Home Buying in 92530>Question Details

Smkkms78, Home Buyer in 92562

I am a first time homebuyer trying to buy a short sale that is scheduled for a trustee sale. It has been several months of back & forth until

Asked by Smkkms78, 92562 Tue Apr 5, 2011

finally receiving approval from the bank on 3/17/11, with a close date of 4/4/11. This date was fine with me (18 days), but my realtor insisted that there was no way to get this done by then and we would ask for an extension for a 40 day close. I did not understand this, but he insisted it would be no problem and we would open escrow on Monday (2 days after approval). Escrow still had not contacted me as of 4/4/11, although I was calling my agent &his office almost every day asking what was going on & why no one had taken my earnest $ (agent refused to accept a check). Finally, on 3/30/11 I was told they still did not have the extension approved, but would have it taken care of by the 4th & they did open escrow. Yesterday was the 4th and I still had not heard from my agent/ his office/ escrow. When I finally got a hold of the realtors office, I was told there is a trustee sale scheduled for 4/8/11 & cannot ASK for an extension until 48hrs before the trustee sale? Am I going to lose this house?

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Answers

7
Sounds like a nightmare. And unfortunately, you might. Whether the sellers lender (servicer) will allow the extension or not will be determined by the investor (decision maker/ note holder) guidelines.

The short sale is unique and requires educated and experienced Realtors on both sides. And there are many tactics that need to be implemented to facilitate the sale and ensure closure.

Best of luck
1 vote Thank Flag Link Tue Apr 5, 2011
Contact the trustee and find out what are the terms of the sale? In other words some trustees want funds in 10 days some allow 30. You can go to the sale bid on the house and possibly close within the time frame if the trustee accepts funds after 30 days. I've done this with an investor who had his loans lined up just needed a check from the bank.

Have a great day;

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit Repair
Ex-Mortgage Broker of more than 10 years
http://www.everlastingcredit.com
0 votes Thank Flag Link Fri May 17, 2013
Maybe.

The bank was ready to close on April 4. Although you personally were fine with that date, the fact is that you didn't buy by the 4th.

You say that you "did not understand" why an extension was necessary. Sometimes you have to keep asking until you get an answer that makes sense to you. I suspect it had to do with your financing, getting an appraisal, etc. But that scenario isn't uncommon; you wait a long time and then the bank comes up with a very short deadline.

The NAR Code of Ethics doesn't allow me to criticize other Realtors, and I don't. However, it is . . . ummm . . . unusual for an agent to predict that "it would be no problem" to get such an extension. Sometimes you can. Sometimes you can't. Problem is: It's unpredictable.

You say you were calling your agent and his office almost daily asking what was going on. So you called maybe 8 or 10 times? What answer did you get? Or did you even get a call back? You were doing the right thing by calling, but maybe after the 4th or 5th call you might have stepped it up a bit.

Finally, like the others here, I've never heard of a requirement that you can't ask for an extension until 48 hours before the sale. It's possible, I guess. Anything is possible. But that's generally cutting it way, way too close.

At this point, call up your Realtor's broker. If you can't get him/her on the line, show up in person. Ask your questions and make sure you get answers that you fully understand.

Good luck.
0 votes Thank Flag Link Tue Apr 5, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
you may lose the house if the investor will not approve extension. Good luck!
0 votes Thank Flag Link Tue Apr 5, 2011
Hi Smkkms78,

Short sales are so unpredictable that YES there is a chance you can lose the house. Unfortunately you have a lot of time invested with this property and your agent doesn't seem to have many answers but there is really no way to tell if they will extend it or not. It's up to the bank and the home owner/ listing agent to negotiate that.

With short sales always be prepared for the worst and know that there are other homes out there for you to buy if it doesn't happen for you.

Good Luck, sorry to hear your frustrating story!
Web Reference: http://www.ajsocal.com
0 votes Thank Flag Link Tue Apr 5, 2011
You may lose it. Banks sometimes will approve a short sale but not extend a foreclosure sale date. The best thing to do is have the short sale listing agent beg for an extension for the bank.
0 votes Thank Flag Link Tue Apr 5, 2011
All lenders are different (the seller's lender - not your lender). Since I don't know who the seller's lender is and/or the Short Sale negotiator at the lender's, I'm not sure about not being able to ask for an extension until 48 hours before the Trustee's Sale. I've never dealt with that before - I've been able to get extensions on my previous Short Sales without having to wait until 48 hours before the Trustee's Sale. As for "am I going to lose this house?", it's a possibility since it's past the approved close date of 4/4/11 and the extension hasn't been approved by the seller's lender yet. However, it's not an absolute that you will lose the house, just a possibility. It depends on the seller's lender, the seller's lender's negotiator, the investors (this is who the ultimate approval of the Short Sale comes from), and your Realtor.

I hope this answers your question,
Shanna Rogers
Broker/Owner
SR Realty
(951) 240-2205
http://www.RealtyBySR.com
Web Reference: http://www.RealtyBySR.com
0 votes Thank Flag Link Tue Apr 5, 2011
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