Upside down with no way out!
After numerous failed attempts to sell their Ridgefield home, my clients were forced to accept that their property simply would not sell for the amount they needed to pay off their FHA mortgage. Like many of CT's most expensive towns, Ridgefield has been experiencing a downward trend in home sale prices for several years now.
Pursuing the short sale.
Realizing they had over $100,000 of negative equity and no way to pay the difference, the sellers decided to cut their losses on the home and move forward with a short sale. FHA short sales can be very particular and in this case with both owners living out of state their only option was the FHA streamline short sale.
The home was properly priced and went back on market as a short sale. A buyer was quickly secured, but then covid19 shutdowns began. Our sale quickly unraveled as the buyer lost their financing due to lender guideline changes. The buyer attempted to get new financing, but ultimately failed, leaving us to relist the property. By this time, the shutdowns were heading towards ending, and the market was quickly getting very busy.
Short sale approval!
A bidding war ensued and a strong buyer was secured. Several more weeks passed as Pennymac finished processing the FHA short sale and a short sale approval was issued!
We closed soon after with the sellers fully forgiven of over $100,000 of excess mortgage obligation!
Last Updated on September 9, 2020 by Minna Reid