preliminary BPO of the home to foreshadow the future BPO the bank would do when an offer came it. At the same time I listed the home, and worked on getting an offer for a short sale package.
This week their lenders responded with an approval of their loan mods.
1. Bank of America cut their interest rate from 6% to 2% which dropped their payment from 1500 to 1000ish. Fixed, interest only for 5 years!
2. Suntrust, dropped their interest rate on their equity line from 5% to 0%. which lowered their payment from 550 to around 200ish.
3. All their missed payments were rolled into the balances, and now their combined payment is around 1200 a month. This is less than what they would have paid for a comparable rental property.
I didn’t make any money on this deal, but by helping my customers, and focusing on their needs I have saved their home. Which is priceless!
Happy Holidays!
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