Personally, I would pull out of this deal as fast as you can. With no escrow you have no way of knowing if there are any liens on the MH. Additionally, how old is it? If it was built before June 15, 1976 it's a PRE HUD home and unless it's sitting in Paradise Cove in Malibu it's worthless. if you need some sound and experienced advice give me a call at 760 815-6977 or email me at firstname.lastname@example.org. Something smells here.... more
Hi Jen! I'm sure you've cancelled by now. However, I hope this answer helps either you or future sellers, buyers, etc... If u wish to cancel, of course, you know, you would need to have her draw up a cancellation of listing in writing. From your question, it did not sound like you were in escrow yet with any buyer. It is much easier to cancel at this point, than be under contract with a buyer. For if you do it, then..there could be serious repercussions or lawsuits, etc..
I am sorry you are stressed out. I know that most sellers have heard tons of bad things about short sales and have much misinformation. I know it sounds overwhelming and like lots of paperwork, but it is actually a very easy process. Once we take a short sale listing, unfortuneately...there are papers we must gather to get your short sale package together to submit to the bank. It is a one time process and you won't have to do it again. We need a hardship letter, a 3rd party auth form signed, 2 current bank statements, 2 years tax returns, and 2 current pay stubs or 4-6 months of P & L. A signed 4506T irs form. And usually we are good to go, as well as the signed listing agreement and a short sale information form. Keep in mind, your realtor cannot submit this to the bank UNTIL they have a buyer. So he or she was probably trying to obtain a buyer for you as fast as possible so your complete package could be submitted to the bank. No buyer, NO SHORT sale and NO bank will negotiate an approved price for you to walk away....Hope this helps!! Shy 310-429-4170 email@example.com www.shysells.com... more
In CA we have short sale addendum's that state any fees paid up front by the buyer will be their own responsibility. Each state has different verbiage. All short sales involve risks. There are some local companies here in CA that state they can "save" your short sale about to go to sale. I think the best way to save the deal is to have an experienced short sale agent working the deal, from the start. Most likely the bank isn't willing to remove the right to pursue judgment (& retains the right to come after forgiven debt). If the agent couldn't't get that negotiated off the approval... the seller may not feel as though there is any benefit to short sale. A foreclosure in most cases (CA here) wipes out the right to pursue the debt. Hope things work out!
CA DRE 01338444
The contract has to state a section 1 clearance is to be provided in order for the title company to know this and for you to be able to have grounds.
If you used the C.A.R. contract there is a box to check which states there is an addendum regarding the Section 1 Clearance included, and it has to be included.
If this was not checked then the lender most likely would not be looking for it and didn't require it as a condition of funding the loan.
If this box is checked, and the addendum was included then the lender would require it and the title officer would have had to provide it. The section 1 clearance comes directly from the Termite Company. If the fumigation wasn't done, was there an "alternative solution" recommended in the report and did they do that instead of a fumigation? Or was money held in escrow for a fumigation at a later date.
Your digging and reading all your documents should reveal who, if anyone is responsible, then you can direct your energies there. Your agent should have been following up on the details, regardless of them being a dual agent, yet they may not be at fault.
Get your agent involved if you haven't done so already,... more
Brokers should have a copy of the short sale addendum in all offers executed before a contract can be submitted to the lender. Although the lender does not request this item for short sale approval, the broker for their protection will require it. Therefore, unless the brokers will "assume" it will be a smooth transaction- they should show to their buyer that all offers can be cancelled at any time. This will help with issues such as the one above. Very likely the seller found another buyer for whatever reason, is going through BK, or is under the impression that they can get their loan modified which cannot occur at the same time as a short sale. Vi, your best bet is to have your agent look into this, you may find that they will come back to you and your offer.... more