Jen, Both Buyer and Seller in Forest Hills, NY

Help with Short Sale mess

Asked by Jen, Forest Hills, NY Thu Nov 29, 2012

I am currently in the process of buying a condo in Valley Cottage, NY. We entered into the contract as a regular purchase and the seller's attorney stalled getting us back the executed contracted, our attorney found out that the contract was with the seller's bank and that he owed the bank more than he could pay. The bank refuses to negotiate and now we have to enter a short sale application. We found that the property listing was posted 67 days ago as a pre-forclosure. We believe the seller's attorney and listing agent deceived us in not disclosing the nature of the deal and we entered into a situation not knowing this wasn't a done deal or could drag on for months. Now we are moving out of our home with no place to go. What if any are our legal rights? I was led to believe that the listing agent needed to disclose the property is a short sale. PLEAS HELP!! Thank you.

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Answers

6
The problem should have been picked up in the title search. What was your communication like with your attorney he should have known about these problems & have been able to advise you.
0 votes Thank Flag Link Fri Nov 30, 2012
We are truly sorry to hear about your situation...

With short sales, many times the seller doesn't know that their home needs to be a short sale and agents often don't inquire about their financial status until it is brought up. The seller may initially list their property at a price that to them is safely above the amount owed to their lender.

As sales normally proceed, prices are dropped in an effort to identify a serious buyer and at some point the seller will come to grips with the necessary fees for closing. All of this, happening after the fact, sets the stage for you being in the situation in which you find yourself.

As far a your legal rights are concerned, consulting an attorney on this is advisable.
0 votes Thank Flag Link Thu Nov 29, 2012
Your attorney should be the one advising you on this.
Tom Brady SFR, e-PRO, SRES, GREEN, BPOR
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
631-682-8660
Tom@BradyFamilyRealty.com
http://www.BradyFamilyRealty.com
#1 Listing & Selling Brokerage in NY
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803
0 votes Thank Flag Link Thu Nov 29, 2012
Hello Jen. You have just entered a very unfortunate yet common situation related to potential short sale option properties no matter the location. The vast majority of these type properties have not been approved by a lender for a short sale option. Most banks will not consider the option without first receiving a written offer to purchase contract from a potential buyer along with the seller's financial and hardship data. I sure do wish you the best!
0 votes Thank Flag Link Thu Nov 29, 2012
Your attorney can better advise as to any legal rights, therefore consider a consultation....if you are not working with an agent of your own at this time, consider the idea for your future real estate needs...
0 votes Thank Flag Link Thu Nov 29, 2012
Tough question to answer but certainly a Short Sale should have been conveyed by the Sellers Agent unless there was a miscommunication/deception of the Seller. Normal research and Title should have revealed the problem. I feel terrible you are going through this and hope your situation is rectified quickly. At the very least you can probably get out of this Contract & get your deposit back. Best of Luck to you!
0 votes Thank Flag Link Thu Nov 29, 2012
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