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Surprise…. it’s a bloated balance, then a lien! Doh!

31 Mar

Since bringing in the realtor on the Vassar short sale, things have been going a little smoother, process-wise at least. She’s done short sales before so she knows the ropes; but some recent highs and lows now threaten the textbook short sale deal I was going for.

First, after about a week with the new realtor, she called me and said the balance was lower than I thought. She said she called Citi to verify the balance and was told it was only $33K, much lower than my estimate of $53K. She suggested we just drop the short sale and do a straight purchase since this balance wasn’t much higher than my original offer. I tentatively agreed, although I was still a bit skeptical. I told her to first confirm and get it in writing before we drop the short sale. The next day she called and had quite a bomb. The payoff was not $53K as I suspected; it was $60K! (Apparently the different depts at Citi don’t communicate until a payoff is requested). So now we are back to square one with the short sale. With a higher balance though, the bank may want more to mitigate their loss.

A week later, the realtor called with more news (notice I did not say “good”). The initial title search revealed three liens. One is a lien that was apparently discharged in a bankruptcy. We need the seller to find the release paperwork to clear this one. The second one shares the same name as the seller although it’s pretty obvious it is someone else so that shouldn’t be a problem. The third one may just kill this deal if anything else goes wrong. It is a lien from the govt for $10K, and charging interest daily! Despite this blow, I think this deal is still kicking. I just have to adjust my offer and pay this lien at closing. Problem is that this lowers the bank’s share which makes short selling this loan even less attractive to them. We’ll just have to wait and see. At this point, I don’t have too much in this deal other than time so I have nothing to lose by pressing forward.

Wish me luck. Looks like I’ll need it to make this happen. Did I mention I hate short sales?

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1 Comment

Posted by on March 31, 2011 in Uncategorized

 

One response to “Surprise…. it’s a bloated balance, then a lien! Doh!

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