Replies to This Discussion

Permalink Reply by Esther M. Camarotte on July 8, 2010 at 1:57am

Go get a real estate attorney. You need legal advice here. Please be sure that the attorney's specialty is real estate in your state.

Permalink Reply by Kimberley Kelly on July 8, 2010 at 2:27am

Never heard of this, but agree..consult a real estate attorney in your local area. Sounds insane to me, but the banks ARE insane, so wouldn't surprise me entirely..

Permalink Reply by Jennie Blackburn on July 8, 2010 at 3:00am

If consummation of the short sale was contingent on having the approval & insurance letters signed by the Seller, BoA doesn't have to reverse the short sale. Technically, the short sale never happened. The title company may be able to share the approval letter and closing instructions, which is where BoA's conditions might be spelled out.

Jennie Blackburn
www.StopFloridaForeclosureNow.com

Permalink Reply by Ute Ferdig on July 8, 2010 at 3:35am

Sorry you have to deal with this unfortunate situation. Who was in charge of the closing? There was somebody who was supposed to make sure that all the short sale approval conditions were met. The seller not having signed the approval letter sounds like a big deal, but it really should not affect your rights as you had no way of knowing if the seller had signed everything (this is not intended as legal advice in any way or shape - just my opinion). You most definitely should consult with a real estate attorney who is familiar with closing issues. Not sure that your title insurance would apply as what happened does not really have anything to do with a title defect that existed prior to the closing.

Permalink Reply by Ute Ferdig on July 8, 2010 at 3:58am

I wanted to add one thing to my post. As listing agent, I always make sure the seller signs the approval letter as I want proof that the seller agreed to the terms. That's done as part of providing the buyer with the approval to show that the short sale condition has been met. In my view, just having an approval from the bank without the seller's signature is meaningless. When I represent a buyer, I require a signed copy of the approval letter as I don't want my buyer to spend money on inspections and appraisal without having written proof that the seller agrees with the terms of the approval letter.

Ute Ferdig said:

Sorry you have to deal with this unfortunate situation. Who was in charge of the closing? There was somebody who was supposed to make sure that all the short sale approval conditions were met. The seller not having signed the approval letter sounds like a big deal, but it really should not affect your rights as you had no way of knowing if the seller had signed everything (this is not intended as legal advice in any way or shape - just my opinion). You most definitely should consult with a real estate attorney who is familiar with closing issues. Not sure that your title insurance would apply as what happened does not really have anything to do with a title defect that existed prior to the closing.

Permalink Reply by Elaine Kan on July 8, 2010 at 11:30am

I am sorry you have to go through this. Even if the listing agent did not upload the signed approval letter, title should have had them signed at closing. Try to go back to escrow officer at Title and see what they say.

Permalink Reply by Paul Kuriatnyk on July 9, 2010 at 9:52am

I am sorry for your situation. Strange that you had to pay additional "fees" .

Most, if not all approval letters are clear on these requests upfront. In a perfect world, Escrow and the listing agent/Shortsale Negotiator will catch this before funding.
Yes they will threaten to reverse or return the funds if those docs are not signed and uploaded in the system.

I would have my agent get in touch with the listing agents Broker. Somehow they need to obtain the sellers signatures on the requested docs. Also, contact I would contact my Trusted RE Attorney.

Permalink Reply by Ben Racela on July 10, 2010 at 2:48am

It is always important that you as the buyer is aware of what to expect during a short. Now that being said.

In a short sale not every fee will be paid by the lender. Typical fees not paid by the lender are HOA arrearages, HOA transfer fee, home warranty, or pest inspections just to name a few. Even if though those fees were identified in Equator does not mean they will be approved.

The interesting thing is that title seems to have missed executing (seller's sign) the short sale agreements. If the seller's were not at the closing there must have been a representative who had a Power of Attorney to sign those closing docs. another option is that title has sent docs to the sellers so they can sign and send back. Those short sale docs are part of a short sale closing and title should of had them prior to the closing date. Finally the seller's agent must have been in contact with the sellers and should be able to help with getting those docs signed. BofA will not accept the wire since the agreements were not fully executed. I cannot believe that title has allowed this to close without seller's signatures on the necessary agreements.

I suggest that your listing agent contacts BofA, since they have the authorization on file and explains the situation to the closing agent. What they want is additional time to get their short sale agreements signed and sent back. Communication is extremely important when issues occur in a short sale. After that have the listing agent do their part and get in contact with the seller's to explain the issue and get those agreements signed. Once signed send them to title and the title agent can email them directly to the negotiator. The title agent should have the closing agent's email.

On you last item identified in your email. I agree with everyone and that you should consult with a real estate attorney about the liens and BofA's right to recind the short sale.

Good luck.