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Shortsalepai…, Home Buyer in Berkeley Hills, Berk...

I put an offer in for a short sale, the bank approved it, and now after 90 days the sellers brother is making crazy demands. What are my rights?

Asked by Shortsalepain123, Berkeley Hills, Berkeley, CA Sun Sep 4, 2011

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Thx u everyone for all the responses. My broker says on 27 years of experience this is a 1st for him. I have some thinking to do. Thx u again and happy Labor Day!
1 vote Thank Flag Link Mon Sep 5, 2011
John is right on... People in Short Sales often get addicted to not paying mortgage/rent. The fact that they have gotten a way out of a bad situation, the bank has agreed to lost tens or hundreds of thousands of dollars and now they are " making crazy demands " is ludicrous. Give the crazy seller two options: You close with the house vacant and clean and rekeyed ...OR you walk and the property goes to foreclosure. They will likely choose option #2.
1 vote Thank Flag Link Mon Sep 5, 2011
Sounds to me like you had a decent lady trying to get out of a bad financial situation attempting to do things right and then the greedy brother shows up and tells her that...you can stop paying your rent and stay put for several months to several years before the bank evicts you, don't be fool don't sell, just stay here and live rent free.

If that is the kind of situation....you can work the deal until the day of closing to then realize they are refuing to move out....how many waisted months of yours will that be, to then have to walk away and start the process somewhere else.

Walk away now. Find yourself a vacant short-sale or better yet a foreclosure and be done in 30 days.

Tony Vega
Chareles Rutenberg realty
1 vote Thank Flag Link Mon Sep 5, 2011
YOU should not close until after they are off the property. You should realize, often they will trash the property, causing all sorts of damage, taking some to all fixtures, cabinets, you know everything that isn't nailed down, and some that are. You should have a very detailed inspection of the property to assure it's condition before closing but after they are out and locks changed. You are a long way
form closing, and my best guess, given what you have said, is you have about a one in 10 chance to close on this property. While you have rights, as others before me have said, those rights and $5 bucks will get you a cup of starbucks as the owners are more than likely judgment proof.
Welcome to the world of short sales. I hope you have an Attorney and a Realtor, if not you at least need a good REAL ESTATE ATTORNEY _RIGHT NOW!!!!! There are many other issues to be concerned about that may not even be on your radar scope.
Wish you the best of luck.

John
352-978-4539
1 vote Thank Flag Link Mon Sep 5, 2011
Shortsale, Your rights are in the purchase and sale agreement. The brother has no say after the fact. I hope you used a Realtor that has training in short sales. The bank accepted your offer, so the closing will take place. If the sellers try to change something, they will be in default. You might have to take legal action to make them perform. Good luck, give me a call or email me with any questions 904-962-8089 dprice@agentlink.net As a State Certified Residential Real Esate Appraiser and a REMAX Realtor, I know the local market.
Don Price USN-RET
SFR, CDPE
REMAX Specialists
0 votes Thank Flag Link Mon Sep 5, 2011
If you have an agent, you need to speak with them. If you have an attorney, the attorney will be your second person to speak with. Most desperate sellers believe they can make any demands they want, they are desperate, and they just want money to get on with their lives. And when a bank takes many months to close a deal, they get frustrated and since they cannot talk to the bank, they complain to the agents and the buyer. Just talk to your agent and attorney and let them guide you. Do not speak to the seller or seller's brother; have them communicate through your agent or attorney.
0 votes Thank Flag Link Mon Sep 5, 2011
is the brother on the deed? if not he has not say in the matter
David
0 votes Thank Flag Link Mon Sep 5, 2011
http://www.fbi.gov/newhaven/press-releases/2011/real-estate-…

Agents are going to jail if they get involved with Short Sale fraud... take a look at the above..
0 votes Thank Flag Link Mon Sep 5, 2011
"If the Seller is NOT going under HAFA and it is an owner occupied property, you may want to inquire as to why. Some fraudulent flippers will not even inform an owner they can get $3k under the HAFA program because it will prevent the "flippers" from reselling the property immediately. "

First, investors who flip properties--unlike listing agents/brokers--have no fiduciary responsibility to the seller. Although some investors (myself included) often will present this (and other) information to sellers, the responsibility to distribute of that kind of information rightfully belongs to the seller's agent/broker or attorney. The seller has a right to forgo any representation (usually at his/her/their peril), and that seller will need to deal with the consequences of having done so.

