Bear Traps of Short Sales

My office is involved on another infamous lender short sale. In this case, I represent the seller.

When my clients called me to list their home because they were upside down on their mortgage, we talked about all the necessary things that needed to be done to get them out from under their mortgage. Well, they did all that we agreed upon and more. The home sold in less that three weeks to a cash buyer. All the comparable sales were within line of the sale price. The sellers along with myself and the selling agency had supplied all the requested documents nearly as soon as asked for by the CORPORATE bank. Well, I received a message from the CORPORATE bank that the amount that was submitted as fair market value was not enough and they said their “investor” would not take anything less than an amount that was proportionally higher than was ever expected. It was a good thing I was seated when I read the e-mail from the CORPORATE lender, as I think I would have collapsed.

What I can’t get my brain wrapped around is this; how can people sitting in an office somewhere likely 2,000 miles away decide what a home is worth in Mason City?

Be careful…. there may be a bear trap near you.