Home Buying in Oregon>Question Details

Dwredhatnana, Home Buyer in Bend, OR

Short sales: what are the rights of the buyer in Oregon?

Asked by Dwredhatnana, Bend, OR Tue Apr 17, 2012

We have been in a transaction that keeps being stalled. The lender is the same for the sellers two loans but cannot seem to get the dates that one is approved before the other one expires. We have had to lock in our mortgage rate twice and still don't have a date to close.

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You don't have any "rights" other than what the contract says that you have. Short sales can be very difficult to negotiate and it sounds like you need to have a conversation with your buyer agent about the process. You don't sound well prepared for how they work, or don't work as the case my sometimes be.
0 votes Thank Flag Link Tue Apr 17, 2012
I would make sure the two loans truly are with the same bank. The issue you describe usually only happens with different banks, or if the 2nd loan is a equity line of credit. The listing agent need to get a 30+ day approval from the 1st lender, then be very aggressive to get he 2nd to extend their approval to that date. As a buyer if both banks have approved the sale you should move forward with your loan, regardless if the dates line up for closing as long as you can close in time for the 1st lenders date. 2nd lien holders are much easier to get extension and I have had deals where it was a week or two before closing before the 2nd agreed to the extension. Yes there are risk to you as a buyer having to pay for Inspection and Appraisal Fees, but if you really want the house sometimes you have to take a risk. Getting the two banks to agree on a single date upfront is a much bigger risk. I would find out more about the loans though, because most banks who own the 1st and 2nd lien issue a combined approval letter that covers both loans.
0 votes Thank Flag Link Tue Apr 17, 2012
You have the right to walk away at any time. You would get your earnest money back as far as I know. I have had the same thing happen on a transaction in Medford area - it is not uncommon but the banks do take a lot of time to get the answers. As agents, we get just as frustrated and you do and the sellers. We can only push so hard. Hang in there if you can - you might get the best buy available!
0 votes Thank Flag Link Tue Apr 17, 2012
Short sales are subject to 3rd party approval, because of this, as a buyer you are "at the mercy" of the seller. Short sales tend to be long drawn out affairs because first the seller needs to be approved to even do a short sale and then the offer needs to be approved. If you really love the place hang in there, it can still close. If none of the terms have changed between the time of the expiration of the first approval, it shouldn't be too much of a problem to get approval again. Ask your Realtor what the contract states but as far as your "rights," it should say in your contract if you can back out or not if you are not pleased. Always check your contract! Hope this helps, best of luck.
0 votes Thank Flag Link Tue Apr 17, 2012
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