Home Buying in Chicago>Question Details

Leslie, Home Buyer in Chicago, IL

Our hearts are set on a shortsale home and as I am getting to realize it allready started off bad. We called

Asked by Leslie, Chicago, IL Sun Feb 1, 2009

the sellers agent on the property who then told our agent that we had to outbid the home by 10k more. So we did and made a contract with our agent. When our agent took the contract in to the sellers agent they got into an argument because it seemed that they had lied about the sellers whereabouts and there being multiple offers on the home. Our agent then called our lawyer who then called theirs and it turned out that the seller had left the country and where not sure if he was coming back (had not left power of attorney etc). So now our agent got ahold of the negotiator from the bank and they stated that there had never been any offers on that property an for us to send them our contract and they would send an appraiser out. This seller owes money to two seperate banks. What can happen in this situation?

Help the community by answering this question:

Answers

7
Leslie,

I agree with Christopher. I am a real estate attorney here in the Chicago area, and if you were my client, I would want to discuss this with you as soon as possible. There is some confusing information above though. If this is a short sale, which would mean that it was pre-foreclosure and the bank does not own it yet, you are going to need the Seller's cooperation to make the closing happen, and it sounds like you arent going to be able to get that, so I would move on to another home.

You then reference the negotiator at the bank, which might make me think this is actually an REO, which means that it is after the foreclosure proceedings and the bank owns the property. If that is the case, then you have a legitimate shot at getting this home.

Good Luck!

Paul Garver
paul@hg-legal.com
2 votes Thank Flag Link Mon Feb 2, 2009
Leslie,

It sounds like you have a short sale on your hands, and without the Seller's cooperation, you will not be able to close on this house. Hopefully they come back in town and you can move forward on this house.

Good luck,

Paul Garver
paul@hg-legal.com
1 vote Thank Flag Link Tue Feb 3, 2009
Penny,

It always troubles me when people out of state answer these questions for the Chicago area. Here in Illinois and in particular the Chicago area, attorneys are used in almost ever real estate transaction. So it is not troubling at all. What is really troubling to me is this cropping up of "facilitators" around the country to help out with short sales. There are a number of legal issues surrounding the decision by a Seller to engage in a short sale that have long lasting implications. A "facilitator" should not be giving this advice because as you should know as a realtor that would be the unauthorized practice of law. Here in Illinois generally an attorney's office handles the short sales negotiations. We too have the contacts at the mortgage lenders, it is just that we can fully advise our clients on the full legal implications of engaging in a short sale. Too often I have just seen these "facilitators" set up shop to make money off of desperate people. Are there good "facilitators" out there? To be sure, but I think it is in the minority and when you are talking about the largest asset in a person's life, I would want someone who can fully advise me on the full implications of the transaction - an attorney.

Sincerely,

Paul Garver
paul@hg-legal.com
1 vote Thank Flag Link Tue Feb 3, 2009
The real question, as I see it, is, why would you choose to be involved in a situation like this when there are so many other houses on the market? -Inspector Mike Savage
0 votes Thank Flag Link Fri Feb 6, 2009
Mr. Garver, It is confusing because in the remarks for this listing it read "SHORT SALE (SOLD AS IS) NEGOTIATOR BANK APPROVAL NEEDED. So according to our lawyer the seller is no longer in the country. After my agent spoke with negotiator it seems that the bank had no clue that the seller had left and the sellers agent has never even turned in any offers. Im just a nervous wreck and have no idea what will happen next.

Leslie
0 votes Thank Flag Link Mon Feb 2, 2009
In Las Vegas we are seeing more and more short sales working and closing. I would highly recommend hiring a falicitator. The women my office uses has a direct contact with the proper people within the banks. It normally costs $500 upfront and $500 at closing. It is truly the method of getting short sales closed. Two loans should not make too much of a difference. I don't like to hear that lawyers were involved in this. The selling banks are on over load and many of them do not recieve the contract /offer because there are so many different people working in the departments that the contracts just don't get to the proper person...
0 votes Thank Flag Link Mon Feb 2, 2009
Dear Leslie,

Have you spoken with your real estate agent about this? They and your attorney really are the people that you should be speaking to. If you're not comfortable talking to your real estate agent about this, then I'd suggest asking to speak with their managing broker about it. Good luck to you.

Sincerely,
Christopher Thomas
Broker Associate, Sudler Sotheby's International Realty
773-418-0640 (cell)
christopher.thomas@sothebysrealty.com
http://www.mayagentchris.com
0 votes Thank Flag Link Mon Feb 2, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer