Big State Home Buyers prides itself in quick, easy closings. However, sometimes that is not the case! Through no fault of our own, we once had a file being processed for almost two years. The house was in poor condition, but there was also issue after issue that came up. We learned a lot, were able to close, and the seller was happy. Watch the video for the full story!

 

Brian

0:00:00 One of the things that makes Big State so great is that if we can help, we do help.

[Testimonial: The Longest Sale Ever]

Alison

Hey, guys. Today we are going to go through a story of a short sale that took how long?

Darren

A year and a half.

Alison

This is the longest file that we’ve had at Big State Home Buyers, and Darren just closed it two weeks ago. So we want to tell you guys the story. So go ahead and just introduce us to the house. Where did it come from? Whose was it?

Darren

So in the summer of 2013, our seller gave us a call, and he was having trouble making payments on his house. It had been leased out, and the renters were— they had trashed the house. And he called for help, basically, to see what we could do. Well, come to find out the house wasn’t really worth as much as he would like it to have been, ’cause it needed so much repair. So really the only thing we could have done to prevent him from going into foreclosure was to put it out as a short sell.

Brian

Okay, so what I know about Alief Place is that it is a short sale. Big State Home Buyers rarely does short sales because they are so time-consuming. Once in a while we’ll do one for a house that’s in really bad condition, that we think will have a better chance of getting a discount from the bank. Well, this house had a line of credit, a loan on it, and the property was in horrible condition. And we had a lot of cash offers that were a good $20,000 below what was owed on the house.

Alison

He basically called us because this was his only option, so it wasn’t like he was kind of shopping around. He knew he had to sell it to an investor from the start.

Darren

0:01:43 Right. He didn’t want to put the time and the effort into fixing the house and repairing the house to a point where it would sell. He didn’t have that kind of money to do that. And so his only option— you’re right— was to short sell the house.

Alison

Tell us a little more about short sales in general.

Darren

So a short sale is when you negotiate with the bank, the mortgage holder, for a lower payoff than what’s actually owed.

Brian

So in a short sale, the current owner— the original borrower—is the one who’s selling the property with bank approval at a lower price than the loan. So if the seller owes 100 and they can only get 80 for the property, then they have to get bank approval. But it’s still the original seller who’s selling the property with bank permission. A foreclosure is once it’s owned by the bank. So the bank has taken it back. They’ve taken possession, changed the locks. It’s gone through the auction process. And then they usually hire an agent that’ll determine the value of the property, put it on the market, and the bank is the seller. So the difference is who you’re dealing with.

Darren

We spent quite some time negotiating with the bank. I found four or five different buyers that they did not like, and they would not tell us why they didn’t like that buyer.

Brian

They’d take it to underwriting, and they’d go to a manager, and they’d get an appraiser, and then they would tell us it was worth more. And then we’d send somebody out there, ask them to send someone to see the inside of the house, and send them contractor bids, and then they’d evaluate it again. We had been to the underwriters for more than a year. They kept denying the short sale. And we went back to the seller and we said we’ve tried everything we can, and we cannot get them to take any sort of reasonable offer on the house.

And so we went to the seller and we asked him, “Do you want us to continue to try to sell this property, or do you want to go ahead and give it back to the bank?” Because he was fed up. A short sale requires a ton of work on the seller’s part as well. Lots of followup. Lots of paperwork. And he asked us to continue, and at that point we knew that we weren’t gonna make any money, not even a commission. We just wanted to be of service to the seller and get it done.

Darren

But we stuck through and we got it taken care of and just closed.

Alison

0:03:53 Would you ever do it again?

Darren

Absolutely. My pleasure.

Alison

If you guys have a house and you’re trying to get underwater, or you owe more than it’s worth— Go ahead. Answer it

Darren

Oh, I do have to answer this.

Alison

Oh. Bye, Darren. See, he’s always working. Working hard or hardly working? I don’t know. If you guys have a house and it is in a similar situation as that person, then you can call us, Big State Home Buyers. 713-909-4119. We can help you out. The link is down below. Thanks for watching.

[www.BigStateHomeBuyers.com]

[713-909-4119]