Second, the HAFA program won't prevent a determined investor from reselling the property immediately. One has several legal options (exploiting various loopholes [and there are plenty of them]) at one's disposal to move that property immediately.

Third, John is correct. Most likely, you'd be spinning your wheels if you were to try to pursue any kind of legal action against the seller. In other words, you'd lose (money, time, energy, etc) even if you were to win your lawsuit. I agree with Mikel too: give the seller those 2 options. In fact, I'd probably tell the seller to congratulate her brother for having purchased her home to subtly drive home my point: his terms only if it's his property or my terms if I'm buying it--period.
0 votes Thank Flag Link Mon Sep 5, 2011
There maybe a good deal of difference between "Your Rights" and What you might recover from on same.

You should ask your self, "Just how much Justice you can afford". Reread the good answers of Alma, Mikel, Tony and Dan.

John
0 votes Thank Flag Link Mon Sep 5, 2011
All your rights are in the contract. You made an offer to purchase and it was accepted. Too late now for the brother to demand anything. Read your contract and speak with your real estate attorney. Happy Labor Day. :-)
0 votes Thank Flag Link Mon Sep 5, 2011
Oh and as far as "legally" compelling them to do the right thing.... good luck with that because the seller is probably financially insolvent so who are you going to collect even your legal fees from? Unless the Seller shows up at the closing table and signs, you have no deal.
0 votes Thank Flag Link Mon Sep 5, 2011
Welcome to the world of Short Sales!

This may only be the beginning of the demands. Also plan on all of the appliances, light fixtures, window treatments, etc. to be taken out of the house.

If the seller is getting a HAFA Short Sale (owner occupied properties can often qualify for this), then he will be getting $3,000 at closing.

Also unless you are getting a spectacular bargain, you may want to go find another property to buy. Eliminate all short sales from your search so you don't jump from a frying pan into a fire.

You can also play the "nicey nicey" route and tell them your mortgage requires you to occupy immediately. Most mortgages being purchased as a primary residence requires you to move in with 30 days. You cannot lease out the until.

If the Seller is NOT going under HAFA and it is an owner occupied property, you may want to inquire as to why. Some fraudulent flippers will not even inform an owner they can get $3k under the HAFA program because it will prevent the "flippers" from reselling the property immediately.

Hope this helps.

All the best,
Alma
http://www.SoldOnTampa.com
0 votes Thank Flag Link Mon Sep 5, 2011
Is the sellers brother a party to the contract? If not, he has no say. Only parties to the contract are involved in the sale. I will also assume that the sellers brother is not on the mortgage and that the bank has no obligation to him either.

You and your seller must abide by the terms of the contract or look at the contract for remedies of breech of contract. Talk to your agent OR to the broker of the company.

Best of luck!

Debbie Albert, PA
Keller Williams Treasure Coast
0 votes Thank Flag Link Mon Sep 5, 2011
ShortsalePain,
What does your agent say? I could start making demands, but I have no standing either. The seller signed a listing agreement promising to sell. They also signed a purchase contract agreeing to the terms you've put forward. A lawyer may be able to review your contract and write a letter "demanding" that they cooperate with the terms of the agreement of face other action. This may not be meaningful, since if they are doing a short sale, they are likely in financial hardship and would have little to attach.
The bank will not approve any terms of rent back. They will likely require the owner vacate prior to close and you should as well. The brother has no rights and your rights are contained in the contract you've signed. Your agent shouldn’t even discuss this or anything else with the brother unless he is their agent or attorney.
0 votes Thank Flag Link Sun Sep 4, 2011
Shortsalepain,
Unless the seller’s brother is on the loan, he has no standing to make demands. The worst he can do, if he is living there, is refuse to vacate necessitating an eviction. This would take some time and money. Your "rights" are to see that your contract is enforced. Your remedies if it is not would likely be to pursue satisfaction in court. Not an easy or cheap process.
You may do well to sit down with a lawyer and see if they have some suggestions to resolve this quickly and at minimal expense. If not, you will at least know what you are dealing with. Best of luck.
0 votes Thank Flag Link Sun Sep 4, 2011
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