And that's all she wrote!
Well unfortunately the seller has had a sudden change of mind. I just received an email that states:
Well guys,
I am not happy with the way things are going with this deal, and wish to just bow out and all of us go our own ways at this time.
If in the event you are still interested in the property, let me know and I will send your information to our agent so that she can contact you.
Thank you for your time and information,
Who knows what happened or why the seller all of sudden feels the need to list his property with a Realtor. All we can do is wish him luck and move on to the next deal. The lesson learned I think is that even though you have the financial means to succeed on the deal, you have the experience and know how and you're more than willing to go out of your way to help a seller, they're mind is easily changed. Too bad, this deal was a sure shot at success.
Good luck to you and your wife Gary. I think you've taught a valuable lesson to new investors that even the smartest ideas aren't met with proper thought.
Comments (11)
Aaron, I'm working on a few deals currently. Once they're completed, I'll blog their details. I've had some bad stigma attached to me whenever I've blogged about the deals while they're going on so I have to wait until they're over now. Subscribe to my blog and you won't miss a beat
Nick J., over 14 years ago
When is the next deal break down blog? This has been helpful being new to REI, but it leaves me wanting more!! Thanks Nick!
Aaron Mund, over 14 years ago
Buyer is ready, willing and able to perform as promised. Contracts are still available for review by attorney. Buyer Doesn't get cold feet and has no problem moving forward.
Nick J., about 15 years ago
Geez? I want to apologize to Nick and the homeowner. There are a lot of people in his situation. Deep down I feel for them. Who knows (heaven forbid) that could be me one day. My comment was way out of line. My apologies.
Norm Chrostowski, about 15 years ago
Hello everyone, This is “Bob/Gary†the owner of the home in this blog. I wanted to make one post on here and explain to everyone WHY, we decided to stop this deal where it sits. We discussed this with a Real Estate attorney and were planning on meeting with Nick to look over the paperwork he was asking us to sign. Including the POA. This would have assured us that all was well and that we were “covered†in this proceeding. What stopped the deal was Nicks last email to us. In this email, he says that he will draft the paperwork and get it all ready for us with our attorney to look over. He also said that he was going to inform the buyer he had set up, to go look for another home, apparently thinking this one would NOT be available? (Pressure Tactic?) Also to his associate to STOP the short Sale process on the home. WHY? In our minds, all paperwork would still have been signed and in his hands Monday and all could have gone on as planned? He also stated that our lawyer would probably advise us NOT to sell the home “which will result in not so favorable terms for our self’s facing foreclosure�(More pressure tactics?) I do not know why he would think this, unless our attorney thought it would not be in our best interest, to follow through with this deal with Nick? We did not see a problem with the deal as it was going and obviously, Nick did, or he would not have Stopped everything in its tracks? At this point, we thought it best to fall back, regroup, as it appears that both Buyer and Seller got cold feet.
Dismayed Homeowner, about 15 years ago
Perhaps, you scared the seller with your efficiency. The seller might have prepared mentally for a longer wait (ie an extra 3-6 months)--expecting the 2nd lien holder to put up more of a fight. Stated another way, maybe you executed so fast that the seller wasn't prepared to move so soon, and the seller could be using the agent to stall for more time.
Dory Peters, about 15 years ago
More than likely what will happen is he'll list it with a Realtor and they Realtor will place a sign out front and place the property on the MLS. Then the Realtor will do nothing (so many of them are taught to produce more listings instead of putting effort into the listings they currently have) until an offer is submitted. If by chance the property hasn't been auctioned off then the Realtor will 'attempt' to initiate the short sale (unless they're 'proven' experienced) they will fail to successfully complete it, the buyer will walk and buy another property because it takes so long 'usually' when Realtors are involved. The difference that will be 'attempted' to be shorted will be the difference between the amount owed and the offer price that is submitted. With the comps showing the property at 120k and it needing obvious repairs, the lender will either have to accept an even lower price than they could've got or the seller will have to cough up some dough and 'fix' the place up some just to let it compete with the houses in the immediate area that are in much better condition than his. Either way, the chances are slim to none for the seller, but I wouldn't hope that it blows up in his face, he's already been through enough troubles and he's headed towards more without realizing it yet, so for me it's more about feeling pity for the sellers who have to suffer more because of the empty promises that the 'licensed' individuals will give. Let's hope that he does list with a 'better than average' agent. I would've offered a proven successful agent that actually does really well with short sales had he asked me, but again.......you can't make someone make good decisions, only hope that the next time they remember what could've been. Maybe I'll post up my next deal, I sure would like to let everyone see how it's done from start to finish.
Nick J., about 15 years ago
It still sucks. What's he gonna do, list a house in which he owes 140k on for 120k? Try to short the second himself? Personally, not to be nasty, I hope it blows up in his face.
Norm Chrostowski, about 15 years ago
With that being the case, I'm glad it was in your court rather than mine as time is a valuable thing and I don't have a whole lot of extra to blow these days.
Will Barnard, about 15 years ago
yep!
Nick J., about 15 years ago
As you know, Nick, its all part of the game. I think it is a valuable lesson to learn that not everything is in your control, no matter how much we'd like to think so.
Joshua Dorkin, about 15 years ago