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purelife9999, Home Buyer in Farmington Hills, MI

Short sale from August 2012

Asked by purelife9999, Farmington Hills, MI Mon Apr 8, 2013

We put down an offer for a short sale and the seller agrees and signs the contract. We even put $2.5K down as a deposit. But since then we have been waitting for almost 9 month and all we heard from my agent is "short sale takes time." I am thinking about backing out because the time frame. But my agent threatens not to give back my deposit. What can I do now? How can I find out what's taking such long time. ( The seller financed through BOA)

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Answers

15
Sarah Moore’s answer
Hmmm. Sounds to me like you are out of contract since the closing date has passed and you have not signed any other changes. I would consult a real estate attorney quickly to see if you are able to get your money back now that you are out of contract-it has expired at this point.
0 votes Thank Flag Link Mon Apr 15, 2013
I overall it looks as if you are binding. In a short sale first you negotiate with the seller and secondly with the bank. It seems as if the bank is now negotiating the agreement. From what you are saying it sounds that you have locked yourself in to purchasing the home before the BOA short sale approval. If so that means you will forfeit your deposit if you were to back out.

If you have the time please give me a call to discuss a bit further.

Tyler Willis, REALTOR®
Keller Williams Realty Intown Atlanta
621 North Ave NE, Suite C-50
Atlanta, GA 30308
Office: (404)541-3500
Direct: (678)656-5524
tylerwillisintown.kwrealty.com
0 votes Thank Flag Link Mon Apr 15, 2013
And my realtor's assisant told me a minute ago that if I do not sign the agreement which had #2 condition crossed out back to them by tomorrow. I will lose my depost because I give up this house, is that also right?
0 votes Thank Flag Link Mon Apr 15, 2013
Our closing date on the orgrinal contact is Oct. 2012. But my realtor said the binding should go with our counter offer agreement ( which has the terms above they are trying to crossed out ), in that agreement #3 says " all parties agree this is a short sale and is subject to Bank Of America approval." What I am trying to say is there is no offical closing date right now since it expires last Oct. And my realtor is saying I am still binding with them according the term #3 above. Is that true? Can I still get out with out lossing my deposit?
0 votes Thank Flag Link Mon Apr 15, 2013
It sounds as if you were poorly represented. If these facts are correct it sounds like you are stuck in your contract and if you are to back out you would loose your earnest money deposit.
0 votes Thank Flag Link Mon Apr 15, 2013
I haven't sign the contract yet, should I sign it or not?
Flag Mon Apr 15, 2013
on my contact under terms and conditions #2 says "due diligence do be 7 days and to begain at time binding agreement date." The binding date is last August. Does that mean I am stuck with this contact until the end? Also I have just receive the contract back from my agents half hour ago clams the negotiator at Bank of America crossed out the diligence date (terms and conditions #2) from the contract, they want me to sign and send back with in today by 5PM. Should I sign it? Why would the negotiator crossed out this condition?
0 votes Thank Flag Link Mon Apr 15, 2013
HELLO,

CONTACT YOUR REALTOR BROKER TO TERMINATE CONTRACT & ASK FOR FUNDS TO BE RETURNED!

STAY AWAY FROM SHORT SALES, AS MANY BANKS ARE HOLDING OUT TO GET FAIR MARKET VALUE NOW..THERE ARE NO STEALS IN A SHORT SALE...THE MARKET IS HOT & BIDDING WARS ARE ONGOING.....
0 votes Thank Flag Link Tue Apr 9, 2013
One of the last short sales I was involved in with BOA took 1 year and a month to get an approval.
I just say that to show you that short sales is really a time consuming process- tho I have had some short sales that has closed within a month or so. Each case is different.

Now about your agent- he or she is supposed to be on your side. Have you discussed your concern with your agent? (im sure you have.......) Consider speaking with their Broker like Dave mentioned. Read the terms of your contract thoroughly as it should state your options and rights of the earnest money and terminating the contract. I am aware there is a chance you may not understand all the contract "jargon", so again take it to the agent's broker or your attorney to review and explain it to you.

I completely understand your frustration and best with getting this issue resolved...

