It took last-minute heroic moves by all involved. Short-sale. Basically the whole transaction was redone in a week, after a 5-month escrow. Below are quite a few details for future reference; maybe we’ll revise at a later date. See the newest Lantern Village Single Family Homes for Sale, click here.
Thursday, 04/12/2012: I’m the buyer’s agent, we are almost 5 months into it, short-sale, tenant occupied, FHA loan, TRICKY! We were supposed to close today, yesterday the mortgage insurer for the buyer’s approved loan denied by the MI based on occupancy requirement (they imagined “the buyer was just helping a neighbor, only to sell it back to the neighbor” and wasn’t actually going to move-in per the loan requirement) even though the current tenant’s lease agreement and tenant notices were disclosed, tied into to the contract, and buyer’s move-in date is well within the loan terms of occupancy after close of escrow… the possibility of the entire deal unraveling was real. Seems there always is something way out of left field, the only time you’ll ever see it once in your career, and at the last minute with every short sale transaction!
Here comes the heroics…
so the loan officer (a HERO that has proven himself with several of my happy clients) had to completely resubmit to another investor, basically get a new loan for the buyer in a week, and is now trying to prove conditions (explanation of deposits, handwritten letters, etc.), with two days to go, from the buyer that worked until 9pm Tuesday night and back at work at 5 am Wednesday morning (Doctor, in surgery, are you going to stop him from that to supply a bank statement?), the short sale coordinator got a 1-day turnaround on 1-week extension (to 04/20/2012) from the second short-sale lender last Wednesday for this Thursday, escrow had title re-record the deed (ex-spouse issues) in a 4-hour turnaround, Escrow officer was still clearing conditions morning of last day of extensions from the first and second short-sale lenders, and put a rush order to record the sale in time. The team effort made it happen in time at the last second!
Basically at the last minute the whole deal was redone in one week!
Happy for the Buyer/New owner, he got a smokin’ deal on the price for the property and the maximum credit allowed from the seller for his closing costs, final price $22,800 under appraised value! From a property investor point of view 33965 Malaga Drive is nearly cash flow positive now considering the new mortgage payment, insurance, taxes, and the current tenant’s monthly rent, with only 5% down payment; his cash out of pocket is likely to pay for itself and triple in 10 years, not to mention immediate tax write-offs, and the significant future capital gains.