short sale IED

[tugg49]

I knew it was coming. The deal was too sweet. We are a week away from doc signing and have a great loan a great house and a great, well, great everything. So what does that make the deal worth?

Because the owner and resident of the house will not leave and she wants “key money” for a new place. Realtor calls on Black Friday! (We were just out the door to buy a 70″ big screen!)

I knew there would be an IED out there. We found it and now we are trying to minimize damage. She says she’ll just let the house foreclose because she can’t afford to move. Doesn’t even have a name of a place she’s filled out a rental application for. Bad juju! I said she needs to offer 3 apartment applications and be approved for tenancy and then we’ll talk. I’ll pay the deposit and the first months rent directly to the landlord.
In case you haven’t read the prior post it’s a VA LOAN locked at 3.75% with less than 5K down, closing costs reimbursed by company, 132 bucks a s/f and a gated community in Monterey/Salinas area. 10 year old home 3300 s/f on an acre of land.
Realtor (buyer/seller agent) wants to negotiate a deal. (He’s taking a beating with a 3% commission for this 8 month saga) I’m in favor but will only pay the “key money” after she vacates and we do the final walkthrough and close the deal. I’ve offered to buy her furniture as the story in case flags are raised. I can afford a good amount but want to minimize her satisfaction by extracting blood money from me. She’s a nurse and a religious type and has barstool lawyers of other nurses telling her how to milk the deal.
I stand to lose all inspection monies, VA repairs for VA appraiser (minimal costs) and the like (maybe 3K). So what is a 450K home worth not to lose? 5-10K? Nothing? Walk away (not hardly).
If this falls through we start over and that will kill our holiday spirit.
I may play her game but after we’re moved in and all the dust is settled I want to give her one last BAZINGA so she understands bad kharma always gets punished (however small).

Give me some ideas/guidance as to how to proceed.

What I have in the mix:
That 3.75% VA loan is sweet and I stand to lose the company closing cost/VA funding fee reimbursement plan in April…that’s about 15K if I can’t find another home.
Another thing: landlord has been given notice and the overwhelmed movers are sked for the 7th of Dec. December is big move month up here for Naval PostGrad school.
And don’t ask how the wife feels!!!!!!!

And that’s how a short sale goes!

[Coronita]

You jinxed it by first talking about it before you actually closed.

How badly do you and your spouse want the house, and how much of it is a steal?

Find out how much she wants…This is one of the times I guess you just need to swallow your pride an pony up the dough. Call it blood money or whatever, but doesn’t seem like the “religious” nurse has much of morals/ethics herself. So you shouldn’t feel bad either….

I wouldn’t leave a paper trail of what you’re doing either, unless you’re just hell bent on getting her in trouble. Then I would leave as much papertrail as possible, as I doubt she has the marbles to figure out what’s going on.

I would also definitely find out where-else she might be behind (hoa payments, prop taxes,etc,etc,etc,etc)

[bearishgurl]

Couple of questions here, tugg.

How much will your HOA dues be?

Is the proposed property encumbered by Mello-Roos bonds?

You now state Monterey/Salinas area (not Monterey proper). Is the property actually in Salinas proper?

Do you actually NEED 3300 sf?

What’s stopping you from making an offer on an (older) “well-located” Monterey property without regard to size, age or condition? Don’t you think a property such as this might hold its value better than an HOA/poss MR encumbered property outside? Monterey?

Based upon this new thread, I see this seller squatting until her REO lender evicts her after trustee’s sale. Let THEM pay her “walking money” if they so choose, AFTER she purposely killed a bonafide short-sale buyer for the purpose of squatting longer! Based upon your previous thread, I DON’T SEE her vacating after she gets “walking $$” from you. What I DO SEE is YOU being manipulated into closing and THEN having to evict her yourself (yes, EVEN AFTER YOU PAY HER “walking $”).

This seller appears to have no intention on leaving until she is evicted.

tugg, if you MUST hang onto this deal, then DO NOT CLOSE UNDER ANY CIRCUMSTANCES until the seller has vacated the premises and left its condition to your satisfaction. NEVER pay her a dime in advance of those things happening in that order!! I don’t really even like the first months rent and deposit idea but if you had to do it, I would limit it to $3000. THAT’s ALL AN REO LENDER WOULD PAY HER before summarily having her evicted and setting her belongings on the sidewalk.

It is most disgusting to me that the “seller” is a “professional” and currently gainfully employed.

Do not worry about the VA rate being 3.75% or 4%. This is irrelevant to finding a suitable, straightforward deal.

[bearishgurl]

[quote=flu] . . . I would also definitely find out where-else she might be behind (hoa payments, prop taxes,etc,etc,etc,etc)[/quote]

Excellent suggestion, flu.

tugg, if your agent is asleep at the switch, I suggest you work on this first thing Monday morning. Call the County treasurer or go to their website and find out the taxes that are owed.

https://common3.mptsweb.com/megabytecommonsite/%28xsmpl4qq0cvopquzeg1n3sfp%29/PublicInquiry/Inquiry.aspx?CN=monterey&SITE=Public&DEPT=Tax&PG=Search

The first installment for FY 11/12 is DUE in TWO WEEKS! Recheck your preliminary title report (that you “approved” already) to see what it reveals as to tax installments that may still be owed. Call the HOA and find out if the seller was behind on dues and if so, how far, incl late charges. Check the recorder (or have your title officer do a search) to see if the HOA (or a judgment creditor, FTB or IRS) has placed a lien against her (and/or the property) SINCE you approved the PTR.

