Home Selling in 60714>Question Details

Phoebe Co, Real Estate Pro in Glenview, IL

What if sellers have no money to bring to closing?

Asked by Phoebe Co, Glenview, IL Wed Apr 20, 2011

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If the sellers can neither bring money to closing nor borrow to cover a deficit, then this is by definition a "short sale" and the bank must be brought into the deal and agree to allow the sale to go forward. The sellers will have to prove to the bank that they cannot continue to make the payments.

Best,
Ron
1 vote Thank Flag Link Wed Apr 20, 2011
The seller will have to either come up with the money (beg/borrow/steal), the agent/attorney/title company will have to cut fees, or the the seller will have to work it out with the bank (short sale/payment arrangement/cross-collateral). The seller needs a plan before moving forward. Good luck.

The information in this answer is general information and is not intended as legal advice, nor do I intend to create an attorney-client relationship with any reader by answering this question or otherwise contributing as a member of Trulia.com.
0 votes Thank Flag Link Wed Apr 20, 2011
Are they not getting anything from the sale? If that is the case, and this is not a short sale situation, perhaps the bank would allow them an interest only unsecured note if it is a small amount.

I would say you need to work something out with their bank or they will not be able to close. Or maybe you can get the buyer to pay a little more so it will close. Not likely, but you just never know.

Unfortunately, no deal is clean these days. There are always circumstances that cause us to be creative. But it will make us better Realtors in the end.
0 votes Thank Flag Link Wed Apr 20, 2011
It seems this may be a short sale situation. This problem should have been addressed when the proposed HUD was drawn up by the listing and submitted with the short sale paperwork. If you are just before closing and this is just being realized, soemone was asleep at tee switch, now a couple of things has to happen, the selling agent and listing agent and perhaps the buyer can all split the cost if it is on the lower end to make this sale work, if it is on the higher end, you need to go back and renegotiate the short sale with teh bank to absorb this amount or your sale is dead in teh water.

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http://www.trulia.com/blog/scott_godzyk/2010/06/how_to_get_a…


For a complete list of tips and advice getting a short sale to close
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Apr 20, 2011
I hope you did not find out at the last minute.Are you the listing agent? Good luck with it.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Wed Apr 20, 2011
Hi, The property will not be able to close unless the bank forgives the remaining debt or it is paid off. This isn't something that just pops up at the closing table, it's worked out well before the closing. In fact once you list with an agent you will get an idea of what you will owe or receive. If the home is a shortsale this needs to be approved by your lien holder well in advance. Your best bet is to contact whoever holds your lien and talk to them about your options. They are the ones that can help you best.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Wed Apr 20, 2011
Then the sellers can do a short sale. We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Wed Apr 20, 2011
Then it's not going to close until other arrangements can be made.
This should have been known prior to closing..... if the property was listed, the seller should have received an estimate of net proceeds from the agent and the owners should have received a copy of the HUD-1 prior to the closing date.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Wed Apr 20, 2011
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