Active Adult Community Short Sale Nightmare

Short Sale NightmareThis is a nightmare that I finally woke up from and everything ended up okay.  I’m going to describe this nightmare by simply outlining the facts.

First of all, be aware that when dealing with a short sale, no phone conversations take place between the lender and the selling agent.  All documents and communication goes through an internet middleman (Equator).

Here it is, Step by Ugly Step

  1. I had a Short Sale Active Adult Home for sale which was originally listed for $479,900 and after several price reductions, it ended up at $449,900 and was well worth it.
  2. When I first listed the house, both sellers (divorced and disliked each other) each had to fill out the large amount of paperwork for the lender. (one set from each)
  3. There was a second mortgage that had to be dealt with and a second set of paperwork from each seller.
  4. After several months, I received and offer on the home for $330,000.  The offer is what started the Short Sale Process with primary lender.
  5. I elected to use a short sale facilitator to assist with the short sale process.
  6. I signed up for Equator (middleman) and assigned authority for the facilitator to use it.
  7. Since so much time had gone by since the listing  began, it was necessary to have both sellers redo all of the paperwork for both lenders (My file started to get pretty big)
  8. The primary lender had an appraisal and Brokers Professional Opinion of value.
  9. The second lender established a price that they would settle for and the primary lender agreed to it.  At least that was out of the way. (Thank you second lender)
  10. Remember, I submitted an offer for $330,000.  The primary lender sent us a request to reduce the price to $329,000.  After notifying them of the $330,000 offer, they still weren’t aware that an offer had been submitted.
  11. Next, they wanted me to reduce the price again to $297,400.  It seemed to me that the right hand had no idea of what the left hand was doing.
  12. Again I reminded them of the $330,000 offer.  They did not have me do the second price reduction but kept the original one of $329,000.
  13. After several months (5) of going back and forth and spinning our wheels, one of the sellers got critically ill and ended up in hospice.  She wasn’t expected to live more than a week.  She had assigned Durable Power of Attorney to her brother who lived in Arizona.  Now we were under a time crunch to get the process completed before she passed.  If she did pass before closing, the power of attorney was no longer in effect and we would be back to square one. (or even worse with Probate becoming an issue).
  14. Here’s where things got really bad.  The communication between the primary lender  and the sellers agent (me) became almost impossible.  It seemed like we had to attempt contacting them 4 or 5 times before getting any response.  Being in different time zones, they often called back after 5pm our time.  I tried to explain this to them.
  15. Eventually, we started cc’ing all of our requests to all of their higher ups.  Guess what, the results were the same.  Time was running out and we were getting nowhere.
  16. When talking with the; primary lender, we were dealing with different people. (that was a problem). Each person requested different information about the same issues (Again, Right Hand / Left Hand).  A problem came up with line 506 and 509 of the HUD. They couldn’t even agree on how it shoud be.  It didn’t change the bottom line but they insisted that it be done. (Confusion set in)
  17. The buyers were getting frantic and almost walked.  All of their plans were out the window and they were in limbo.  It was extremely hard on them.
  18. After several more attempts to try and find out exactly what they wanted, we finally got it the way they wanted.
  19. At this point, it had been 6 months trying to close a short sale that shouldn’t have taken any more than a month.
  20. The long and the short of it is that we finally closed two hours prior to the seller passing.  Did I worry throughout this process?   You bet I did.


Meanwhile, life goes on and unfortunately, so do short sales.



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8188 Jog Road Suite 101
Boynton Beach, FL 33472

Candace: 561-927-7566
Joel: 561-374-4030

Office: 561-735-3000
Fax: 561-429-2195