Laquita Baez
Licensed Realtor in GA and NJ
Better Homes and Gardens Real Estate Metro Brokers
770.901.0956
http://www.LaquitaBaez.com
0 votes Thank Flag Link Tue Apr 9, 2013
Dear Short Sale from August 2012,

Real estate agents cannot give legal advice, and that is exacty what you may need. I can give other advice though.
1. Read up on the short sale process and the steps involved. The Trulia forms have a wealth of information on this topic, or let Google do the searching.
2. Read your contract, it should tell you what your rights (and responsibilities) are.
3. Armed with information, ask your agent to explain exactly where in the process you offer is.
4. If your agent is actually the listing agent, seek out a short sale consultant or Realtor who specializes in short sale to represent you.
5. If you cannot get satisfaction from your agent, take your complaint to their managing broker, and if no satisfaction there, file a complaint with the state board that governs real estate agents.
6. Still not happy, get an attorney.

Best,

Dave Herren
Best Atlanta Properties
404-425-4945
0 votes Thank Flag Link Tue Apr 9, 2013
You would need to discuss the details of your sales contract with your Buyer's Agent. Short sales often take severla months for the Seller's lender's approval.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Mon Apr 8, 2013
I realize that real estate is handled differently in various parts of the country but your statement “… my agent threatens not to give back my deposit.” raises a red flag for me. In what state is real estate practiced in such a manner that the agent is the enemy of the client? Why is your agent in control of your deposit? Is it not held in an impartial, 3rd party escrow?

If you are using the seller’s agent, you already know that you have made a mistake by not having someone truly on your side.
0 votes Thank Flag Link Mon Apr 8, 2013
It is not unusual for a short sale to take a long time. Especially with Bank of America. What you may find is in the end, they reject your offer, ask you to pay a great deal more, refuse to pay HOA dues or prorate taxes even if they agreed to that in the contract. The bottom line is the seller cannot perform, have your REALTOR, hopefully not the listing agent review the contract. It would be surprising if you were unable to terminate and receive a refund of your earnest money. If that is the case, you were very poorly represented, consider suing the agent. An attorney should be able to get a refund.

Bruce Ailion,
RE/MAX Greater Atlanta
An Atlanta Real Estate Expert Serving Clients Since 1979
CRS, CRB, ABR, MSRE, CDPE, e-PRO, ESQ
Certified Residential Specialist
Certified Real Estate Broker
Accredited Buyers Agent
MS Real Estate and Urban Affairs
Certified Distressed Property Expert
Certified Investment Agent Specialist
203K Certified Specialist
Attorney
2050 Roswell Road
Marietta GA 30062
404-978-2281 Direct
404-386-3682 Assistant Robin
678-760-6266 Buyer’s Agent Adam
770-973-9700 Office
bruce@locationlocationlocation.com
http://www.LocationLocationLocation.com
0 votes Thank Flag Link Mon Apr 8, 2013
I agree with Tyler. You need to look at the contract everyone signed and see what it says about the due diligence period and time frames. Does your due diligence start after short sale approval or did it start at binding agreement date? Your agent should be able to advise on this (and hopefully you have your own agent working in your corner with your best interests in mind).

Good luck!
0 votes Thank Flag Link Mon Apr 8, 2013
my diligence do be 7 days and begain at binding agreement date. And the binding date is last August. Does that mean I am stuck with this contact until the end? Also I have just receive the contract back from my agents half hour ago clams the negotiator at Bank of America crossed out the diligence date from the contract and want me to sign and send back with in today by 5PM. Should I sign it?
Flag Mon Apr 15, 2013
Speak with your agent and see if you have any clauses within the agreement to back out without loosing earnest money.

Also is your agent actually your agent or did you use the listing agent working for the seller?

Tyler Willis, REALTOR®
Keller Williams Realty Intown Atlanta
621 North Ave NE, Suite C-50
Atlanta, GA 30308
Office: (404)541-3500
Direct: (678)656-5524
tylerwillisintown.kwrealty.com
0 votes Thank Flag Link Mon Apr 8, 2013
What is the Listing Broker telling your representative, purelife9999? Would guess there has been some level of communication from BOA. Please call, text or email if we can provide further assistance. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com

http://www.SellsRealty.org

http://www.city-data.com/

http://www.greatschools.org/
0 votes Thank Flag Link Mon Apr 8, 2013
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