Providing you with the knowledge and tools needed to succeed with Short Sales
Hi everyone I am the buyer of a short sale I posted a couple months ago about my experience!!!
Well after 4 months 2/17/12 we got an approval from BOA. We are supposed to close on March 23rd 2 weeks from today.
Well this morning I received a phone call and emails from my realtor stating that sellers now want to back out of selling the home stating they are approved for a loan modification. But states he will reimburse everyone for their time and effort!
A couple of questions:
1) Are they able to back out just like that even after signing the contracts and approval letters?
2) Why would the bank offer a loan modification to the seller while accepting our offer?
3) Also our approval letter is contigent on closing on march 23rd so if we try to sue this seller obviously we won't be closing on march 23rd so that voids the acceptance, will we still be able to get this house????
If someone could please give me a little help or info with any experience with this I greatly appreciate it!!!
*We really LOVE this house and have already purchased a ton of furniture for it that can't be cancelled!!!!*
I think you need to visit your lawyer. Also ask the lawyer if he/she can find a way to void the furniture contracts.
I'd sure be tempted to sue the seller, but it will take 2-years and some legal costs, and the seller likely has no assets and there certainly is no equity in the home,
This is the risk in buying a short sale. Sellers can change their minds and there is not much anyone can do about it.
I agree with you. So many different departments within each lender and each operating independently. How we manage that is to centralize communications and then meet with the seller's to discuss those messages. It works for us.
It would be wonderful to see you get this house but you and your attorney really need to consider the "unintended consequences".
All points to consider when starting the fight.
I am not an attorney and these are simply past experiences I am sharing. Always seek Legal Counsel.
Best of luck,
Keep us informed as to what your attorney suggests and what actions you actually take on this. It could be a learning experience for all...
Wow, Deana, I totally get it about wanting to enforce the contract, and I would be on board IF this wasn't a short sale...but it is. I'm in Florida, I talked at great length with the attorney about the buyer's recourse (the contract that was supposed to close in a week) - sadly, while there may be legal standing, it does not necessary result in you getting the house.
Thom makes some good points.
I don't know about your state but the attorney I spoke to project $10-$12,000 just to get started.....yikes!
It's unfortunate that you have found yourself in this circumstance, but just like buyers have the right to walk during a short sale even after approvals, sellers also have that right! As an agent in California that works hard to get to the approval stage to have either side walk is very aggravating. A lot of time for nothing. If he's offering to pay something to the costs of what has already been put out, I would consider it. It may not be a house but it may be money that you already put out that you can use to find another house. Seems the seller and you both have emotional attachments to a house, unfortunately he is still the owner! I wish you the best of luck...just remember sometimes these things happen because something better is coming!
I know this is conversing about BofA, but Wells Fargo twice now has cancelled loan mods in order to do a Short Sale. They won't have both processes going on at the same time.
Two issues I see might have an impact;
1) If you are not paying cash - will YOUR loan still be available more than a month after you were supposed to close? Do you have to pay for an extension of your rate lock? - that can be expensive.
2) You need a new approval letter from the short sale lender for the new date. Many lenders have been approving short sales with closings before March 31 so they can get them off the books in the 1st quarter.
The good news is you'll be getting the house you want !
Many things can go wrong between now and closing, as you found out. You might wish to explore the avenue of closing and renting the property back until May 1. You'll need to go over your arms-length and other bank short sale restrictions - these may need to be modified or be prohibitive.
Otherwise, I'd suggest a stiff deposit only refundable after closing or if you fail to make it close.
BTW, don't trust a renter no matter what - I have been burnt so many times, I carry burn ointment with me.