With just one phone call, my buyer saved about $7,500. And it was a very simple phone call to make.
The Background
We have been working on this short-sale for 10 months now. The sellers have a law firm who is negotiating with the bank, (but as I’ve learned, just because a short-sale negotiator is involved doesn’t mean this will be a smooth process).
We are about 3 weeks away from finally closing when we were hit with the news that the seller’s lender will not cover the delinquent homeowner association dues that add up to about $7,500.
The buyer was told that they could raise the purchase price to cover this delinquency. But that didn’t sit well with the buyer. Obviously it’s frustrating for a buyer to have to pay this.
The negotiator said they will try to negotiate with the bank. We weren’t too optimistic about this approach.
The Fix
After discussing the options left for my buyer, my buyer thought it wouldn’t hurt to talk with the president of the homeowner association herself (thinking the negotiator had already done this). In about two minutes, she had the president agree to waive the outstanding owed dues.
She passed this to the negotiator and now we are just waiting for the finalized paperwork.
The president said he was never contacted. He should have been considering the HOA is a lien holder that the law firm should have been negotiating with as well. So just because you have a law firm who is negotiating the short-sale, buyers still need to be very proactive.
Lessons Learned
- This is my first and my last short-sale.
- Just because you have a law firm negotiating doesn’t mean it will be a perfect process.
- Most short-sale sellers are not engaged, but at least make sure your buyer is engaged in the process.
- Sometimes the easiest solution is overlooked.