[SD Realtor]

If you really love the place then why not simply close escrow and then evict the seller. The eviction process is not a walk in the park but this person may take your blood money and still not move out.

Has the seller signed the grant deed yet? You may want to check with escrow if everything has been signed so that escrow can close in a timely manner regardless of what the seller is doing to try to extract the blood money from you. If you find that escrow can close regardless of her demands then I would simply close escrow and evict.

The problem with playing along with her demands is that you pay without proof of her going. I guess if you can arrange it that she is vacated and then give her a check then it works out okay for you.

[Coronita]

deleted.

[Coronita]

[quote=SD Realtor]If you really love the place then why not simply close escrow and then evict the seller. The eviction process is not a walk in the park but this person may take your blood money and still not move out.
[/quote]

Wouldn’t there possibly be an issue if she trashes the place while waiting…Even if you drag her stupid ass to court, she wouldn’t have money to pay…

[bearishgurl]

[quote=flu][quote=SD Realtor]If you really love the place then why not simply close escrow and then evict the seller. The eviction process is not a walk in the park but this person may take your blood money and still not move out.
[/quote]

Wouldn’t there possibly be an issue if she trashes the place while waiting…Even if you drag her stupid ass to court, she wouldn’t have money to pay…[/quote]

I continue to maintain that tugg is entitled to a final walk-thru of the property within 48 hours of closing. If the seller accepted his offer with the express condition that the property be delivered to him vacant, then it better damn well be vacant and in the same condition as it was when he wrote the offer (with no appurtenant fixtures stolen or destroyed) at the time of his walk-thru. Anything else is a seller-breach and tugg doesn’t have to close. He could later try to sue her in small claims for his escrow losses on this breach. She IS employed and so if he gets his ($3K or so) judgment against her, he can have her employer served in attempt to assign her wages. Given the small size of that community, it won’t be difficult to find out where she works.

He needs to go on the walk-thru with at least one witness (preferably his agent) and a date/time stamped camera.

Even though on an “expedited UD calendar,” it IS expensive to evict, and tugg may very well have to begin paying mtg payments while she is forcibly evicted and her stuff is properly stored by law, waiting for her to claim it.

[bearishgurl]

[quote=bearishgurl]. . . Even though on an “expedited UD calendar,” it IS expensive to evict, and tugg may very well have to begin paying mtg payments while she is forcibly evicted and her stuff is properly stored by law, waiting for her to claim it.[/quote]

The above italicized portion only applies to tenancy. tugg would have to have a written agreement to allow the seller to rent back after escrow in order for the “storage clause” to be invoked.

If she was forcibly evicted after escrow closes, I have no doubt tugg would have to make a few trips to the dump with her stuff, etc. After all, it’s a “large” house…

[bearishgurl]

[quote=tugg49]I’ve offered to buy her furniture as the story in case flags are raised…[/quote]

tugg, if you offered to “buy her furniture” (give her a check outside of escrow??), then why hasn’t she filled out any rental applications so she can vacate? Do you have a “side written agreement” to pay her this $$ upon COE? Is she afraid you won’t pay her for the furniture?

And since your seller is employed in a “professional” position, why is it that she “can’t afford to move?” This is a HUGE RED FLAG, IMHO. She must have creditors hounding her that you don’t know about and may even be considering filing for BK, if she hasn’t already SINCE you received your preliminary title report…

[quote=tugg49]…Realtor (buyer/seller agent) wants to negotiate a deal. (He’s taking a beating with a 3% commission for this 8 month saga)…[/quote]

LOL, how many MONTHS AGO did you approve the PTR in this transaction??

edit: having a “Dual Agent” is part of the problem here, IMO…

[scaredyclassic]

It’s probably a good idea not to get angry.

[outtamojo]

Just curious but are all those nurses…Filipino?
Btw, I hail from North Salinas, planning to do the opposite of what you are doing.

[SD Realtor]

Flu that is definitely the risk that she will trash the place. However from what the poster wrote about the seller to begin with, it seems like the risk is low that this will happen. The seller can walk, and then attempt to get whatever money back that was invested through courts but given the sellers disposition this seems to be a waste of time.

[Coronita]

[quote=outtamojo]Just curious but are all those nurses…Filipino?
Btw, I hail from North Salinas, planning to do the opposite of what you are doing.[/quote]

WTF? We’re talking Monterey here….Not Monterey Park….

[bearishgurl]

[quote=flu][quote=outtamojo]Just curious but are all those nurses…Filipino?
Btw, I hail from North Salinas, planning to do the opposite of what you are doing.[/quote]

WTF? We’re talking Monterey here….Not Monterey Park….[/quote]

tugg49 wasn’t too specific . . . we might be talking about Salinas and surrounds . . . which has mushroomed from a sleepy agricultural town 10-12 years ago (with mainly lettuce processing and packing for its chief industry) to exurbia extraordinaire replete with factory outlets and (HOA/MR – encumbered) flat tract after flat tract as far as the eye can see . . .

One can only imagine the RE distress in the Salinas area now, since the vast bulk of its properties were originally purchased new during the “millenium boom” and there is NOT a very diversified job base around there.

Salinas and Monterey are night and day. They may be located within the same county but comparing these two small cities would akin to comparing LJ or LaPlaya (PL) to Campo :=D

And neither could be compared to Monterey Park, lol…

[Author]

Posts