In a short sale / foreclosure situation emotions run high and often common sense goes out the window, you may be able to sue for specific performance but it will take time and in a situation like this time is never on your side.
Talk to your agent and have them talk to the sellers agent, there may be a solution out there.

This happened to me, as a buyer, too. As we got close to the closing date, I think it really hit home with the sellers that they were losing their house and having to walk away with nothing. Then they got frustrated and since they had been living there so long without paying the mortgage already, I think they deluded themselves into thinking that it could continue indefinately. In the end, they threatened not to sign or to smash up the house on their way out if we didnt give them cash. Luckily, we didnt succumb to the threats and they still went away quietly but in the meantime it was very stressful.

Damian - I would want to know exactly what is going on from the seller's agent and would also ask my agent to contact their Broker-in-Charge if you are getting no reply. My guess would be the seller is having second thoughts about the repercussions on his/her credit, etc. of the short sale. This is the danger in dealing with short sales and foreclosures, they do not work like a normal transaction. Best of luck, Randall Sandin, Carolina One, Charleston, SC 843-209-9667

The lender canot make the seller sign...how does your agent advise you?

Hi Damian,

What is your REALTOR telling you? What advice is he/she giving you? Listen to your REALTOR. If no, REALTOR, then why not? Welcome to the world of short sales. This is just one of the many reasons why only about 10% of short sales ending up working out. If no REALTOR, call me to discuss the advantages of having a Buyer's Agent REALTOR assist you.

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PAUL WELDEN
Buyer's Agent REALTOR
HomeSmart
480-241-0081

I am not sure why he wont sign now. He answered our intial offer quickly. Everything was going good until about 2 weeks before the closing date. He submitted a cancellation agreement to the title company but we didn't here about it until a week later. I know he has tried to renegotiate his loan with his original lender. They didn't go for it though. I'm thinking he is now trying to get some kind of outside financing to save his house. He has really bad credit though and might be trying to use one of those stop foreclosure companies. Are those companies legit? A scam? I still don't understand why he would arrange a short sale and then accept our offer and then at the last minute try to back out. I'm pretty sure this guy is going to lose his house no matter what and it is a great house that would be great for my family. If it goes to foreclosure then I might have to bid against others.

Everyone here is right.. and one person posed my question - WHY? Why would the seller not sign? Is there a condition to it - like that he'll have to do a note payable for the deficit? In that case, maybe he'd rather have it go to foreclosure and then file bankruptsy. Remember, we are talking about parties who are basically "screwing" each other negotiating - and if one won't agree to something, then the other gets spiteful. Sorry for the bluntness, but it's true.

Nobody can make a seller sign.

The penalties are most likely that the bank will proceed with a foreclosure if the seller is not paying.

You can consult an attorney for remedies.

Why would the seller not sign your agents need to work this out since bank needs approve the sale however property is not foreclosed on therefore the seller has to sign the closing doc's. Need to move quickly on getting this resolved.

Hi Damian,

You need to consult your Realtor for this question to be answered property.

Good Luck,

Stew

Hi Damian,

You cannot force a seller to sign the closing papers. You may be able to sue the seller for performance on the contract, but I think that's about all that can happen.

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PAUL WELDEN
Buyer's Agent REALTOR
HomeSmart