I recently closed a Shellpoint Mortgage Servicing short sale in San Juan Capistrano, CA. The property was located at 11 Via Cancion in Miraleste, one of Talega’s most desirable neighborhoods. The 5 bed, 2.5 bath, 3300 sq. ft. house sold for $820,000.00 on November 21, 2014. The property was encumbered by 2 liens, the first, as mentioned, was held by Shellpoint Mortgage Servicing and the 2nd was held by North Island Credit Union. As with all short sales, this one had its share of problems. The first thing that I had to deal with was a trustee sale. The reason that I the perfect advocate for anyone that is facing a distress sale is that I have the ability to switch my “hats” as needed. In this case, I had to take off my Realtor® hat and put on my attorney hat. In order to stop the trustee sale I had to make direct contact with Shellpoint’s legal department and implore them to stop the sale. Only through the intervention of the legal department was I able to stop the trustee sale and initiate the short sale. The second major issue I faced was finding a buyer. I originally priced the house at what I believed to be the fair market value. No offers came in. I gradually reduced the asking price over time until I started getting some interest. I secured a buyer willing to pay $820k for the home but after I obtained full approval from both Shellpoint and North Island Credit Union the buyer walked. One of the most frustrating pitfalls of short sales is when you finally obtain approval and the buyer walks. The reason the buyer walked in this case had nothing to do with the condition of the house, he just simply changed his mind. I was amazed at his decision because I believed, and still do, that $820k for this home was an incredible deal. I felt that while the buyers were not knocking on my door offering higher prices that in time the value of this house would increase.
Eventually I found another buyer and was able to obtain new approvals from both Shellpoint and North Island Credit Union. The new buyer secured a loan from Navy Federal Credit Union and now owns a wonderful home in a wonderful community.
If you or someone you know is thinking about short selling their home, please have them contact me at 760-692-5950 or email me at Michael@MichaelGaddis.com. I service Orange, San Diego, Riverside and San Bernardino Counties.