This short sale saga began over a year ago and has finally come to a successful conclusion. Our market in Hilton Head and Bluffton, SC has always been enticing to investors. The allure of the coast appeals to baby boomers - and developers alike. My owner had purchased raw land in a new development in Bluffton. Created by one of our pre-eminent developers, Hampton Lake was, is, and will be one of the premier communities in Bluffton. My owner was successful in purchasing the site during one of the initial lotteries - obviously the desirability was strong in 2005.
After listing the homesite for him in late 2007 with the initial intent of building a spec home for a potential purchaser, our market for homesites - and new construction markedly slowed. By early 2008, we retained the site on the market but removed the aspect of building a home for a purchaser and continued to lower the price on the homesite until finally receiving an offer in May of this year. By this time, it was well into a short sale scenario since it was listed at less than half of what my seller had paid and much less than what he owed on his mortgage.
After subitting the appropriate short sale package, myriads of paperwork, calling weekly, updating financial information, receiving and sending on the credentials of the buyer (this was a cash sale), and learning to recite the loan account number by memory, we received approval from the lender at the end of last week.
Our closing date is set for mid-September, the seller is ecstatic since he will avoid foreclosure and the buyer has paid $179,000 for a homesite that initially sold for $369,000.
Moral of the story for buyers and Realtors relative to short sales - perserverance and stamina and you can get tremendous deals!