Home Buying in 77845>Question Details

msfalen18, Home Buyer in 90278

I am in the final processes of buying a home, the seller's agent has been very unpleasant, threatening not to close, what are my rights?

Asked by msfalen18, 90278 Mon Sep 17, 2012

The home is a short sale, we are days from closing, she has been holding up the process and we have reason to believe this may be because she received a higher back up after I already started escrow. (The house is still listed as "backup status")

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The good news for you is that a back up is just that...a back up. You are in the first position to purchase...if you are getting close to the end of your current contract, go ahead and submit an amendment to extend the date. That will give you some peace of mind, even if you don't need the extra time.

I've worker many short sales and often the hold up isn't the agent but rather the bank. The sellers of the home won't receive any proceeds, so they normally don't care what offer is higher...the bank's main objective is to close the deal quickly-they don't want to start the process over again.

And, in most short sale scenarios-the bank won't look at back up offers...they only work the offer in the first position..

As to your rights-you have the right to purchase as long as the seller can perform. Without knowing what the hold ups are its hard to offer more advice. I can say that most of the short sales I've worked have been last minute closings...the bank lets you know about 48 hours before closing that they are ready...other hold ups have been bc the lender is requiring updated documents from the seller...which can be hard to get...and without them you can't get the property approved for the short sale.

Here is the most important question...do you know if the seller has received a permission to participate in a short sale approval letter? That would tell us a lot about where you are in the process.
0 votes Thank Flag Link Tue Sep 18, 2012
Joe--you make a great point. So many buyers don't recognize the value of a buyer's agent. As to the person asking the question....exactly how are they "holding up the process"?
0 votes Thank Flag Link Mon Sep 17, 2012
I do have an agent! NO way I could have done any of this on my own! She is well worth it and amazing. The seller's agent is not sending paperwork on time, making multiple mistakes on docs that need to be signed and are time sensitive as the house needs to close by Wednesday (last day of the bank granted extension) or its going into foreclosure. She also is withholding information such as the approval of the second lien holder just by not replying to emails or calls or not addressing it when my agent tries to contact her.
Flag Mon Sep 17, 2012
We're missing something here? Why would they not want to close and be threatening with you not to close? Getting rid of you even to try to get a higher offer, could kill the whole deal.....take too much time on a short sale and the home could go into foreclosure.

Now lots of things can and do go wrong with short sales. I haven't seen a number lately, but a surprisingly very high percentage never close and end up in foreclosure.

Backups come and go..... tell us the rest of the story and perhaps we can be of better assistance.
0 votes Thank Flag Link Mon Sep 17, 2012
I don't think this is a reflection on the listing agent at all. If she has gotten two extensions, that's a miracle worker and she has been working to complete the sale. I probably give the most fault to your buyer's agent for suggesting you as a first time buyer go after a short sale. I don't know the whole story so hate to point fingers though. Short sales are tricky and you have to be patient, and understand they don't always close and in fact many don't close. I'm surprised you have a valid closing statement already to sign loan docs and the title company has give you closing figures if the bank is not ready to sign off on it yet. Foreclosures happen only on the 1st Tuesday of the month in Texas, so not sure who is telling you foreclosure will happen in the middle of the month on a Wednesday? Believe me it is in the best interest of the seller's agent to get it closed. She will loose a lot of time and money too if it doesn't close and gains nothing if it does foreclose.
Flag Tue Sep 18, 2012
I am a first time home buyer so I am not well versed on all of this, sorry:(. The home will go into foreclosure Wednesday, the bank has already put 2 extensions on this house to close as a short sale and granting a 4th is probably not going to happen. Not sure why she wouldn't want to close, she has also made comments to my agent such as "sorry i have a lot of other home's to worry about" when she wasn't sending documents in a timely manner, inferring that this was not a priority to her as its not the only listing she has....who knows...she really doesn't give realtors a good name. It isn't to the seller's best interest not to close, unless there is a benefit to the seller's agent to foreclose rather than process a short sale, I don't know if she serves to benefit from letting it go on. I really don't know what to make of it. =/ Do I have the right to sue if she intentionally neglects to follow through with this purchase? I have already wired money to the title company,signed loan doc
Flag Mon Sep 17, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Your rights are spelled out in the contract that you signed. No less, no more.. There's not a thing you can do about your perception that the Seller's Agent is unpleasant. The negotiation process can be adversarial at times. That's just part of the business. Do you not have a Buyer's Agent? I'm assuming not since you're having to deal with the Seller's Agent. Now you see one of the values of having your own Buyer's Agent! If this deal doesn't work out, I highly suggest finding a Buyer's Agent to go to work for you next time.

Joe Stone - REALTOR®
Exclusive Homes Realty
http://www.exclusivehomes-tx.com/
682-777-0836
0 votes Thank Flag Link Mon Sep 17, 2012
Thanks Joe! I do have an agent who is AMAZING! Very patient, kind, and professional, the seller has definitely abused that and I understand dealing with unpleasant people is an unfortunate reality of life, I just want to know exactly how far she can go to obstruct the purchase. I am a first time home buyer so I am not well versed on all of this. The home will go into foreclosure Wednesday, the bank has already put 2 extensions on this house to close as a short sale and granting a 4th is probably not going to happen. Not sure why she wouldn't want to close, she has also made comments to my agent such as "sorry i have a lot of other home's to worry about" inferring that this was not a priority to her as its not the only listing she has....who knows...she really doesn't give realtors a good name.
Flag Mon Sep 17, 2012
Your rights are spelled out in the contract that you signed. No less, no more.. There's not a thing you can do about your perception that the Seller's Agent is unpleasant.

Joe Stone - REALTOR®
Exclusive Homes Realty
http://www.exclusivehomes-tx.com/
682-777-0836
0 votes Thank Flag Link Mon Sep 17, 2012
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