Short Sale Story, Update

By | September 15, 2009

http://xenophilia.com/wp-content/uploads/2009/09/short20sale.jpgShort version of my short sale:

As followers of this blog know, I bought my first home at the height of the market for $300,000 and have now lost nearly half the value in 4 years. Due to an adjustable rate mortgage I was suckered into, I have limited options.  I was advised to stop making payments, which I did, taking about a 150 point hit to my FICO score over the course of a year.  As the foreclosure was going forward but before the sale date, I had two offers on my place for $150,000.

Bank of America had a Buyer’s Price Opinion come back at $170,000 so that was their counter offer.  Surprisingly, one buyer accepted the $170K offer, and the contract was drawn up.

Now 15 days from needing to be out of my house, after I’ve already started moving into an apartment, I find out the buyer’s appraisal came back at $7,500 less than the sale price of $170,000.

The buyer won’t pay more because the buyer’s bank won’t lend more than the value of the home. What will B of A do? Will they take the  $162,500 price the buyer’s bank’s appraiser says is the current Fair Market Value?

Will B of A opt instead to go for the foreclosure and then have to sell it for even less in a few months? A similar place near me is about to sell for $148,000.

Will they modify my loan to a 30 year fixed rate I can afford as they should have done so I can keep my home??

Time, as they say, will tell.  What a ride.

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