Hi all,
Long story short, been pursuing a short sale since August 2011. FINALLY got short sale approval (well actually about 8 weeks ago, but the letter never arrived, so that took another 5 weeks to get sent, and then it arrived EXPIRED and we had to get it extended!) and now I'm waiting to schedule a closing date. The lawyers say they are waiting for the seller to find a place to live and vacate the house.
In the original contract it said we should close "within 15 days of getting written short sale approval", but now my lawyer says because it does not provide that “time is of the essence”, it is not a date certain, and the seller is allowed reasonable time to vacate.
The approval letter is good until March 15th, and I'm assuming they will drag their feet (just like EVERYONE has during this whole ordeal) and push this right to the deadline.
Does anyone have any idea what reasonable time should be? 30 days? This seems to be a part of the short sale process folks don't really talk about! Getting the seller to move out once you FINALLY get that approval.
Thanks so much, Cam
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The seller should have found a place already if you started this in August. Sorry, but if your P&S states within 15 days of short sale approval, that's it then. I don't see that "time is of the essence" is necessary as the 15 days pretty much states when you'll close. I would make it clear that if they aren't out by X date, that you are going to walk (even though I sense you don't want to) 30 days is reasonable, but if they signed off on the 15 days then sorry, that's when they should be vacating.
Thanks for the reply. It's a tough spot as after a six month wait I'd hate to blow the deal for an extra few weeks wait, but I've done everything almost immediately when asked and the other side and bank have not. Do others have this issue with short sales where it seems like the seller is more concerned with delaying and risking forclosure than getting the deal done? I understand the seller isn't happy about losing their home, and is facing hardships as it is, but the buyer is helping them by lessening the credit hit...I've never had such a hard time trying to write such a large check!
When the process of getting the short sale approval can take so long, have others had trouble with the sellers finding a place on short notice once the approval finally arrives? I mean, they can't really look for alternative housing 6 months in advance all the time. Do the sellers agent help them find a place to live or is that all on the seller?
In my case I just get the sick feeling that they didn't even bother to start looking until the approval came in, and had their head burried in the sand as to the REALITY of the fact they are losing their home.