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Jim, Other/Just Looking in South Broad Street,...

I picked an buyers agent and attorney for a short sale and still feel nervous.

Asked by Jim, South Broad Street, Newark, NJ Sat Feb 28, 2009

We are not getting any relevant info or good advice from either agent or attorney. Have no kickout clause that I can see, other than closing date.Have not seen copy of package to sellers bank. Listing agent has not updated MLS to show pending, and over a month since end of attorney review. House on market for 18 mo., lis pendens filed 12 mo. ago. Need options and solid legal advice. Thank you.

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Jim.

Legal advice is not something we can provide here on Trulia or even as knowledgeable Realtors. For liability reasons, only an attorney can provide same.

Having said that, a buyers agent is limited as to the "personal" info of the seller and in my experience the buyer's agent and the buyer are not entitled to view the "package" that the seller submitted to the bank . . . it just a waiting game.

The fact that the property does not show pending is a constant point of contention for me as a Realtor as there are those who feel that "pending" status is inappropriate and not required and those that feel that "pending" status is required . . . I can't wait until someone of authority straightens this out! What I can tell you is that most banks will only entertain one offer at a time, so, therefore, if YOUR offer is "at the bank" you take precdence and the most banks will not entertain other offers until/unless this offered is deemed invalid.

With regard to the commentary of 18 months on the market . . . in this market many homes are "on the market" for 12 months plus so this point is irrelevant.

As for the lis pendens status, this could be a point of worry, but in today's economic environment witth the volume of foreclosures, this could or could not be a cause for concern. I've had deals be interrupted with consequent foreclosure proceedings and others that closdd before it ever made it to foreclosure. Again, it's all a waiting game and a proposition filled with inhereent risk.

Sincerely,
Francesca Patrizio, ePro, SRES
732.606.2931 (DIRECT/CELL)
Francesca@PatrizioRE.com
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Thu Jun 3, 2010
When was the contract submitted to the bank. If you're talking about the package from your realtor and attorney to the bank, all that is is a contract signed by you and the sellers, a preliminary HUD 1, and proof of funds or your pre qual. As already stated, the MLS can't be updated until the bank accepts your offer.

Perhaps you should have your agent speak to the listing agent and clarify a few things:
WAS THE NECESSARY PAPERWORK SUBMITTED TO THE BANK ON THE SELLERS BEHALF, SO THE BANK CAN EVALUATE THE HARDSHIP?
HOW MANY MORTGAGES ARE THERE ON THE PROPERTY AND HAVE ALL THE BANKS BEEN NOTIFIED?
IS THIS THE FIRST CONTRACT SUBMITTED ON THIS SHORT SALE?
WAS YOUR OFFER SUBMITTED WITH A PRELIMINARY HUD 1, AND ON WHAT DATE?
HAS A NEGOTIATOR OR LOAN MODIFICATION SPECIALIST BEEN ASSISGNED?

You don't say how long it's been since you submitted the contract, nor do you state the projected closing date.

If this is the first contract that's made it to the bank, it might take a while.

Good Luck, but make sure your agent keeps on top of this.
0 votes Thank Flag Link Sat Feb 28, 2009
Jim,

Unfortunately a realtor cannot provide you with solid legal advice. Your attorney should be providing you with that but in any event, I understand that you concluded attorney review. Attorney review I'm assuming started once you and the seller signed off on the contract but at any point has the bank signed off on the contract? If they haven't, have you already concluded inspections, mortgage application, appraisal, etc? If so, were you advised from the beginning by either agent/attorney that you would expend these fees (if you have) BEFORE ever hearing back from the bank? That's what my experience has been with short sales...The buyers are expected to proceed as if they have a signed contract and in fact you do, but if the bank did not sign off on it -- unfortunately, you have nothing but less money in your pocket because you expended monies on a house not yet approved by the bank.

Now the reason why its not updated in the mls is most likely because the bank has not approved the contract. The banks take a long time to begin with and also wait for other offers to come in too. Do you know the status of the foreclosure proceedings besides the lis pendens being filed? The homeowners were served with foreclosure papers and unless someone stops the clock...the clock can and very well may be ticking. Once its up for sheriff's sale, it makes it that much harder to actually proceed in buying the home. Have your attorney find out the status of the foreclosure. If the bank hasn't approved a short sale, the clock is most likely running. In addition with the recent Stimulus Plan, from what I heard, Short Sale Departments of lenders are being frozen at this time and if a seller can financially stay in their home, they will choose to do just that under the plan. I may dissuade my buyers at this point from proceeding on short sales. You can be wasting an opportunity to get a low interest rate on a home that is free from encumbrances.

Again, this is not legal advice and you should speak to your attorney immediately about your options.

Good luck.

Gina Chirico, Sales Associate
Prudential NJ Properties
973-715-1158 cell
Gina.Chirico@PrudentialNewJersey.com
0 votes Thank Flag Link Sat Feb 28, 2009
Hi Jim, Jeanne back - I would agree with Lynn's advise to keep looking - the uncertainty of short sales should motivate you to continue your search. If you do find something else, be sure to terminate your short sale offer (or any other for that matter) in writing.

Best,
Jeanne Feenick
Search and connect at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sat Feb 28, 2009
Hi Jim, working with an attorney that has experience with short sales is most important. It will be helpful that your Buyer's Agent has same. Fact is, you are experiencing what is quite common with short sales - delays, uncertainty and lost time. Call your attorney and ask him/her to explain process and status. It can be frustrating - waiting, waiting, and then when the bank is ready, you are often pressed to close in short order.

Good luck!
Jeanne Feenick
Search and connect at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sat Feb 28, 2009
If you dont have an executed contract listing agent cant update MLS as pending. That status is reserved AFTER both parties have signed and agreed terms of contract.

Did you submit a sales offer, supported by your lender approval? Those documents are sent to bank for review.

One month later waiting for response from bank I would assume they may not prefer your offer waiting for other offers. I woudl recommend for your agent confer with listing agent determine status, if no response keep moving on.

We educate your buyers although we have submitted a sales offer on either a foreclosure or short sale, without a response within 5 working days we need to keep searching.

Dallas Realtor and Consultant, Mortgage Loan Officer, Lecturer regarding Credit Repair
– Lynn A. Crosby
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Feb 28, 2009
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