I had a closing earlier this week -- finally. Oh...don't get me wrong. I've had many closings this year, but this particular one should have closed two months ago. It has taken many months to get this closed because the buyer has NOT been in the habit of keeping their paperwork, bank records, taxes and finances in the proper order conducive to purchasing property. Can't help it. I picture shoe boxes under the bed and stashes of cash in the mattress.
Several months ago the Buyer came to my office and exclaimed that she wanted to purchase a home as soon as possible. After we looked at 13 properties in two days, she mentioned to me that her "ideal situation" would be to purchase the home she was currently renting.
Martha (not her real name) moved to Atlanta from New Mexico 8 years ago. For the last five years she has been renting a single family home that was ideal for her needs. A low-maintenance postage stamp size lot, 2 car garage, 2000 square feet, beautiful hardwood floors, granite in the kitchen and a huge master bedroom suite with a balcony helped to make this a perfect home.
During the last five years Martha told me she indicated an interest to purchase the home several times to the landlord. Martha's efforts were all to no avail when the landlord repeatedly denied her requests. Before we continued to look at more property, I suggested to Martha that we ask the landlord one more time if they would be willing to sell the property.
BINGO! We hit pay dirt!
Finally, the landlord agreed to sell the property. This was the charm that Martha craved! The first challenge we had to hurdle during our negotiations was that the value of the home had fallen significantly during the current recession in the housing market.
The landlord purchased the property 8 years ago for $245,000. The neighborhood and current appraisal indicated a short sale was necessary. Martha was able to purchase the property as a short sale for $159,000! GREAT NEWS FOR MARTHA! Too bad for the landlord!
Interestingly, the short sale lender agreed to all terms early on! This is the first time I have completed a short sale where the seller's lender was ready to close before the Buyer! No Kidding!
The reason it took the buyer so long to close was because they had no paperwork available. This home buyer never keeps receipts. Never keeps canceled checks or tax records. In fact, this particular client owed the IRS $1000! Every time the Buyers Lender requested information, it took Martha days and weeks to provide the necessary documentation. Often times the documentation was late or incomplete which required the lender to seek rate extensions. We completed four Amendments to Extend the Closing Date. Suffice it to say, we finally closed on Tuesday.
If you are thinking about purchasing property in the near future, I encourage you to be organized! Your lender will be scrutinizing all of your financial accounts from the time of your application through to the day and hour of closing. While you are going through the process, it is necessary that you not purchase any high ticket items or open any additional credit cards or accounts. This could harm your chance of being approved for your mortgage. Additionally, you need to provide all paperwork requested in a timely manner. Your lender and Realtor will be happy to answer your many questions regarding the process. After all, they recognize you don't buy property every day and that the process can be very convoluted at times.
Sara Hibbard is a licensed Realtor in Georgia and specializes in assisting home buyers in the north Atlanta metro area. Please contact Sara with your many questions and concerns regarding the real estate market in general or specifics regarding the buying, selling and relocation process. Sara Hibbard is easily reached at 770-399-8108 or 404-660-2481. e-mail Sara at sara@sarahibbard.com. Sara Hibbard is Glad Georgia Real Estate Is On Your Mind!
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