Home Buying in 34668>Question Details

Rkm, Home Buyer in Port Richey, FL

We are currently under contract on a short sale. We were set to close last week, but there was a hold up with a signature needed by the seller. In

Asked by Rkm, Port Richey, FL Sat Oct 3, 2009

the meantime, the sellers lender "sold our file" to another lender! We are being told that our file went with others by mistake. We are also being told that the new lender has to approve our offer even though everything was already in place and we were set to close. Is this legal?????

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A contract is only set and l;egal once both parties sign, in thois case the seller has not signed the contract! Short Sales are tricky in the fact that there is stipulation that a third party has rule of the sale, yet this party does not have any responsibility in the sale of the property except to accept the offer amount! What you need to know is that the Third part can change as the process is moving forward. Therefore the new Third party can put requests upon the buyer that were not mentioned before. I think this should be changed as it is breach in the contract but the government has allowed it, You are at the mercy of the lender and don't be upset if the seller has had their fill of the whole thing and become reluctant to sign anymore papers. They get to lose their home and when all is said and done they may still get a 1099 forn for this tax year, which means they will be responsible for the income tax they owe as the 1099 says that the difference of the mortgage and the sale price has become income for the seller! Tough Cookies these Short Sales, and not always a great bargain for the buyer! Gerard Carney, Exit success Realty, 352-206-2371, A1FloridaRealtor@aol.com
1 vote Thank Flag Link Mon Jul 19, 2010
Unfortunately it is. I had this same thing happen on a short sale I had where I was working on behalf of the sellers. On my end the bank had two notes and sold the second in the middle of an approved short sale. It was nightmarish took 3 months longer than it should have but in the end it worked out. I can't make the promise for you that that will be the case in your situation but be prepared for another 3- 6 months, depending on the bank, just for an answer. Best of luck.
0 votes Thank Flag Link Sat Oct 9, 2010
Ahhh the pitfalls of short sales, just when you think you seen or heard it all, along comes another zinger like this. Probably why the major banks are going to halt ALL foreclosures for the forseeable future and Major title companies are refusing to issue clear title on some short sales. Why buy a short sale when there are lots of hassle free homes on the market that you can buy AND close on quickly? call me, text me or e mail me if you want additional details.
Kevin & Susan Horan
Horan Realty Group
727-992-5566 (Kevin-cell)
727-967-1756 (Susan-cell)
727-841-7984 (h)
727-375-7653 (o)
0 votes Thank Flag Link Sat Oct 9, 2010
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