Home Selling in 94806>Question Details

Glenn, Home Seller in San Pablo, CA

I am short selling my home we are on the final stages, Bank Approved the sale already. We cant come to terms.

Asked by Glenn, San Pablo, CA Fri Oct 24, 2008

I was asking for a week extension from the banks designated closing date. So I can secure my new home. I am legally binded what happens if I cancel the sale? San Pablo California

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Answers

3
Some times the banks will allow for an extension if you have already exhausted your first three allowable 30 days extensions. If you have not used any of your three allowable extensions, you are in the clear to request a postponement especially if you have an approval on a buyer. If you have used your allowed extensions, then the banks can grant an extension pursuant to investor approval on a per diem basis. But you need to request this extension no later than 3-5 days before the trustee's sale date.

I hope I helped !! Good luck.

Diane Wheatley, Broker
diane @moveupproperties.com
1 vote Thank Flag Link Fri Oct 24, 2008
You have a couple of points to contend with. Your lender, if I understand this correctly, approved the short sale and there may be some terms you're not agreeable to with that. If these terms are something that affect the way you understood how the sale you submitted would work, there may be reason for you to "change your mind". The reality is that a short sale is a sale to another party, a buyer, under some specific terms, e.g., "subject to a final approval of a short payoff with the seller's lien holder(s)..," or something similar. If the approval of the short sale by your lender are less than favorable, sometimes the lenders don't always do things favoring the homeowner, such as when they want to obligate the homeowner to cover the loss or they want to transfer the loss to another asset, if the homeowner has other properties with equity, etc., at this point the seller has to evaluate if this is what they understood when the sale was entered into with the present buyer. If they were not, and the sale is contingent upon that short sale approval, then there may be grounds to rescind. However, be careful on taking any steps to change the way you thought the contract was spelled out initially. Check the terms of the "ratified" purchase agreement with the buyer, and what you and your agent understood about the short pay-off. If in doubt, you may want to evaluate this situation with an attorney, but be sure to bring all your paperwork to see whether or not you and your agent properly addressed these issues before canceling a contract or "changing" your mind.
0 votes Thank Flag Link Mon Dec 6, 2010
Glenn:

If I am not getting anywhere with the Short Sale Lender, sometimes I find that having my escrow / title officer request the extension for delayed closing works the best. It is clean and unemotional. I have yet to see a bank deny a few extra days to close. They really don't want to own your home. As an alternative, negotiate a one week lease back from the new buyer. They might be open to this. You will never know if you do not ask.

Regarding your legal obligations under the contract, this is a question for your agent, their broker and / or an attorney. Anyone who would comment on that without knowing all the fact would not be doing you a favor. Hope everything goes smoothly for you and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Fri Oct 24, 2008
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