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Partial tax credit extension decreases stress for short sale participants

Since the end of April we have several buyers purchasing our short sale listings who were  also getting the $8,000 first time homebuyers cash incentive.  Of course when it was more necessary than ever to have a timely close, Murphy’s law took effect and one of our short sales went wrong when it was broken into and severally vandalized.  The buyers still wanted the house and the insurance company was going to make it right.  Three weeks later All State Insurance (Thank you guys,  I will be sure not to get insurance through you or recommend you to my clients.)  decided not to pay a claim based on information that they had received 8 months earlier from the mortgage company saying the home had been abandoned.  Of course All State still accepted the premium while cutely excluding any coverage at all(google all state insurance sucks).

With all the stress of a short sale a buyer doesn't need the threat of losing $8,000. Short sale buyers still waiting to close can get some rest as soon as congress has passed the extension to the required closing date to get the tax credit.

So of course we have been working with Bank of America to try and renegotiate the short sale they have already accepted so that they can avoid foreclosing on a very damaged home.  We have sent police reports, insurance adjusters reports, contractors reports.  We have talked to the call center reps and the negotiator.  We have left messages for the closer, the closer’s  boss and and bunch of executives and there has been simply no help to make sure that the investor (Fannie Mae)  they service does not lose a bunch of money by foreclosing on this home.   All the while several more weeks have gone by and end the end of June is looming like a fearful specter.

So you can imagine that everyone involved, especially the buyer is hoping to be relieved of some of the urgent stress to now that the prospect of having an extra three months to get this closed is on the table thanks to the senate passing the extension.  For many buyers the extension doesn’t help them because they didn’t get an offer accepted in by the previous end of April deadline that still stands.  However for nearly 180,000 buyers involved in short sales and other delayed closings, this extension will be a God send.

As far as the deal goes this we will be going directly to Fannie Mae as Bank of America employees have really dropped the ball.  If we still don’t get satisfaction we will pull some other tricks out of our short sale negotiation bag.  All of this takes time though.  My sellers are happy to have someone who understands short sales on their side.

Andy Morris is an Ohio real estate broker with an expertise in selling homes on a short sale. If your Ohio home is heading towards foreclosure or you owe more than your property is worth, please call Andy at 888-4-STOP-IT to see if you qualify for a short sale with your lender.  Are you not in my area?  His foreclosure answer service is free to you as well!

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