Anthony, the owner of a property on Angela Dr in Phoenix, AZ, was faced with the challenge of selling a house he inherited that had a reverse mortgage. The complicated mortgage situation was compounded by the looming threat of foreclosure.
Anthony needed an experienced partner who could not only handle the intricacies of a short sale but also find a buyer willing to close quickly and efficiently. That’s where my team came in—and we were ready to make it happen.
The Seller's Challenge:
A Reverse Mortgage and Foreclosure Threat
Anthony inherited the single-family rental home but quickly realized the difficulties involved. The property was under a reverse mortgage, and Anthony had fallen behind on payments, leaving the home in danger of foreclosure.
To add to the stress, he needed to get the lender to agree to a short sale. The entire situation felt overwhelming, and Anthony needed to find a way out fast—preferably without needing to make any repairs or deal with a lengthy traditional sale process.
"I was overwhelmed by the reverse mortgage, but Rafael's team stayed in touch for over 8 months and made the process easy when I was finally ready."
Anthony Love
Distressed Homeseller
Thankfully, Anthony had already been in contact with us for months, and our continuous follow-up paid off when he was finally ready to move forward. He knew he could trust us to handle the process professionally, as we'd stayed in touch throughout his challenges with the lender.
A Stunning Transformation
While only one older exterior photo of the property was available, the post-remodel images highlight the remarkable transformation achieved by the buyer. They emphasize the unlocked potential after Anthony decided to move forward with the sale.
Our Approach:
Persistence, Professionalism, and Partner Collaboration
When Anthony reached out to finally move forward, we sprang into action. My JV acquisition manager, Oggie, scheduled an in-person visit to the property to evaluate its condition and discuss the next steps with Anthony. During this meeting, Oggie offered $155,000, which served as the starting point for negotiations with the lender.
Since the property needed to be sold through a HUD-approved short sale, I took on the role of listing agent and began negotiating the short sale with Anthony's mortgage lender. Meanwhile, Oggie connected with a local remodeling investor who was eager to acquire a new rehab project and offered $171,000, which gave us leverage to justify the lender discounting their payoff.
The key to success in this deal was staying persistent and having strong partner collaboration. We agreed to pay all buyer-side closing costs and ensured the contract was contingent on inspection, with a fast 12-day close of escrow once the approval letters were in place.
Our team worked diligently to coordinate all necessary documentation, market the property, and manage every step in the short sale approval process.
Step 1.
Discovery call to understand Anthony's needs and situation
Step 2.
Property walkthrough with acquisition manager and initial offer made
Step 3.
Drafted and executed purchase contracts, contingent on inspection
Step 4.
Negotiated short sale with lender and obtained approval
Step 5.
Sent contracts to title company and set up escrow process
Step 6.
Connected with a local buyer for a cash offer
Step 7.
Finalized transaction and closed within 12 days
Maintaining Control Through Uncertainty
The option to purchase real estate agreement, executed early in the process, ensured we could secure the transaction despite the challenges of a reverse mortgage short sale. By transitioning into the buyer’s broker role and collaborating with my acquisition partner, we successfully navigated lender negotiations over a 10-month period.
The Results That Made the Difference
The final purchase price for the property was $171,000, and after a few months of short sale negotiations, we received approval from the lender. Within just 10 days of receiving these approval letters, our investor buyer closed on the deal, and Anthony was finally able to put this stressful chapter behind him.
Anthony was extremely grateful for the way we handled the entire process, noting that he was impressed with how quickly we found a cash buyer and finalized everything. He was relieved that he didn’t have to deal with repairs or navigate the challenges on his own, and he expressed his appreciation for our experience in handling complicated transactions like this one.
$171K Cash Offer: Relief Delivered
Anthony received a cash offer of $171,000, providing him with the financial relief he urgently needed to move forward.
Quick Approval: Foreclosure Avoided
Lender approval for the short sale was secured within 2-3 months, ensuring the seller avoided the burden of foreclosure.
10-Day Close: Seamless and Transparent
The sale was finalized within 10 days of lender approval, ensuring a smooth and surprise-free closing process
Earning Trust and Delivering Results
This realtor commission agreement reflects the $4,460 I earned as the buyer’s broker. After the property’s remodel and resale, I also earned a percentage of the profit revenue through a partnership with my acquisition partner, demonstrating the value of teamwork.
“Rafael helped me navigate a reverse mortgage short sale!”
Dealing with a reverse mortgage short sale was overwhelming, but Rafael and his team were up to the challenge. They stayed in touch with me for months, guided me through the lender approval process, and found a cash buyer to close quickly. Their knowledge and commitment were invaluable, and I would recommend them to anyone facing a complex sale.
Top Tips for Handling a Short Sale with a Reverse Mortgage
Short sales involving a reverse mortgage can be tricky, but there are strategies that can help make the process smoother. Here are some lessons from Anthony’s case that could help others in similar situations:
top tips for
realty success
Work with Experts Who Understand the Process
Short sales with reverse mortgages involve unique complications. Work with a team experienced in these kinds of transactions to make the process easier.
Stay Persistent and Keep in Touch
It’s important to have a buyer who will stay in touch and be ready when the time is right. Persistence is key.
Act Quickly When Approval is Granted
Once the short sale is approved, closing quickly is essential. Working with a cash buyer can make this possible and prevent any risk of losing the approval.
Protecting Everyone’s Interest
The custom short sale addendum, with its detailed terms and conditions, ensured all parties—seller, buyer, and lender—understood their responsibilities and protections. This document highlights our thorough approach to avoiding misunderstandings and ensuring a smooth transaction.
Lessons Learned: Persistence and Partnership
One of the key lessons from this transaction was the importance of persistence. Anthony was hesitant to sell for months, and it took consistent follow-up to build the trust needed for him to move forward. Staying in touch, listening, and offering support when it mattered made all the difference.
Another takeaway was the value of having the right partners. By collaborating with Oggie, a local broker, and leveraging my experience with short sales, we were able to execute a complex transaction smoothly and efficiently.
Need Help Navigating a Complicated Mortgage Situation?
If you’re dealing with a reverse mortgage or a property that’s facing foreclosure, my team and I are here to help. We’re experienced in handling everything from negotiations to closing, making sure you have a smooth, stress-free experience.