Hello All,
Looking for any input. Short Sale: BofA 1st and Greentree 2nd. All cash offer was received on 8-15-12, the buyer is the broker who's being represented by another agent in his office. RPA stated 15 day escrow. Sellers accepted. Escrow has been opened, BofA gave an approval until 10-11-12, Greentree approved 10-2-12. The selling agent has ignored all communication from our office regarding closing... COE should on 9/29/12. They want to close on 10-11-12 date of expiration for the 1st. The 2nd has said that they will not extend at all. We gave buyer notice to perform, contingency removal... He has ignored... Today we gave a demand to close escrow. He claims his approval is until 10-11-12 asper the first.... His offer said 15 day escrow... The 2nd will not extend... Seller does not want to chance it...buyer/broker says, 'relax, the 2nd is just bluffing'...any thoughts???

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I've heard that and saw the language that was posted on SSS when the discussion was taking place.  I also showed it to my SS attorney. A notice of approval might satisfy the requirement, but we're not in CA.  If the law/rule requires that the actual approval letter be shared, and not a notice that outlines the key points of the letter, I'd think about taking the matter to RAPAC.  The approval belongs to the seller and no law/rule can force you to violate fiduciary -- it's cases like this that might get that requirement changed. 

There's no real reason not to share the approval letter with the Buyer.  With the Seller's permission, if the agent removes any personal information such as account number, etc. from the letter who really cares?  Providing the letter keeps the Buyer feeling good about the transaction.  There's no reason to "hide" anything.  Why does this requirement need to be changed?

Thom brought up a good point it may not be true cash - or something where they are pulling equity from something else (I've had that presented as "cash" before) or a bridge loan, etc.

BUT I find this to be a constant problem where lenders, buyers and their agents and closing agents all think b/c the approvals are for a later date they can just take it upon themselves to ignore the contract date and close by then- or just tell me to get an extension even though I tell them they are final up front.  As we all know closing on this can be a nightmare due to all the last minut things that pop up.  PLUS Green Tree requires funds to be received the day of their extension- this means wire needs to be confirmed and closing needs to take place prior.

 

Have you checked with Green Tree yet for an extension even though they may have said before none?  They really have nothing to lose as 2nd as long as you can keep it at the same price. I suprisingly just got a 2nd extension with them. 

be very careful with this,,if BofA finds out that the buyer is a broker, they may kill the deal. BofA has in informal policy that they do not want agents buying their distressed properties.

Paddy Deighan J.D. Ph.D

http://www.homesavers.pro

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