This was one of the most unusual short sales I’ve ever gotten approved. It all started when an investor with a PNC mortgage called me about his property in Santa Rosa Beach Florida. He had purchased the new construction home sight-unseen seven years ago in the Town of Santa Rosa. It was in a small subdivision with nine other homes, all identical floor plans. The current owners of these houses had been presented with an “investment” opportunity at a hotel event. They were told they could buy these new construction homes and “flip” them for a profit when they were finished. They were also told there would be no payments due, just their credit used to buy these homes. (This is a mortgage fraud RED FLAG). Of course, no mortgage payments were ever made. The construction was never completed. Contractors were not paid. Only some of the homes even had a certificate of occupancy. All of them needed substantial work to finish. They had been abandoned and boarded up for several years. They were purchased for about $400,000 each, and now were worth around $50,000 each.
When this seller called me and told me about the situation, I contacted the other owners who were in the same predicament. They each listed with hopes to obtain short sale approval. Luckily, we got an offer for all ten homes from one buyer. The buyer obtained professional bids to bring all the homes up to code and into move-in condition. The repairs were approximately $10,000 to $40,000 per home. I negotiated back and forth between the sellers, PNC and the buyer’s agent until we reached agreeable terms and short sale approval last week.
PNC is issuing each seller a waiver of deficiency.