Short Sale Lost…maybe?
I represent the buyer in this particular short sale. The listing agent is well established, with a good reputation. The sellers elected to use the services of an attorney to negotiate the short sale rather than have their agent do it for them.
Our contract was signed on September 1 and as I understand it, the first lender actually came to terms fairly quickly. They allowed $3,000 to pay off the second lender, a small but not uncommon amount.
The second lender however did not respond to calls, emails for faxes from the attorney. An auction is scheduled for Friday, and this week they decide to reply. $3000 is not enough; they require $27,000 or they will not stop the foreclosure. My client upped their offer by $5000, hoping that the second lender would receive these additional funds and accept the deal. Apparently, the first lender demanded these additional funds and will only allow $3000 of the proceeds to the second.
The house is within 10% of the listed price and frankly in its present condition isn’t worth substantially more.
The seller and listing agent are all making a contribution to this in an attempt to stave off foreclosure. We are still 100% of our commission apart, with no give from the second lender. Does anyone have any experience with Lending Tree or a have any suggestions? I have contact information for the negotiator, but haven’t gotten beyond her voice mail yet. Any suggestions would be welcomed.