Don't Do a Short Sale!

Here is an actual transcript from a series of email conversations I had with a listing broker trying to sell a waterfront cabin for an underwater owner. Sadly, this listing broker was more interested in trying to earn a big commission, than in doing what was right for their client. As a result, their client will have a big hit to their credit and some significant financial loss:

12/22/12

Connie and kathryn,

Would your client consider a long term lease with the option to purchase on this property? The lease would be for the same amount as his monthly mortgage, taxes and insurance; and the purchase price would be for the remaining principal balance on your mortgage at the time of cash out? I would want the longest term possible, at a minimum of ten years.

This offer would be subject to a title review and inspection; and Seller/Owner would pay for any major safety or repair items (generally anything over $1000). Seller/owner would be prohibited from any additional indebtedness during the term of the lease agreement. The transaction would also be subject to a review of the existing loan documents. 

The buyer would pay an amount equal to the first month rent to the Listing Brokers. There would be no other funds than the lease amount, which would be applied in full towards the mortgage loan repayment, taxes and insurance.

Please let me know if this is a possibility.

Happy Holidays,

Wendy Ceccherelli

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Wendy, we will ask our client as soon as he is available.  I'm not sure of his holiday plans.  

In the past, with similar inquiries, he has indicated that he wants to be cashed out.  However, I'll pose the question with the terms you suggest.

Wendy, tell us more a out the buyer/buyers, please.

Happy Holidays.

Best regards, Kathryn

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If this is agreeable to your client, I would probably be interested in leasing it....My credit is excellent and I am a specialist in property management as well. I am looking for waterfront property that I can afford.

Happy Holidays,

Wendy

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01/03/13

Thanks for your interest in the waterfront cabin on Paige Lane.  We caught up with the client after the holidays and shared you proposal and terms.  He said thanks but he isn’t interested in pursuing this.

Hope 2013 is a great year for you!

Best regards,

~ Kathryn

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That's a shame, but please keep me in mind if it does not sell right away.

Happy New Year,

Wendy

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06/26/13

Would your client be interested in considering this offer now?

Wendy

___(no response)___

10/01/13

Kathryn and Connie, I see that this listing still has not sold. Do you think the seller might be willing to consider my offer in the previous email?

Wendy

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Wendy, this is now a short sale so it is doubtful that a lease will be considered.  We'll ask and let you know.

Best regards,

Kathryn