Home Buying in 53188>Question Details

Jenjen, Both Buyer and Seller in Waukesha, WI

Is the bank bound by our Short Sale contract after we (the buyers) receive their approval letter?

Asked by Jenjen, Waukesha, WI Wed May 27, 2009

I suspect that the answer to this question is to get a real estate attorney, and I plan to do that if we do not have resolution in the next few days, but wondered if anyone could shed some light in the meantime.

Here is the info on our situation:
We put in an offer on a short sale property with great trepidation on April 11, 2009. We read up on short sales and knew we might be in for a rocky road. We were pleasantly surprised to have verbal acceptance from the seller's bank (GMAC) on 4/17/2009 and a written approval letter from them on 5/4/2009. We had written a closing date of 5/22/2009 into the offer and it was specifically mentioned within this closing letter the agreed price, the closing date, the realtor's commisions and what each lien holder would receive. The seller apparently has two mortgages, but both are with GMAC, and both were addressed in this letter.

So on 5/21/2009 we find out we cannot close because GMAC is not providing payoff numbers?? Can they do that?

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Answers

2
We list and sell lots of short sales...there is something missing that you are not being told...there would be no incentive for a lender not to give the payoff amounts for closing...someone isn't telling you the whole story. The lender is the boss....it's a game of hurry up and wait...they get their ducks lined up and then they give a window of closing time....You should be worried about or concerned with things llike commission or how much more than one lien holder is paid ...that is all negotiated with the lender by the listing agent. Sorry you had what sounds like a less than sterling experience...get a heads up on the successful short sale experience (ask to have it verified) of the listing agent before you...fall in love or write on a short sale listing.
0 votes Thank Flag Link Sun Aug 9, 2009
Jenjen,
I do sympathize with your frustration. As I'm sure other agents will say- the rules on Short sales are constantly changing... as the lenders each have their own "rules". I would assume that your agent is in touch with the listing agent on a daily basis to keep up to date on the status. There may be some other extenuating circumstances that is causing the delay, and if your agent can find out what it is, they can advise you on how long you may be delayed. If you feel the home is worth the wait- and you've been in this long, see if you can get a firm closing date. Otherwise discuss with your agent what your options are. Otherwise, having a real estate attorney advise you may be the best option.

I also have a Buyer with an offer on a short sale- with GMAC- we've been waiting since March 17th- were supposed to close April 30th and it has now been moved to June 2nd.

All the Best to You!
Web Reference: http://GoPackerUp.com
0 votes Thank Flag Link Wed May 27, 2009
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