The property had a single FHA loan with Wells Fargo that was backed by the U.S. Department of Housing and Development.
The property had been purchased in 2002 for $70,000. The seller refinanced the property two years later and owed approximately $129,000 at the time of the short sale. The sellers had attempted to do loan modifications several times but ultimately decided that a short sale was the best option for them.
Wells Fargo did an appraisal prior to listing on March 21, 2012, and instructed Scott Gregory to set the price at $95,000. This proved to be way too high, as there was little buyer traffic through the home for quite some time and the home had aluminum wiring that needed to be corrected for safety and insurance purposes (cost of the fix runs about $4,000 to $8,000).
The Gregory Team finally convinced Wells Fargo to do another appraisal, and the price was reset at $70,000 on July 2. The seller reached contract on the property nine days later. After only 15 days, The Gregory Team received written approval of the Wells Fargo short sale.
“WOW! GREAT JOB! This is by far the fastest short sale that I've experienced!”
The sellers also received $750 in relocation funds and a full waiver of deficiency for the balance of the loan.
"We wish to thank you Scott for the super help on the short sale of our home," the seller said in an email to The Gregory Team. "I'm just so thankful I came across your ad on the Internet and called you. It saved us from certain disaster of a foreclosure. I was afraid I couldn't do a short sale on our home without any knowledge of it, but you walked us through it completely, and I would recommend your services highly to anyone that was in our position of being foreclosed upon ... period!
"Every update you informed me of, and (you) returned my every phone call as if I were a million dollar client," he continued. "Many thanks to you, sir, for helping us make the best of a tough situation."
The home sold for $65,800, with the seller’s lender paying the real-estate fee, property taxes due to closing, title closing fee and title insurance, and State of Florida doc stamps on the deed. The investor accepted a net of $58,896.40 in the approval letter, which represented approximately 46 percent of the loan balance.
Many homeowners today owe more on their mortgages than the home is worth. It’s a simple matter of math when home prices decline over a period of years. Negative equity has become an increasing problem in the nation, but especially so in the Pensacola area. With home prices decreasing, and with the economy struggling, many Pensacola home sellers have no choice but to negotiate with the bank to take less than is owed (which is called a “short sale”).
The seller may have hardships such as divorce, loss of income, unemployment or health issues. The homeowner may need to sell the home to ease financial pressure or avoid foreclosure. They should hire a real-estate agent with a proven track record in getting short sales closed. An agent such as Scott Gregory, who has four certifications in short sales and a proven history of successful sales.
The homeowner does not have to pay The Gregory Team at any point in the process, and the bank will usually pay the closing costs if they agree to the short sale.
If you are wondering how much money you might spend in continuing to make payments on a home that is “under water” on mortgages, visit http://shortorstay.com/
The first step is to speak with a Pensacola Short Sales specialist at The Gregory Team. Call now at 850-501-2574 for a free, confidential consultation.