Why would an attorney discourage this short sale?
Hi All,
I am working with a buyer on a short sale, and after months of waiting we received a counter offer from the bank. The property is a 2-family building which the owner occupied one unit of until about a month ago. The buyer felt the counter offer was reasonable, so she signed an addendum to the contract to change the price, and we sent along to the listing agent. A couple days later, the listing agent told me she still didn't have signatures because the seller wanted to talk with his attorney before he signed anything (keep in mind he signed the original contract, just not the contract addendum for the higher price). That was two weeks ago, and since then, he has gone completely cold, not returning his agent's emails or phone calls. Then yesterday, the bank informed the listing agent that the file was being pulled out of the short sale process and the foreclosure was being initiated.
What do you think this seller could have been told by his attorney that would cause him to choose foreclosure over an almost approved short sale?
Replies to This Discussion
-
Permalink Reply by Jeff Payne on
-
Too many unknowns to give a good answer. Maybe there was something in the approval letter in regards to cash contribution, release of deficiency, who knows? Probably bad advice to not pursue the short sale even if there is a deficiency possibility because you can not get blood from a rock no matter how many times you hit it with a hammer and most likely the banks know that.
At least a courtesy call to their agent from their attorney would be nice.
-
Permalink Reply by Kimberley Kelly on
-
I would have to guess Jeff is correct. I'm in California too and those 2nds are the problem now with the "non-pursuit" language being removed by law as of July of this year. If there's a 2nd, I'd bet that's the problem??? Still, as Jeff points out, a courtesy call would be fantastic.
-
Permalink Reply by Raymond Kennedy on
-
Jeff is correct, too many unknowns. You don't know the full scope of the sellers situation. There could be other debts for the seller and they could be considering BK or other alternatives. This may have been a result of the lien holder asking for cash contributions or a promissory note for the remaining balance of a certain amount. If your state is a Deficiency State the attorney may have informed them that without the waiver of liability there is no benefit which is not necessarily true. I had an approved short sale with waiver of liability not close because my client received bad information from an attorney. It might not even have been the attorney, the seller could have simply freaked out over the fact they had no place to go. Someone may have informed them they could stay in the property for FREE for another year before the foreclosure will go through. The people are being fed all types of information from outside sources and their not always in a rational state of mind due to the stress that occurs in this type of sale.
-
Permalink Reply by Michael Kohler on
-
At this ppoint it doesn't matter what the seller is thinking or what the sellers attorney's advice was.
If you cannot get a response from the seller it's probably time to sign a cancelation and find another property.
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons