Short Sale Case Study for a Biltmore Property in Phoenix

I had successfully negotiated a short sale for two clients of mine who had invested in a luxury home in the Biltmore corridor.  It was located in the first LEED Certified project in Arizona.  That means this this home was Certified Green!

Unfortunately a couple of years after they purchased the real estate market tanked leaving this investment worth approximately 50% less than what they paid.  My clients were current on their mortgage, but they knew they would not be able to hang on much longer as the rent did not cover the monthly payment by a long shot.  I attempted so submit the short sale package initially without the clients being delinquent on the mortgage, but we were told the short sale could not be considered until they were 30 days late.

During that 30 day “wait” period I marketed for the cash offer at fair market value of $350,000.  Immediately after being 30 days late I submitted again.  The lender was One West bank who had taken over since the original lender (Indymac) had failed and was taken over by FDIC.

The file moved very quickly and without a even a counter or any requests for seller contribution – APPROVED in less than 45 days after submittal.  I knew I had a strong offer but I also knew the sellers still had some assets and income so I was concerned about that.  Apparently the loss of value and negative cash flow show enough hardship and the lender knew they had a good offer.

The other fact is that OneWest Bank likely purchased this note from Indymac for a significant discount and this was likely a profitable transaction for them.  This is why we also say that every short sale is unique and anything can happen.  The experience I can continue to get by negotiating so many files is the best education I can receive.  I was thrilled to get my clients out from under this property and I know the new buyers are very happy. ~ Kim Anderson, Designated Broker

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