Best of Luck
Realtor / E-Pro / CMIS / BMA / CMMS
Relocation Specialist / Seniors Real Estate Specialist
"Thank you for thinking of me when referring your family, friends and business associates. It is greatly appreciated"
Prudential California Realty, Sherman Oaks
818-380-2138 (direct / voicemail) 818-515-8936 (cell)
It can be presented to the 1st lien holder in a light that shows them it is in their best interests to get this to go through because it will cost them a LOT more money to let the home go to auction. It's all in how this situation is presented to the 1st lien holder.
Don't give up on this one until you at least have a sit down with all parties.
Short sales have no guarantees even when the seller is cooperating. I personally would move on because if seller is putting up road blocks the bank may just not want to deal with it and foreclose anyway. It is so hard when you have waited so long but it could end up busted anyway.
The one thing I will say is the longer the sale gets dragged out, sometimes the less the seller cooperates. Have a talk with your Realtor and their Realtor and discuss what everyones input is. That might help you understand what you best choice is moving forward. It is difficult to enforce short sales.
I think at this point you might want to move on and perhaps wait until the property becomes an REO (bank owned). A short sale is a difficult process for both buyer's and sellers. With another lien on the property possibly it is going to be difficult to get it approved. You have waited to long. I don't think you have any recourse but I don't know the specifics of your contract, so check with your agent and start looking for another home is my recomendation.
The Carrabba Group
Keller Williams Hollywood Hills
Also, the borrower gets a minimum of 111 days to cure the debt and if he is having second thoughts about completing the short sale for what ever reason then there is not much you can do.
This is one of the difficult things about a short sale. Not every homeowner gets their short sale approved either. Home owners wishing to do a short sale must cooperate fully with the bank and sometimes the bank can ask for "seller contribution", funds. If the seller/borrower does not want to cooperate with the bank then the bank will foreclose.
A seller can live for free in their home as a foreclosure progresses, and even stall a foreclosure by filing bankruptcy. This may seem like a more viable solution to a seller who has not suffered real hardship, but who has no equity in the property. (please see my answer here: http://www.trulia.com/voices/Foreclosure/how_long_does_it_ta )
The lender will not complete a short sale without hardship.
If this seller will not participate willingly, thoroughly, and rapidly, please rescind your offer and move on.
Best of luck,
Certified Short Sale Professional
Certified Home Retention Specialist
Blogging at: http://TheBremnerGroup.com/blog
I would suggest approaching this transaction from the seller's point of view. In many cases there are limits to what the lender(s) may be willing to do. As it is they are taking a big hit in writing off a big junk of the loan, plus are paying closing costs. They reach a point where they simply say "we are not going to do anything further".
So, seller wants to sell because his alternative is foreclosure. Where is the middle ground here?
My suggested strategy:
1. Determine the fair market value (FMV) of the property. How much are you willing to pay?
2. If the the FMV is more than the negotiated sale price, now you have to get creative. Ask for a meeting with the seller and their agent. Ask them what it will take to move this transaction forward.
3. Example - there is a lien against the property for $20,000 and the lender will not pay off the lien. At that point, you need to decide if you want that property. Can YOU pay the lien...or negotiate to pay part of it.
If the lender forecloses the lien holder gets nothing.. Zip. ZERO, NADA! It is normal for lien holders to be paid a percentage of their lien...like 10%, 20%, etc. See what you can negotiate.
The best question for Realtors to be asking during a transaction is this " What can we do to move this transaction forward?"
Sorry you are having such a hard time. There is not much you can do to enforce a sale if the seller will not allow the transaction to finalize, the bank will likely foreclose on that property. Do yourself a favor, and start looking at another home.
In this case Iâ€™m afraid this sale is probably going no where fast. So itâ€™s probably time to move on to another property.
These contingencies in a short sale do exist in order to protect both the sellers and buyers involved in such transactions. Just imagine if you were in the sellerâ€™s position, unable to keep your home and forced to sell due to financial hardship. And in order to avoid a costly foreclosure on your record you decided to sell the property even though you owe more against the property than what a buyer was willing to pay for it.
Then after coping with all the unpleasantryâ€™s of selling your home (in which you were not going to receive any of the proceeds of sale), open houses and strangers constantly coming through your home, you found out that in order to be free of your mortgage debt your lender was forcing you to carry a personal note in which you must make monthly payments over the next 5 to 10 years on a home you no longer own.
This wouldnâ€™t sound like the ideal situation to me personally, but then again, depending on the type of mortgage and property being sold, it may just be better than the repercussions from a foreclosure. Hopefully the seller is receiving both legal and tax advice before they make their final decision to cancel the sale.
And, by the way, these same contingencies are also protecting the buyers of short sales. If the seller is never able to gain short sale approval but the buyer makes his/her earnest money deposit into escrow, then the buyerâ€™s deposit could possibly be tied up for an indefinite time frame (while the seller attempts to gain short sale approval) until both the buyer and seller agree to mutually cancel the contract.