Home Buying in Phoenix>Question Details

Olga Pinney,  in Bountiful, UT

The seller and the bank accepted my offer now the bank accepted her loan modification,can I forced the contract, I already spend money on a appraisal

Asked by Olga Pinney, Bountiful, UT Wed Apr 23, 2014

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Hi Olga,

I can certainly understand your frustration with this situation. Please realize that the parties employed by the bank are most likely frustrated as well, I know this from experience. It's a challenge for the "process" of things to go as smoothly as anticipated. In large companies, there is a high turnover rate. Many employees are in and out in a matter of months. When a loan is in default, it goes through several departments; typically, it's Loss Mitigation first. If the bank and homeowner cannot work something out, it's passed to another department to see if they have a solution. I guess what I'm trying to say is the person who initially denied or wouldn't work with the homeowner may have quit in the middle of the file review or passed the buck, so when another person reviewed the file, they may have found a solution.
Unbeknownst to the new loss mitigation rep, as they were not informed by the homeowner of the short sale in process, they probably began the modification process

I know, I know, you would think all notes would be in the system or red flag would appear or banks would have a flashing neon light for the loans that are in process for something but to be honest, many departments don't even work in the same systems, let alone are able to read each other's notes.

Please contact a real estate attorney for assistance.


Lisa Markham
Envoy Mortgage, Ltd.
NMLS# 947738 / AZ# 0921717
(O) 520.612.0480
1 vote Thank Flag Link Mon May 5, 2014
You'd have to read the contract and see what the exact terms are, and if there is an "out" in the event this kind of situation came up.

Since it's a legal question, I'd advise you to ask an attorney, but............my personal opinion is no, you can't "force the contract"............if this is a short sale, which I assume it is, the bank has final say on everything.......it's never "over till it's over" when dealing with a short sale.

It's unfortunate the bank didn't accept the loan modification before putting everyone through this!

The only good news is (although not so much for you) is that a homeowner gets to keep their home.
1 vote Thank Flag Link Wed Apr 23, 2014
Speak to your Realtor and to an attorney. The answer is in the contract that was signed between you, the sellers and the bank.
0 votes Thank Flag Link Mon Jun 30, 2014
You need to seek the advice of your Realtor and his or her broker. If you signed a short sale addendum, then you must re-read what you signed. There are a lot of documents you sign when buying a short sale, make sure your Realtor goes through them with you.
0 votes Thank Flag Link Mon Jun 30, 2014
You should discuss this with your Reatlor since he/she will know all the details of the circumstances.
0 votes Thank Flag Link Tue Jun 3, 2014
It all depends on the agreement that the bank representative sent you. On traditional transactions you could sue for specific performance. I would contact a Real Estate Attorney after you read the entire contract and any additional documents you signed.
0 votes Thank Flag Link Mon May 5, 2014
Most likely not. Best advice is to speak with a real estate attorney and the broker representing you in the case. As Debbie has mentioned, it's very unfortunate for you, but great news for the homeowner.

Best regards,

James Wehner
0 votes Thank Flag Link Thu May 1, 2014
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