House scheduled for closing on 8/10 but second refused to extend.

Ok, I really need advise as the buyer here.

Entered into contract in April for a short sale and (long story short) the leinholders BOA 1st and 2nd agreed on the price and sale. We are FHA and the original closing date was July 29th but our appraisal was not to our lender yet by that time. So, an extention was flled and BOA 1st agreed to it but sometime after the (original) approval, BOA 2nd sold the loan to Real Time Solutions (a debt collector). Why now?? Then on July 15th SB 485 was passed and the second leinholders could no longer go after the seller after the short sale was complete for money that they were out. Real Time Solutions decided that they would not grant us the extension unless we came up with a difference in the money they were out. BOA 1st argued with them stating they were still going to get $4800 from them and that's $1800 more than the standard but they wanted more and would close our file if something couldn't be worked out. Both listing agent and my lender agreed to pay $3000 more to Real Time just to "sweeten the deal". Real Time asked they put it in a HUD form and they would seriously consider it. This was last Friday and here it is Monday with no response from Real Time. The stupid thing is, Real TIme wouldn't get anything from the seller even if SB 485 wasn't passed...they are financially strapped and would file BK before this happened (as I'm told). Now, they are turning down BOA's offer of $4800 if they deny our extension. They get nothing if the house forecloses so why not grant the extension and take the $4800 plus $3000???

Here's where I need the advise...

Closing is this Wednesday (8/10), Doc's are ready and waiting to be signed, BOA 1st is on board, foreclosure is scheduled for next Tuesday (8/16) and the selling agent has informed my agent that he is calling Real Time first thing in the morning and telling them we are closing this thing. I asked my agent, "can we do that"? She said, "I sure hope so". What exactly would happen if we signed papers without them agreeing? Is this even possible??

Replies

Darlene Pieracci August 9, 2011 at 11:15am

Thanks Christina. Found out today RTR took our offer and we are scheduled to close tomorrow. BOA is giving them $4800 and we $3000. It was worth it to keep the house we want. Thanks for all the replies.
Christina Conrad August 9, 2011 at 9:48am

I have dealt with Real Time Resolutions as a 2nd lien holder and experienced the same thing as you..we had to give them what they wanted in order to close...you can't do a closing if the 2nd isn't on board..unfortunately a 2nd can derail a ss..the only way you can have a closing without the 2nds approval is if you pay the 2nd off in full
Darlene Pieracci August 8, 2011 at 7:30pm

I was thinking because we entered into contract before it was a law, Real Time could use that as the loophole...seems they should know that. Kind of like a "grandfather clause". In that case, they should ok the extension. We will not come up with the second lien being that it's not our problem. Just a shame because this was a very smooth short sale process...almost too smooth.

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