After 1 year received approval and now seller doesn't want to continue - Help!
Can anyone help with suggestions on what I can do if the seller refuses to move forward after receiving the approval letter from the lender?
I have been working on this file for over 1 year now. We finally received the written approval letter from the lender, we have been in the process of closing. Disclosures have been signed, appraisal been ordered. I even had to negotiate with a collector to reduce a debt that was attached to the property.
We are suppose to close by December 15th. After all this, the seller has been ignoring all my calls and emails recently. Today I received an email from her stating that she has been speaking to someone and that a short sale is not in her best interest right now and that she will have to get back to me later.
What????? I am so frustrated. Has anyone had this problem and what did you do about it?
Replies to This Discussion
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Permalink Reply by Wendy Rulnick on
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Cindie - It's a difficult position when your client appears to want to default. If she doesn't respond to your phone calls, you really have to inform the buyer's agent. Also, see if the seller will respond to calls from the title agent. If she defaults, it's then a legal matter between the seller and buyer. As tough as it may be, move on to something more productive.
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Permalink Reply by Cindie Schulz on
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Thank you Wendy. You are right, I need to move on. Living life is about learning lessons. Thank you for your response.
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Permalink Reply by Beverly Cibulsky on -
The seller appears to have gotten comfortable with a "rent free" lifestyle! A lot of seller's dont believe a short sale will happen, the someone that told her a short sale is not good, probaby also told her to try short sale, you can live rent free longer! Wow 1 year rent free and they have to give that up! Well sad to say, you may have been used! But you are the better person. The only possibility is to show why a Short sale is better than foreclosure. (credit, job ref, etc) Here we are working for nothing! It's real estate after all! Be the better person Cindie! (dont give up on short sales, you may want to qualify the seller better! in the future)
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Thank you Beverly. A BK attorney company got a hold of her so now she wants to buy more time by filing bankruptcy. She was on board and very cooperative with showings and open houses. She even told me that she was going to move in with a friend and she wanted me to see if I could speed the process up.
This file was not easy to negotiate. During the course of this short sale we received a couple of offer but the lender declined them. I had to restart the process two additional times because every time the value came in crazy. Finally they accepted this offer and now she is backing out. What the......
After I received the approval and told her we have 30 days to close, that is when she changed. I guess reality set in. You are right, people get use to living rent free. Not fair but I will be the better person.
Thanks for the support.
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Permalink Reply by Kimberley Kelly on
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This Stream is interesting and a reminder that some people just do want to milk the system. Or..perhaps sellerfeels it is to her advantage to just hold and then walk..after a year, her credit is as damaged as it's going to be whether she shorts or forecloses..I'd let it go..
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Yes, you are right, I'll let it go but the selling agent is furious. Buyer is crying and can't believe someone would do this. Buyer wants to sue and agent wants to file a law suit for her commissions. I would like to also. But the chances of us collecting anything is slim.
What a mess!
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Permalink Reply by Bryant Tutas on
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Cindie. The first thing you need to do is check the listing and the purchase contract to see if they are still in force. If they are then there may very well be legal remedies available to the listing broker and the buyer. If they are expired then it's over.
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Yes, the listing and the purchase agreement are still in forced. Our attorney said we do have the right to sue for our commissions but because the amount exceed the civil court amount we would need to sue in superior court which will cost us more in attorney fees.
It doesn't feel good working for free. :-(
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Permalink Reply by Richard on
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Cindie,
It would seem this person is just milking the system as stated above. What an awful thing to do to someone. If there is any way of sueing to recover your fees, you should. As a buyer, I'd also consider doing the same.
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Yes, I agree. I'm afraid this may happen more in the coming year because so many people have been living in thier homes without paying a mortgage for over a year.
I qualified this seller, she cooperated all the way through. No signs that she wasn't going to go through with it until after the approval letter was received.
I wonder how I can avoid this in the future. Any suggestions?
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Permalink Reply by Wendy Martin on
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I do encounter folks who milk it while they wait for that ever-elusive loan mod approval, which most of the time will never come. However, I don't do anything until the seller meets me at MY office and we have a one-hour interview. That usually tells me exactly what I need to know about where their head is at. More work and investigation up front before taking the listing has helped separate the good candidates from the ones that will waste months of our time.
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Hi Wendy,
I agree that more investigative work up front should help. I would also suggest that NAR try and gain ways to apply liens against properties that do such a thing. There is a ton of effort and manhours invested to get to the final stage as Cindie has acheived. I know that won't help Cindie in her current transaction, however she is correct in that there will be more cases like this.
These people are no different than all the dead beat spouses that try and avoid responsibility while others carry their loads.
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