For those who enjoy the comedy of short sales, here’s a good one.

I’ve had a Tierrasanta condo listed since October, 2009.  The sellers paid $447,000 in March, 2007, and financed 100% (I wasn’t their agent then).

They’ve since broke up, and the hefty payment is too much for just one of them to afford, so we’ve been trying to sell it short.

http://Link to SDLookup listing

We found a buyer within a couple of weeks, and we began the normal process. The short-sale division of was just beginning, and once we got the buyer’s package onto their system in January we had approval within 30 days for a $350,000 sale.

They produce the final forms for the sellers’ signatures, and the bank includes the right to pursue a deficiency judgment against them, even though it was purchase money. Their lawyer rightly advises them to have me waive the magic wand and make the bank take it out.

The problem with having bank clerks working off a website is that anytime there is a request that is off the regular chart, it gets buried.  Sixty days of constant but friendly badgering produces no results, so the buyer gets so frustrated that, when this competing listing comes on the market around the corner, she buys it instead, for $390,000 VA:

Link to SDLookup competing listing

As it always happens, right after the buyer bails, the bank comes back with their waiver of deficiency judgment.

Our asset manager tells us to go find another buyer, and we can plug them right into the same package.  Within ten days we do just that, but when we go to upload, our asset manager is gone, and we have to start over.  We re-load the whole kit at $350,000, tell the new buyer to be patient, and hopefully we can still accommodate their need for a 30-day escrow.

Yesterday, and bank comes back with a new price – $371,000, based on a $75 BPO that picks up the previous buyer’s purchase around the corner, and adjusts our value up as a result.

There have been a couple of other sales too, $365,000 in April, and $388,000 closed today for a similar 1,491sf – but ALL of the comps are 3-bedroom models, and my listing is a 2-bedroom.

Will our buyer agree to the $371,000?  We’ll see.

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