Portland Short Sale Case #5

Location: Owner occupied Property in Portland Oregon.

Total owed: $296,300 on a countrywide  1st Mortgage interest only.

Home was listed in late August 2008 at $339,000 and slowly reduced to $325,00 in Feb 2009. This is when we were called in to help. We were presenting one of our advanced short sale seminars to 30 local realtors that day and a Century 21 agent named Cynthia approached me afterwards.  She said…..

“I have some clients who are getting divorced and the property has no equity. My attorney friend referred them to me because it’s the final joint asset they need to deal with to finalize the paperwork.”

” I replied its technically not a asset and more of a liability. We can help them. When can we meet to go over your file?”

When the market is Hot and a divorce occurs; the equity in the home serves to payoff existing joint debt or trade CASH  against a splitting 401K investments. In these stressful economic times where no equity situations, its a different ball game. Generally you have one half of the divorcing couple who is willing and able to provide financials, current paystubs, etc. The other one is usually the stick in the mud dragging their feet to punish the future Ex.. I sit down with both parties (separate times of course) and walk them both thru the process. I explain that short sales are a team sport and we need everyone on board as team until this is over. In this case both were ready and willing to move forward…

So here are the final numbers:

Final Sales price of $281,932.

Client owed $281,932  Lender Accepted $255,817 ( $38,483 LOSS)

Closed on 2-20-2009   Divorced couple free to pursue separate lives!!

5% Commission Approved realtors were excited! Buyer was also excited to receive $7,000 for her closing costs and prepaids and an outstanding property at a real discount! We had a full complete package from Cynthia and closed it in record breaking time- 2 months.

If my blog is reaching any divorce attorneys out there and you might want to review the value of the property before putting the final touches on the divorce decree. There are two different values out there. The offer price someone is willing to put a pen and ink on and just comparables generated on a Comparable Market Analysis (CMA). The gap is growing every day! It could help you gain advantage in your negotiations!

If you are a divorce attorney wanting to finish out your clients case but are dealing with no equity or underwater property,  don’t hesitate to give us a call. We can step you thru this type of  short sale. We have 3 other cases like this currently. We would love to make your story the subject of our next case study! You can follow us on twitter also

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Coastal Mitigation Partners
503-265-9553