Home Buying in Las Vegas>Question Details

Tim, Home Buyer in Corpus Christi, TX

Why is this short sale seller stalling?

Asked by Tim, Corpus Christi, TX Sat Nov 20, 2010

I posted earlier regarding short sale offer I made above the recently approved (good for 30 days from bank) asking price and accepted all terms that the bank had set. I made the offer a little over a week ago, and the seller is supposedly out of the country, but has promised a verbal decision on three separate occasions but still no decision. Why is this seller stalling? The seller obviously can make phone contact since I have been promised verbal notification on three separate occassions (come and gone). The banks approval is only good for two weeks more, and if it expires the whole thing must go back to square one. My offer is cash, and have given evidence of funds. The house has been on the market for over a year; I would think the seller would jump at a cash offer at the amount currently approved by the bank (there is only one other offer). At some point, I imagine the bank will simply forclose on the property if it does not short sale. What am I missing?

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This is pretty typical with short sales. If there is an approval on the table the seller could be having a tough time making decisions with the terms and conditions that he must comply with?

Are there agents involved in this transaction?
1 vote Thank Flag Link Sat Nov 20, 2010
maybe the seller is hoping to get more offers
0 votes Thank Flag Link Mon Nov 22, 2010
Your buyers agent should be on this for you. He/She could contact here broker to complain about the selling agent which should get things going. I find most of these problems are due to the sellers agent not the sellers. Keep pushing.
0 votes Thank Flag Link Mon Nov 22, 2010
The owner may be stalling because they do not want to sell. They may be getting bad advice from someone who has told them that they can "get their house fore free" if it was robo signed or they may just want to stay for the free rent if they have stopped paying the bank. You can send a letter to the lender's representative directly and state that you are ready to perform on the contract, but that you will not allow the house owner to stall beyond the approved date. That may put pressure on the owner to make their decision. If not, you are better off walking away.
0 votes Thank Flag Link Sun Nov 21, 2010
With the recent banks robo-signing fraud and the suspension of foreclosure proceedings, your short sale owner frigures he has another year of living in his house with no mortgage payment. I don't think it's more complicated than that.
0 votes Thank Flag Link Sun Nov 21, 2010
Another possibility is that the lien holder didn't release the seller from future liability of the remaining balance on the loan. in Nevada, if the 1st lien holder forecloses they only have a total of 6 MONTHS to initiate litigation against the owner. If the HO does a short sale the 1st lien holder has 6 YEARS to seek recovery via the courts. If you are the HO, it is often better to allow the home to go to 4closure if the 1st lienholder doesn't provide a full release to the HO. The HO could be 1st out of town and wanting to talk with an attorney which requires an appointment. Another possibility is that the HO and spouse could be having "communication" problems. They BOTH must be in agreement of the process from beginning to end. They both need to sign the bank agreement at the beginning and also at the end at title. If either change their minds-the process does not end in the way the buyer would want it to.

IDK....but there are many possibilities but if the HO is planning to do a Short Sale they should have signed immediately to approve.

Valerie Edwards, REALTOR
Premier Real Estate
(702) 371-5533
0 votes Thank Flag Link Sat Nov 20, 2010
Hello Tim....
Yes sometimes a bank may give the approval of the shortsale......but not release the deficiency with the approval.
Although a seller really does want to sell, a term stipulating no release of a deficiency may change a seller's mind.

Should you or your friends/family have any Las Vegas real estate needs or questions, please feel free to contact me at anytime....
Thanks and have a great day!

Julia St. Marie, ABR, RRG, RSPS
Realty ONE Group
Certified REO Specialist
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0 votes Thank Flag Link Sat Nov 20, 2010
The seller should jump at it. Usually in a short sale, the seller really doesn't care and they will sign off on anything just to get the process started. My feeling is that the seller is in the process of consulting with an attorney. He likely may have just found out that the bank holding mortgage #2 can come after the seller for 7 years and then the debt can be resold ad infinitum to other credit collection companies who can harrass the seller for the rest of his life with liens, collections and judgments. The seller may be pondering if he should even be selling short. He might learn that he is better with a foreclosure.
0 votes Thank Flag Link Sat Nov 20, 2010
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