This whole short sale business has my nerves on end. I've got between 1 and 2 homes closing every month since I've filled the pipeline, but wow... I swear I learn something new every single time.
I've been too busy to blog. Not only is real estate keeping me busy, but I do have 5 young children that keep me pretty busy too, lol! Despite the fact that my head is spinning and my nerves are shot, I thought it was worthwhile to stay up a little later tonight to write this post.
One of my properties was supposed to close on Thursday, after a long process for an approval from Wells Fargo on both a 1st and a 2nd mortgage. The buyer held off on the inspection until the final approval came from the bank (in Illinois buyers have 5 business days from the bank's approval).
Upon the inspection, despite the fact that I have been trying to keep tabs on this vacant property, the battery in the thermostat died. The heat hadn't been on for several days, but as many of us know ,we've had a record breaking winter with snow and cold... when the Village of Plainfield met the FHA inspector and the property inspector there this morning the flood gates were open.
Water poured from the light fixtures, the seams in the drywall, the floor boards...
After some scrambling on both sides (thanks to the best selling agent I could have ever hoped to have on the other side of this transaction!) and thankfully to the buyer who is a contractor, who was willing to do the repairs tonight so we could have the property re-inspected tomorrow, it will pass the FHA inspection and the financing issue was resolved.
The closing is on for Thursday. Whew! This one was definitely by the skin of our teeth. (and I'm still not counting the chickens yet.)
BUT, not before I spent 2 hours in my car waiting for the sellers to show up to have a Power of Attorney notarized, along with the Deed to the property... only to find out the seller does not have a drivers license or state I.D. that I told him he needed almost every day for the last 3 weeks.
Now I have to meet the seller at his work at 9:30 am to get all of the paperwork from him to bring to the closing, 1 day off schedule. I also had to pay the lien from the village for the water bill out of my own pocket to clear the title.
Here's what I learned this go-round about short sale listings... especially as they are taking longer and longer to get approved:
- Winterize all vacant properties October 1st, NO MATTER WHAT!
- Get P.O.A. early if you will need it to close. Never trust a seller to the follow through at the finish line.
- Prepare a disclosure that requires complete seller cooperation to complete the short sale once the property is under contract with a buyer. Any breech of contract can and most likely will have legal and financial implications.
- Change the batteries in the thermostat upon signing the listing.
- Require the sellers to keep all the utilities on in their name upon signing the listing.
- Inform the sellers that they are required to pay for all liens on the property prior to closing.
Bend and sway. That's my motto.
Without it, I would certainly break.
So how are you doing tonight? You're so close to the finish line that I can mentally see those chickens lining up to be counted. Outstanding cooperation from everyone--except maybe the Seller. But with FIVE kids, you're used to the inconvenient domestic disaster, and even took time to post it for us. Batteries for the thermostat? I haven't encountered that one yet.
Julie, I hope you are able to relax & kick back for the weekend! Good job on being so diligent to get it done! It's always nice to have a list of what to do next time! Keep on keepin' on!