Profile picture for user2199873

home sale or deed in lieu

There will be a lot of details left out of this to hopefully make it, initially, short.
I have been trying to sell a home for about 5 years. Over a span of perhaps as much as 2 years, this has been handled by a Broker.
The home was placed as a possible short sale within the last year or so.
The potential buyers are living in the home paying rent and making repairs as a lead in to their eventual purchase.
We have recently discovered that the broker has not been turning over paperwork to the lender "in a timely fashion".
Hence, all bets are off as all parties have apparently been screwed over by this unscrupolous broker and I have started "deed in lieu" proceedings.
However, the potential buyers still want to buy the home. hey have requested loan numbers to call the lender and see what can be done. I am fairly certain they think they can still do this via the short sale.
OK, hope this is enough to help make it understandable.
Appreciate any advice or suggestions.

  • November 28 2012 - US
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Answers (9)

Profile picture for Frieda Triebel
Looks like Ofe has helped you with lots of advice and suggestions.

I hope your short sale goes through.  Good luck with it.
  • November 29 2012
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Profile picture for Ofe Polack
It was a pleasure talking with you and hopefully our converesation will be useful as you proceed with the short sale.  As promised, if you need further assistance, please, feel free to call me and we can have another chat.  The best of luck!
  • November 29 2012
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Don't give up on the short sale...use someone that is known to close Short sales (I have never not-closed one that I listed, knock on wood) in your state that can help you.  Where are you from?

Best wishes from So-Cal and good luck
  • November 29 2012
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Profile picture for user2199873

Ms. Polack-
Thanks for your time. I am in area code 615.
I have left a number on what I hope was your cell number.

  • November 29 2012
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Profile picture for Ofe Polack

Both Ann and I have offered you a private consultation, if you contact us directly.  Short sales are lengthy and irrational.  Many times the lender will deny having received docs and they need to be resend.  At times the sellers docs become dated and need to be updated which could easily be the case with something submitted in July, since we are now in November.  I think that finding the right agent is crutial to this process.  I would not give the tenants the loan number, you can simply ask the questions they need answered yourself.  Even if you were to give them your loan number, the lender cannot talk with them unless you authorize them in writing and most likely even then, I doubt it if they would talk with them, since the lenders do not talk to buyers directly.  If you want me to, I can find you another agent who speciliazes in short sales, to pick up from here.  Just send me an email message and we can discuss the details.  By the way...if you do not want to continue working with your agent you need to get a release from the buyer agency contract to proceed with anybody else. 

  • November 29 2012
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Profile picture for user2199873

This short sale process was based on my desire to be rid of this albatross before the end of 2012. I was told there was a possible loan forgiveness program in place that would relieve me of the obligation to repay the remainder of the original loan. The home no longer appraises for the same price it did 5 years ago.
I am retired and will not be able to do so.
I was current on the payments (until this month, November) and there are no foreclosure proceedings.
This home has been available as a short sale for about 2 years.
The broker arranged to put potential buyers in the home to pay a marginal rent until the short sale process was completed the end of July. All paperwork required was submitted to the broker for furthering to the lender. This had also been done before the potential buyers were acquired. But I submitted anyway.
The end of July came and went.
I was then asked by the agent again to resend paperwork because the lender was....whatever.
I was then asked by the broker, in October, if I wanted to consider a deed in lieu (something I had mentioned sometime earlier, before the potential buyer moved in) or whether I wanted her to resubmit paperwork.
At this point I became suspicious of the whole process. I had submitted paperwork now about 4 times. I called the lender. They said there was no foreclosure process nor was there even any short sale process. They spent some time on the phone with me, more than the broker has ever done.They said there was evidence of a possible short sale process but they had requested some sort of paperwork from the broker that was to have been submitted by Oct 12 but never completed.
The broker said the lender was full of it and sent me a copy of her completed, signed form. However, the form was dated for July.
When backed into a corner, I become a Nazi so I turned this matter over to my more civilized, businesslike wife.
She asked for paperwork from the broker disputing claims the lender was making. This apparently angered the broker who never answered. But, in another correspondence with her, she admitted, somewhat shortly, the short sale process basically ended in July and we were relieved of any further business/obligation to her (any real obligation such as listings or whatever, was technically over long ago. But because she seemed to be diligent and I had been told by many to be patient, this would take a while, I hung in there with her).
Great.
I called the potential buyers to inform them of this whole affair (I know I don't have to but I would want them to do the same were the situation reversed) as they have been putting time, money, and effort into the place and may end up being tossed out. They are "deers in the headlights". They don't seem to understand the possible gravity of the situation.
After we started the deed in lieu process, about a week ago, we sent a letter to the potential buyers informing them of this. They called last night wanting to know if I could send them the loan numbers so they could talk to the lender about still buying the place.
I haven't decided whether passing those numbers along is a good idea, hence my letter to this site. If I relent and go back to the short sale process and it falls through, I have to go through the DIL process all over again. Geez.....
It is curently too eary to call the lender but I wanted to elaborate some here as several folks have been kind enough to answer the original posting.
This is driving me crazy. 

  • November 29 2012
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I specialize in short sales and deed in lieu, as long as the home has not been sold at trustee sale, I may be able to work out a short sale with the lender and save you from the deed in lieu. Email me for a private consulatation.
  • November 28 2012
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Profile picture for Ofe Polack
Have you discussed this matter with the managing broker of the first that has been handling the short sale?  Maybe a more competent agent can pick up where this one left off.  You do not say for how long has the short sale process been in place...?  or how far into the short sale you are?  Have you continued to make mortgage payments, or is there an impending foreclosure on the property?  You said that all parties "have been screwed over by the broker"  specifically what does that mean?  I do a lot of short sales, and will be willing to talk to you about it, please, feel free to contact me.  
  • November 28 2012
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It sounds to me like your lender would be very willing to do a short sale since you already have a buyer.
You typically would only do a deed in lieu if you have been trying to sell for a long time and have not found a buyer.

I would suggest talking to another broker, and possibly even your existing broker and letting them know the urgency of the situation. 
  • November 28 2012
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