Another Short Sales Contract Fails in Schaumburg Illinois
This short sale listing of a condo in Schaumburg had everything going for it. The owner was pro-active about taking steps to try a short sale as soon as distress loomed on the horizon.
- The condo was listed for sale at market value-well maybe just a little under.
- The owner made the condo available for showings.
- The Home Owners Association fees were being paid every month.
- Time passes but both the owner and I, her Short Sale Realtor, keep the bank up to date on progress.
- During the listing we were contacted by FHA as the owner qualified for their HAFA equivalent approved short sale program. Yes they contacted us!
- The condo and client were approved for the short sale program within a few days; we just needed an offer for a set amount.
- Offer was received for full asking price.
- Short sale documents sent to bank along with HUD-1 showing net proceeds just above what the bank wanted.
This is like a text book short sale, albeit it little odd in progression. So what went wrong?
Simple; at some point the owner decided not to pay the Home Owners Association Fees anymore. There were 4 missed payments of just less than $300. The HOA sent us the bill-$4000 and change. (We had assumed they were up to date-until the bill arrived.)
Because the owner had not paid the monthly assessment there was interest charges and late fees added, plus for some work the owner called to have fixed those were added as full bills for the owner to pay.
The owner did not have $4000. So the short sale has failed when we were so close to saving the client. Could the owner afford the monthly fee? Yes. So why on earth did payment stop? I guess I will never know but now this client is moving out of the condo which will be foreclosed on next week.
Could the HOA have helped, maybe but they will get all their money at sale after foreclosure so why should they help? The owner started out the right way but did not think to ask before stopping payments and did not tell the Realtor.
If you need a short sale on a condo ownership property do not take any action with-out first asking your Realtor or your Attorney how it might affect you. In this case the price is a heavy one. Foreclosure could have been prevented-we were so close to a succesful short sale.
Call me today! I do short sales in Schaumburg for owners willing to do as they are told. Corinne: 847-363-3686.
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Copyright 2010 Corinne Guest All Rights Reserved - * Another Short Sales Contract Fails in Schaumburg Illinois *
Corinne Guest
Realtor & Managing Broker
Royal Advocate Realty, Barrington
Call today 847-363-3686 for real estate and relocation service.
Real Estate in Barrington and The Northwest Suburbs
Short sales are hard business and foreclosures aren't much better, but sometimes that is all there is in some markets.
Corinne: Had a blog about HOA's and this very problem just last week. Sounds like an issue that we will be seeing more often in the future. We ALL need to be alert to it. Thanks for posting and reiterating this message ...
Gene