Foreclosure in 02860>Question Details

Amuckamuck, Both Buyer and Seller in 02860

Offer on home that is NOT a short sale

Asked by Amuckamuck, 02860 Wed Feb 24, 2010

I put an offer on a house that is NOT a short sale. I was told that if it was not an asking price offer the property/terms of sale would likely convert to a short sale. So I made an offer slightly over asking price just to avoid that. Then I was told that the bank has to approve the offer (the realtor said something about the offer being close in price to the pay off amount so the bank just has to verify that it exceeds that amount and once it does, everything should be fine). In the meantime, though, I am closing on the sale of my current home and will have no where to live if this doesn't move quickly. Has anyone ever heard of this happening?

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Dear Amuckamuck;
The first thing to look at is the listing information sheet you recieved at the time you made your offer at list price or higher. If there was no disclosure of short sale or bank approval than the seller is obligated to sell the property. Also you don't mention if you were dealing directly with the listing agent or had your own agent. Check with an attorney as you might have a good case to be the buyer of this property one way or the other. If there is anything i can do please let me know. If you are working with an agent currently then disregard this offer and i wish you the best.
Dan Liese "The Hard Working Nice Guy"
0 votes Thank Flag Link Thu Feb 25, 2010
This is a little strange; normally it is not difficult to figure out the pay-off amount for a mortgage. What could have happened was that maybe the seller did not take into account other expenses that he was going to have in the sale of the home.

So, it could be that after paying al the fees associated with sale, there is no money to pay the mortgage.

I hope that this help.

Feel free to call or email with additional questions.

Jorge Muralles
Real Estate Consultant
Web Reference:
0 votes Thank Flag Link Thu Feb 25, 2010
If it wasn't a short sale, the bank wouldn't need to approve it. The closing attorney could verify that the price would exceed the payoff in minutes.
Web Reference:
0 votes Thank Flag Link Thu Feb 25, 2010
It sounds like to seller is trying to cover themselves and might not being upfront with everything. They should of requested a payoff a long time ago to understand their options. The other thing is that the foreclosure sale date is very soon and they are looking for the banks approval to close deal and postpone foreclosure sale.

Keith Manson
First Weber Group
Certified Distressd Property Expert
Metro Milwaukee
0 votes Thank Flag Link Thu Feb 25, 2010
Doesn't sound right. The closing officer can get the payoff amount with one phone call.
0 votes Thank Flag Link Wed Feb 24, 2010
A, it is very unlikely that the bank would even get involved in the offer procedure or acceptance, unless it has been formally submitted to the bank as a short sale. They certainly wouldn't be involved in the approval or acceptance of the offer. In most cases a short sale would include a negotiator or attorney to deal with the bank. There are a lot of things that have to happen for it to even be considered for a short sale. This includes a hardship letter from the seller along with a lot of other documentation. In a case like this, if the seller is short on what they owe when they sell the house, and it isn't a short sale, then they are responsible for the balance of the loan when it closes, very simple. The loan balance ends up on the seller side of the HUD statement. It sounds like something else is in play here. I would get some answers right away, and you might want to consult with an attorney to help out with that. Joe
Web Reference:
0 votes Thank Flag Link Wed Feb 24, 2010
Short sales are by no means fast sales--you need to find out what the amount owed is sooner rather than later--if your offer is sufficient to cover the outstanding portion of the loan you don't need the bank's approval--and if these sellers aren't paying their mortgage, the more time that lapses the more they'll owe. Ask your agent to find out the exact amount owed.
0 votes Thank Flag Link Wed Feb 24, 2010
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