Bank of America Short Sale Approved…. and Closed

Everyone thats ever attempted a short sale knows that there is nothing short about the whole process…. as was the case for the short sale we just closed on today. I met with this homeowner about a year ago…. January of 2009. It took two appraisals and 12 months time, but we got Bank of America to approve the deal and we finally closed on it.  We got a really good deal on this property, as is the case with most of the short sales that we buy, so it is definitely worth the wait. My strategy with short sales is to just jam them into our pipeline and sit and wait. I never know when they will get approved, or even if they will get approved at all….. but its always a pleasant surprise to get that call or email with an approval.  

This is another one that we started work on before we even owned it. A little risky, but we actually received the short sale approval letter in December and they gave us over three weeks to close it….. which really surprised me because usually they are drilling you to close within 10 days.

Heres a look at the property, located on Ravenwood St in Springfield;

Kitchen

Dining Area

Living Room

Bathroom

Bedroom

Roof Leak.... always a plus on a Short Sale

Bedroom

Garage Full of Junk

Basement Full of Junk

 

You’ll notice that this house had an active roof leak, which is always a plus when you are negotiating a short sale because the bank knows that no FHA buyers will be able to purchase the house. Use this as ammunition to drive the price down. 

I think we may have another short sale very close to approval. Should be another good deal, I’ll post more about it as things materialize.

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6 Responses

  1. Hi Matt,
    Congrats on the deal. 12 months sounds like a long time but at the end it’s worth it.
    I am fairly new to your blog and I really enjoy it.
    My questions: Percentage wise how many of your deals are short sales and do you negotiate them “in house” or do you have someone else do it for you?
    Thanks,
    Keep on flippin’
    Russ

    • Hi Russ,

      Short sales are only a small percentage of our deals, maybe like 15%, but I am trying to get more going…. because when we do get an approval they are usually very good deals.

      As far as negotiating we’ve done a mix. I’ve negotiated a few, we’ve used a third party service, and we are also working with someone in-house to get them doing them for us. This one was approved through our third party negotiator.

      Thanks for stopping by!!

  2. Great job Matt, if you don’t mind me asking what was the accepting bid on this one.

    thanks in advance

  3. way to stick this one out Matt! Was it hard to wait it out? You’ve had so many other projects going on that you probably forgot about this one from time to time. haha

    • Hi Scott,

      I tend to forget about the short sales until I get an update every now and then from my negotiator. Thats why I like them…. we can focus on our other deals and just wait for the approvals.

  4. The negotiation process is a real pain from the sellers and buyers point of view. But if you can get the lender to move it may be the best option. As a real estate attorney in Florida who specializes in short sales we know how long the process can be. But thankfully, it’s all getting better down here in the foreclosure capital of the US.

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