Thank you all for you help.

My realtor has been more than forth-coming with any information. However, the information is coming from a thrid-party (the seller's realtor) and its just my nature to want to know more.

I appreaciate all of your feedback and I hope this works out for me and the seller.

Thanks again.

H

Hi Hellen,

Unfortunately all the previous posters are completely correct in that short sales are never guaranteed until escrow has closed, the ink is dry, and documents have been recorded. I had a client where we were a week from close and the bank decided to put the property through to foreclosure immediately.

In regards to your last question, yes the bank most likely wants the extra $10,000 in cash at the close of escrow, which bottom line means that the bank in a twisted way has sold the property for $10,000 more than you are actually paying for it. It is very strange why banks would pull these last minute stunts when things are going so smoothly, but I agree with Keith. They've most likely found some last minute proof of funds and wants to decrease their losses.

Although the bank may not cooperate in explaining their reasoning, sometimes your Realtor may be in touch with a more sympathetic agent with the bank working on the file - they may be able to provide some more detailed answers. Good luck and I hope you do get this home - it sounds like you've worked thus far!

Best of luck!

Ellen

Hellen
A short sale requires the investor and the lender to take a loss. It is likely that the seller was found to have assets, and the lender wants the seller to participate in the loss.

There are many people involved in short sales that a confused about the process, and think that they are entitled to a short sale, when, upon further review, they are NOT in fact entitled.

I would be asking your Realtor these questions...not us

Hellen,

As stated in another answer, the bank basically sets the terms. The worse thing about short sales is that banks can pull out right up to the last minute. Fortunately, I haven't had any exceptionally bad experiences with short sales but a couple of agent in my office have stated that they've been at the settlement and the bank has refused to sign/agree to the HUD-1. I understand the problem you face. You want to close on the house but don't know if it will go through or not. Didn't your real estate agent make sure to put in a "kick-out" clause for you so that you could get out of the deal with your money if the bank doesn't perform by a certain time?

I guess my confussion comes in the bank accepting the offer and going through attorney review and all of a sudden having this new requirement.
When the bank asks the seller for "extra" money is this in form of a Loan? or just flat out cash? Also, how is this convient for the bank if putting it back in the market or going through foreclousure? I would think it will take longer.

thanks for your help.

Unfortanately with a short sale there are no guarantees and seem to be no desire on the banks part to move quickly. The bank holds all the cards, they do not have to accept the short sale. In most houses that are in this position the bank knows that if it is foreclsoed on the private mortgage insurance company will reimburse them up to 80% of the loan amount, in a short sale the bank only loses. You need to ask the listing agnet to expedite an answer whether the seller can even put down 10k and if not go back to the bank with this information so you can get some answers.; good luck working it out