It is alway best to listen to you realtor if you have one.
Short-sales are complex and there are in a way two sellers. One is an actual person/seller and then there is bank/who approves terms.
Basically heres what i understand from
Your description: you and sellers agree on the terms and bank approved terms of the sale - to close on set day. Then you asked for extencion- which was never granted/executed by the seller - there for you have no extencion at thIs time.
When you presented request for extencion bank probably had to order another appraisal for investor approval. Most likely appraisal came in higher than the contract price - there for bank told seller to increase asking price in order to receive an approval. Hence you see higher price for the property marketed.
As far as legal grounds - I think it's best to talk to your realtor and see what he/she has to say. Check with attorney as needed.
Help with Any Real Estate Transaction - Buy or Sell Â
Call me 424-777-9377 - Â FREE CONSULTATION! Â
Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855) Â ext. 777.Â
President - RealtorÂ®Â
- Trust Sale Realty -Â
Residential & Commercial Real EstateÂ
Toll Free: 1-855-TRUST-55Â
Toll Free: 1-855-878-7855Â
Fax: 310-356-4925 http://www.TrustSale.com Â http://www.TrustSaleRealty.comÂ
- We Hire CA Licensed Real Estate Agents -Â
If you are the Buyer, you can enforce your contract to the Seller, or vise-versa. You don't have any contract with the lender. You cannot enforce anything to the lender. The seller is the one who can enforce legality to the lender.
Ask a lawyer for advise and to revise your contract. Check this site for free legal advise: http://www.avvo.com
Broker Associate, Realtor
DRE License # 00800144
450 Washington Blvd
Marina del Rey, CA 90292
Office # 310- 754-8108
Cell # 310- 699-3990
As you may have noticed from the other replies, the bank can do almost anything it wishes to do, until they agree to the HUD-1; which is not signed until 1-2 days before closing.
In non Fannie or Freddie loan short sales, banks are not required to work with the homeowner and/or buyer. It is a voluntary program. On the other hand, Fannie and Freddie loan banks need to work with the homeowner if they qualify for the program. Of course, banks are required to sell the homes for as much as the local market will bear, thus the possible increase in price.
Talk to your current agent, they should be able to provide the exact explanation for your particular case.
Realtor, Certified HAFA Specialist
I would be curious to know what your contract price was & what the new value is that the bank is wanting the property to be 'remarketed' at or what amount they want you to now pay?
What's the percentage difference between these 2 figures.
If I were the listing agent, before hanging you out to dry, I would have resubmitted your contract to the bank at the price you had offered previously. And try to fight it a bit more, on top of that I would suggest to order a formal appraisal & submit that so they're seeing that + their own appraisal report.
I would also be curious to know if the listing agent was present when the bank sent out a new appraiser & did he or she have a comps report in hand supporting the amount you offered?
All short sales are subject to approval & beyond that are subject to the lien holder receiving & accepting the Final HUD-1 Settlement statement which they won't get until 1-2 days before closing so they can give the final green light to close. So, I suppose they can do anything they want in the meantime. Trust me, I know that's a horrible answer, but this is how the banks are acting sometimes.
Shoot me an email directly if you'd like to talk about this further, I don't look back on this same Trulia thread for answers posted after mine.
Emily S. Knell
Realtor Since 1996
Realty ONE Group
Short Sale Specialist - 99.8% closing success rate!
But please, do yourselves a favor, and work with a Realtor next time :)
I am sorry you are going through this. I just want to point out that in a short sale, the bank is not a party to the contract. The bank just needs to agree to accept less than they are owed and release the lien on the property. All the bank did was say we will accept the current amount if you close by 12/29. Also, it is not the bank that is remarketing the property it is the current owner.
If all parties did not sign the extension and the closing date has passed, there is no longer a contract. Your Realtor should have made sure the extension was signed prior to the scheduled close of escrow. I would have your Realtor contact the listing agent or escrow company to get the cancellation of escrow paperwork so you can get your earnest money deposit back - if the bank is not going to extend your close of escrow. Since you do not have a contract any longer, if you still want the house, you can submit a new offer.