Posted by James on February 28, 2008 at 08:10:55:
You need a signed contract. They are just pulling your chain.
Do this: Go as HIGH as you can with the company and talk to them directly and start leaving messages with others if you have to.
You’ll get a yes or no right away.
I’ve done this more than once.
James
short sales - Posted by David McRight
Posted by David McRight on February 28, 2008 at 05:01:11:
I have gone through the whole process at this point and my short sale offer has been accepted by the lender, however, the lender did not sign the letter stating that they will take my offer. My title company says they cannot issue title insurance unless they sign the letter, which is on their letterhead. This title company says they are not used to doing short sales. – My question. Does the lender have to sign the letter or do I need to find another title company? I don’t want to lose the deal, but I also don’t want to get into a deal that should be left alone. I have been investing for several years now, but am not familier with short sales. Any help would be appreciated. Thanks.
Re: short sales - Posted by lukeNC
Posted by lukeNC on February 28, 2008 at 14:13:46:
the lender doesnt sign a contract accepting your offer on a short sale, they send a short sale approval letter with wiring instructions and what they’ll take as payoff with a deadline.
They dont have to sign that letter.
Re: short sales - Posted by Natalie-VA
Posted by Natalie-VA on February 28, 2008 at 13:01:27:
David,
I don’t do short sales, but this sounds like you need a new title company. Getting a signature on a piece of paper should be a routine part of processing a file. If your title company is not willing to get on the phone with the lender and get this taken care of, drop them.
Now, if the lender refuses to sign the letter, then go with the attorney that said he would close it. Just make sure you get title insurance.
–Natalie
Re: short sales - Posted by NJD
Posted by NJD on February 28, 2008 at 07:11:40:
“Does the lender have to sign the letter or do I need to find another title company?”
A verbal approval is worthless. The mortgagee will issue a formal demand letter stating the amount of the agreed upon payoff, PLUS, and this is key, the terms and conditions under which it will accept said funds.
The demand letter includes closing instructions which must to be followed to the Tee. Unless the mortgagee accepts the final closing documents as set forth in the demand letter, it may rescind the approval, and leave the parties holding the proverbial bag.
Review the approval letter with the seller and make certain the seller understands the consequences of selling short.
You cannot close without that letterhead. - Posted by James
Posted by James on February 28, 2008 at 06:55:42:
If they don’t sign the letter, you’re out this time and money.
I’ll say the deal is BUSTED. Next time, make sure you get EVERYTHING in writing before you try and close.
Quick story:
I once was working on 275k worth of property (for my area, that’s HUGE). Got to the day before closing and I still had not recieved the signed letter…called, called, called…no answer.
Finally went above the guy’s head I was dealing with to his boss…he called me back in 5 minutes after
getting off the phone with his boss. “James, I’m sorry, but I have to send this to a group in Texas
to decide.”
I won’t put what I said then. It was not pretty.
Get the letter or drop it.
Good luck!
James
Re: short sales - Posted by David McRight
Posted by David McRight on February 28, 2008 at 07:56:15:
NJD, I do have a letter with instructions on how to get the money to the lender and an accepted short sale amount. They just didn’t sign the letter. I have one lawyer saying that’s ok and another that says it’s not ok. Should I drop this one and go on to the next one?
Re: You cannot close without that letterhead. - Posted by David McRight
Posted by David McRight on February 28, 2008 at 07:59:26:
James, I do have a letter on their letterhead. They just didn’t sign the letter. Should it stop the deal if they refuse to sign their acceptance letter?