Home Buying in 88011>Question Details

ldawn_17, Home Buyer in 88011

Can a short sale bank ask the seller to pay more money 3 days before closing?

Asked by ldawn_17, 88011 Wed Oct 24, 2012

I am trying to purchase a short sale. I initially offered the listed price of $99,000. The short sale bank came back and said that they would not accept less than $105,000 for the property. I agreed to the $105k sales price and would proceeded with all the necessary arrangements. All inspections have been done all of my lender paperwork is complete and approved and the closing is scheduled for 3 day from today. This morning 3 days before the closing date the short sale bank has come back and said they will only approve the deal if the sellers pay $8,100 for taxes, commisions, and closing costs related to the transaction. Can the short sale bank ask for this 3 days before closing?

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Answers

6
Yes, they can do that, and they do.
And you can tell them where they can stick it, yes you can.
You can also tell them that you will meet them in the middle and contribute $4,000.
You can do that too.

Good luck and may God bless
1 vote Thank Flag Link Wed Oct 24, 2012
Can always ask but whether or not they get it or it is appropriate depends on the specific terms of your contract.
0 votes Thank Flag Link Sat Jun 15, 2013
On a short sale approval the lender usually issues an approval letter stating the amount that they need to net and a closing deadline. A preliminary settlement statement (HUD-1) showing the net amount due to the seller should have been prepared by the title company and sent to the short sale lender for approval. Their approval is usually based off of this statement using the net. I would need to know a lot more about the transaction to figure out what went wrong, but it sounds like the bank might of approved $105,000 net which would mean a sales price of $113,100. I would ask your agent to provide you with a copy of the approval letter.
0 votes Thank Flag Link Wed Oct 24, 2012
I wish I could give you a definite answer on that, but unfortunately that is a legal issue. An attorney might be able to compel them to abide by the terms in the letter, but you would need to seek their guidance on this issue.
Flag Thu Oct 25, 2012
If the approval letter shows a $105k sales price and not a $105 net amount can they be asking for more money now?
Flag Wed Oct 24, 2012
The tricky thing about short sales is that you have to play by the banks rule and they do whatever they want. Even if that means its not fair to the buyer. I suggest you still try to negotiate with them but just keep in mind in the end it will be up to them. If you have anymore questions send me an email. I've work with short sales in Las Cruces. Hope this help!
0 votes Thank Flag Link Wed Oct 24, 2012
The bank can ask for anything they want to... but you don't have to say yes. You should try saying no first and then if they say ok, we'll terminate, you have to decide if it is still a good enough deal for you to close. Frankly, someone dropped the ball by not making sure this was all addressed earlier on.
0 votes Thank Flag Link Wed Oct 24, 2012
It's not uncommon for a bank to do that in a short sale. They could also terminate the deal prior to closing. These type of properties can be a challenge.

Leigh-Jo
Syan Real Estate
Call/Text: (505) 730-8181
Web Reference: http://www.Syan.com
0 votes Thank Flag Link Wed Oct 24, 2012
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