Home Buying in 95138>Question Details

grand52ma, Home Seller in San Jose, CA

I sold my house on an auction; It is taking over 45 days for settlement Can I have the 10% in escrow to pay bills; I am out of money

Asked by grand52ma, San Jose, CA Tue Jul 23, 2013

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It is not typical for funds to be released prior to close. However, everything is negotiable. If escrow was to close earlier and the buyer has asked for an extension you can talk with your agent about the possibility of the buyer paying and releasing some funds to you in exchange for the extension.

Since we are not a party to your transaction and do not know the details of the auction and contract we are only able to speak in general terms. Those who represent you are the best sources.

I wish you all the best
0 votes Thank Flag Link Wed Jul 24, 2013
It has been 4 months since my auction; They are having problems getting a loan for the house because they didnt have the other 10% for the bank. They want all 90% of the money to buy the house. The house is being bought buy the young son but the parents are helping. My house is a mobile home with a very nice extention added. It is sitting on 1 acre in the country in a very good school area. I did a lot of upgraded since my husband died; I am selling it because it is too expensive for the upkeep. They now have found a bank to finance but we havent heard anything in the last 8 weeks. I have asked my attorney if I could have all or some of the 10% and he said I cant have any before settlement. I have talked to the buyers and they are as upset as I am because of settlement taking so long. We cant seen to any answers form the bank. Fulton is the bank and all their loans from all their loans go to one bank in Lancaster Pa to have all the negotiations done, we think its the loan dept
Flag Thu Jul 25, 2013
Hi Grandma,

If you opted to sell your home at an auction, speak with the auction house regarding the close of escrow and disbursement of funds. This is, unfortunately, something that only the auction house can answer for you.

If, on the other hand, the home was sold in a foreclosure auction instigated by the bank or mortgage company, getting proceeds from that sale can take as much as 90 to 120 days. Part of the delay is time to allow creditors to contact the bank regarding payment of unpaid bills and liens against the home. These can include anything from a second mortgage, unpaid state and federal taxes, property taxes, utility bills and any recorded claims against the former property owner--including legal fees of the attorneys. If the home was sold at auction by the bank, contact the company and attorneys offices listed on your foreclosure notice and speak with the settlement department. The settlement department might act more quickly if you can prove that no unpaid expenses will be brought to the bank for payment or that you have paid the bills personally.

Good luck! Talk to the auction house if a private sale or the attorneys office if a foreclosure to get more information regarding payment.

Sincerely,
Grace Morioka
Allison James Estates and Homes
1 vote Thank Flag Link Wed Jul 24, 2013
It sounds like you have followed some bad advice.
Contact the Auction house.
0 votes Thank Flag Link Wed Jul 24, 2013
No. The money is in escrow for a reason. No one can use that money until the sale had been complete or terminated. See your attorney and see what they have to say.

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Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
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0 votes Thank Flag Link Wed Jul 24, 2013
You would need to check your contract but I would think it is very unlikely you would be able to get any significant amount of the 10% deposit. The escrow is created to guarantee that the buyer gets your house and you get the buyer's money.

What if your house was severely damaged before the buyer could complete the purchase? You would have to return the money.

In zip 95138 homes took on average 15 days to sell in June. Look at the days on market at http://julianalee.com/zip-code/95138-statistics.htm

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Cell 650-857-1000

Over 20 years experience
Over 1,000 homes sold in Santa Clara County and San Mateo County
.
Web Reference: http://julianalee.com
0 votes Thank Flag Link Wed Jul 24, 2013
Unfortunately, you can not. Check the contract for the close of escrow terms and contact the auction company regarding the delays. Why did you sell at auction in the first place? This is a hot market regardless of the condition of the property. Someone would most likely buy your house for cash and close in 7 days.
0 votes Thank Flag Link Tue Jul 23, 2013
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