Home Buying in 76137>Question Details

Bp56691, Home Buyer in Fort Worth, TX

Bank stopped responding less than 24 hours before close of short sale? What's the best way to re-establish contact? And, any legal recourse?

Asked by Bp56691, Fort Worth, TX Thu Jul 7, 2011

On April 4th I submitted an offer for a short sale which was bank (BoA) and homeowner approved on April 7th (Quick approval explanation too long for Trulia - basically the homeowner was leaving the country). After the inspection I countered which was once again bank and homeowner approved. I have been approved for the mortgage (with everything done - except closing) and the title company has my funds (I wired it the day before to ensure BoA got the cash the same day to get the keys). The day before closing BoA's asset manager told their representing agent that she didn't have all the paperwork; however she received it 45 days before closing. The representing agent resent the paperwork along with previous emails showing receipt of confirmation. At the end of the day, she decided that she would be going on vacation and would not have time for the paperwork. No response for 1 week now. How do I move this along? Is it time to contact an attorney? And, would that help? Thanks

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O.K. you said "counter offer." Is this your counter offer? In a short sale if you counter offer the contract that they (the bank) accepted, than it is possible that they have to start the whole process over. This could be the hold up. Bank of America would have to go back to the investors and review the whole thing over again if you are trying to change something like price etc. Normally the bank will not even allow for a home warranty. Also keep an eye on foreclosure dates and make sure that the house does not have an auction date. I am seeing more and more "short sales" go to auction because the investors know that if the house is with an FHA loan or VA loan that they will end up getting possibly more more from the government than if they do the short sale. The bank does not have to ever agree to the short sale. I do not want to worry you because most of them close eventually, but just have your agent watch for it on the auction list. They should call them extremely long sales...
0 votes Thank Flag Link Thu Jul 7, 2011
Let me start by saying thanks to all you for answering. As a side note, I'm a first time homebuyer but a former bank auditor. I'm familiar with the process - just from the documentation side. Some may even say we're part of the problem... But, I've been completely patient with the process as I expected a number of challenges. But I thought I would tap into some great knowledge from all you. Now, I'll now address some of the questions:

Lynn: My buyer's agent is my own - not BoA's and is saying to stay patient.

Bruce: I agree - they all have a vested interest in the deal closing even BoA since they have already paid the HOA for back dues. The broker stated the paperwork will need to be redone due to time lapsed. The title company has attempted to contact BoA twice daily - no response same as seller's agent. The seller assigned a power of attorney at the time of closing. I know banks don't typically do that but they put it in the contract. I never closed my side.

Mindy: Absolutely correct. The contract does say "short sale and subject to lender approval." However, I take approval to be approval and I have the document that says they approve the sale. Just not the counteroffer. Which is why the inspection was done. The money was sent to the title company to ensure BoA would get the funds the same day - and I would get the keys the same day as well. I have a Realtor representing my interest. There's no doubt I'll have instant equity in this purchase - probably courtesy of that tax credit. And, of course all the other stuff involved in the market.

Donnie: I despise the idea of an attorney. But thought I'd throw it out to get a response. And, we only get 1000 characters to describe our situation so it doesn't leave us much to expand on.

Ron: Did she send the paperwork? Great question. She did and has email confirmation from the asset manager stating so. I don't think she (asset manager) would deliberately screw things up either. But, if Lynn is correct and she has 5000 properties on her desk I'm probably seen as another case - not a person. With present market conditions, it's probably the nature of the business. And, if she does have 5000 properties on her desk, a vacation is probably sounding pretty good right now. As an auditor, I agree with the suspicious part - until there's documentation to back it up. In fact as an auditor, if I had a penny for every time someone told me there's paperwork "somewhere but i don't have it", I'd probably be a millionaire. And I'm only 32. My Realtor has stated to be patient.

As I stated earlier, my objective was to get some insight or words of wisdom from a group of experts. I've been patient and will continue to be patient. At this point I should - with all this work, my realtor's probably making $1/hour. I'm greatly appreciative of her and I appreciate all the advice and support from you and further insight never hurts. Some of my responses may raise questions since as a buyer, I'm not an expert. But, as a disclaimer the above is my understanding. If anything from above provides clarity to the situation or generates new questions feel free to post a response. Greatly appreciate your time.

Thanks
0 votes Thank Flag Link Thu Jul 7, 2011
Where is your buyers agent? Welcome to world of short sales this is all standard, keep in mind these asset mgrs. have approx. 5,000 properties - or +

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Thu Jul 7, 2011
What does your realtor say?
What does their broker say?
What does the title company say?
What does your loan officer say?

They all want it to close as much as you do, so get them on board to help.

One question I have is if the seller is out of the country, how are they going to sign the closing docs? Are they coming back? That may be one of your issues.

Did you ever close your side? That's one strategy we use and our attorneys have suggest we use. After that you probably need to get your own attorney to review the paperwork and start sending demand letters.

Good luck...sounds like a tough one, but you can work through it.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Thu Jul 7, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
In my experience there is little anyone can do if at all. You can talk to an attorney but it will not get things moving.
Unfortunately this not unusual with short sales. The general public is informed about the short sale or foreclosure process, for the most part it is a difficult and frustrating process at best.
0 votes Thank Flag Link Thu Jul 7, 2011
I have done short sales with B of A before and they use a servicing company called Equator. What I have run into in the past is that B of A may approve it, but they also have to have their investors sign off on it. Until that is completed they cannot go forward with the sale. My best suggestion is to follow the advice of your Realtor. You could certainly talk to an attorney for legal advice, but provided that the contract is written as a "short sale and subject to lender approval," you may have no recourse. An owner can accept the contract all day, but without their lender signing off on it and allowing the sale it may never happen. I am hopeful that you have a Realtor to represent your interest. I have a buyer patiently waiting on a short sale with B of A right now too. I have suggested to them that they keep looking in case something else pops up. I also write short sale contracts so that the inspection period begins after written bank approval and that earnest money will be deposited after that as well. This way my buyer is out nothing but time.

If you do not have a Realtor than I would suggest contacting the title company for further answers. Short sales can be very frustrating and there is nothing short about them, but in the end you should hopefully have some instant equity in your new home.

Good luck to you,

Mindy Lowry, RE/MAX Heritage
682-559-1246 cell
0 votes Thank Flag Link Thu Jul 7, 2011
Forgive me for not understanding: Did "she" (I presume this is the Seller's Agent) re-send the paperwork or not? How do you know?

Where is your Agent in all this mess?
Have you contacted the Broker for the Seller's Agent? If you haven't, do so!

I wouldn't accuse anyone of deliberately screwing things up, (fancy legal term), but.....

I wish I had a dollar for every time I've heard that they "lost the paperwork" or "you didn't send the paperwork".
It makes you a little suspicious.

You can contact an Attorney, but I don't think it would accomplish anything.
If the Bank doesn't want to sell you the house......

Talk to her Broker, is all I can suggest.

Good luck and may God bless
0 votes Thank Flag Link Thu Jul 7, 2011
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