Posted by Julie on February 03, 2005 at 16:32:50:
Thanks for the feedback. The seller did not share with the bank that she was selling or that she got an offer until after she sigbned mine. I guess they must have expected it because my understanding is that the bank was aware that the couple is divorcing. I guess the bank got a surprise as much as the rest of us.
Surprise Real Estate Short Sale - Posted by Julie
Posted by Julie on February 02, 2005 at 20:49:50:
I made an offer on a home being sold through Homeowners Concept subject to the sale of my home through Century 21. The seller signed my offer with her agent and accepted the earnest money. Seller now says that this is a short sale by a very signifigant amount and their lender is squirming. The seller is divorcing and neither husband nor wife can afford to stay on that property. My agent can’t get involved because she works fro a broker, but commented that this could mean a lawsuit against seller and agent for accepting the offer knowing that it was less than the amount owed on the property. Meanwhile apparently my home is very marketable and offers are pouring in. I looked for a home for 2 years before submitting an offer so jumping into a different property is not what I want to do. I am a single mom of 4 young kids and can’t take that risk. What are my options? Did the buyer and agent really do something illegal? I spent a lot of time and money on this already. Any additional insight you might be able to offer would be greatly appreciated.
Sincerely,
Julie McDonald
Re: Surprise Real Estate Short Sale - Posted by chet
Posted by chet on February 03, 2005 at 22:16:56:
If you really want the place, get a good atty and discuss it w/ them.
If you want the easy road, get your deposit back and walk.
Re: Surprise Real Estate Short Sale - Posted by River City
Posted by River City on February 03, 2005 at 11:29:35:
This home appears to be in a “pre-foreclosure” sale, which means that it could possibly be a short sale. Lenders allow this type of transaction to mitigate their losses. It is not illegal. Collecting $200,000 on a loan of $205,000 is better than going through the costs of foreclosure.
The reason the lender is balking is that there is a big difference in the offering price and the loan amount. The lender generally releases the borrower of all deficiencies in these cases, and they do not want to see a big difference.
In my opinion, the seller did nothing wrong by accepting your offer, other than not telling you that it was subject to approval by their lender. They do not know if it is acceptable until the lender gives their approval.