Since you are getting so many contradictions,the only way to get to the bottom of it is to hire a lawyer...not sure you want to go that far.
Enough has been said about the path of the transaction so I'll just shine a light on a few points:
1) In your question you stated:
"We begged for an ext from the seller's realtor. She says it's not the bank that's preventing it, it is the seller because he wants a tax break from the 2007 tax act that will expire Dec31. I work for a CPA & he says that law does not even affect Calif because CA is non recourse anyway."
I think you may want to talk to your CPA again. In CA, I believe the non-recourse protection only applies to purchase money loans; if the Seller ever refinanced during ownership non-recourse protection is gone.
Now, come Jan 1, 2013 Senate Bill 1069 [ Cal. Code of Civ. Proc. Â§ 580b(c) ] kicks in whereby Homeowners who default on their refinance loans (one-to-four residential units) are protected against personal liability for any deficiency following foreclosure. The anti-deficiency protection, however, DOES NOT extend to any cash out in a refinance. This new law only applies to refinance loans or other credit transactions used to refinance a purchase money loan, or subsequent refinances of a purchase money loan, that are executed on or after January 1, 2013.
The federal Mortgage Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their PRINCIPAL residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. This provision applies to debt forgiven in years 2007 through 2012. California has a similar law enacted April 12, 2010, SB 401, called the Conformity Act of 2010 covering January 1, 2009, and before January 1, 2013.
2) In your reply to Kawain you stated:
"There is no paperwork that I signed stating a deadline. Back in August, when we originally signed a contract to buy it, it states escrow will be 45 days from acceptance, however we had to wait until the bank approved the short sale, which was only recently"
Ask your RealtorÂ® for a copy of the Short Sale Lender's Approval letter - these always have due dates! The 45-day close of escrow clock starts once your RealtorÂ® receives a copy of the approval.
3) I really do not understand why the Seller is pressuring you; personally, as a Seller in a distresses sale position I would simply change the listing status to "Pending, Show for Backups" with "Cash Only" and "Escrow must close by 12/31/12" disclosures to increase the likelihood of closing before the end of the year just in case you are unable to do so. Wouldnâ€™t this be best for everybody involved?
In any case, good luck! -Steve
I'm sad to hear that you are going thru all this.. I would need a little more info:
1. Do you have a copy of the short sale approval duly signed by the seller? What is the deadline per that letter? If you don't have that letter ..demand it.
2. Have your released any contingencies yet?
3. What was the number of days to close escrow per the purchase contract?
Seller can't just cancel the contract by himself unless you breach the contract. If you have all the intention to close and paper work to support..they can't cancel. If you exceed the timeline..seller would have to give you notice to perform..which gives you additional 2 days. If you exceed the Close of escrow time ..then they have to give you demand to close escrow which gives you 3 more days..
Regarding the agent's rude behavior and lack of communication.. you or your Realtor talk to the listing agent's broker and address this issue.
Hope this info helps...Good luck!
Sounds like you accepetd terms that were not realistic. Unless you are paying cash escrows very rarely close in less than 30 days. There are just too many variables. In my opinion it does not matter what the reasons are I would NEVER have my buyer eneter into a deal where they are being asked to close a lender financed escrow in less than 30 days.
You opened escrow duringa a month with TWO FEDERAL HOLIDAYS. Thsi means banks were closed at least two days as well as escrow. Not to mention people tend to take short vacations over the Thanksgiving Holiday.
This dead line was simply unrealistic, I am afraid your agent had his/her hands tied from the word go, and had very little control over getting this very very unrealistc deadline reached.
Kawain Payne, Realtor
Short sales are not easy for anyone, ESPECIALLY for buyers. It's not right to push us or our lender even more for your own personal gain....
I've seen ads out there from realtors telling people to hurry up and sell (Calif) before the end of the year due to the tax law expiring. This is False advertising and you are misleading potential sellers.
I'm thinking about complaining to the realtor's broker.
I'm done venting, thanks to all who tried to help.
Short-sale can be unpredictable and there is guarantee that they will close on time or close at all.
Per your particular situation: ask your realtor to serve seller with extencion of time addendum ( prior to producing extencion of time - consult your lender and find out how much time you will need to close ).
See if seller will accept your request for extencion of time.
A short sale requires, patience, organizational skills, negotiations skills and creativity... and repeat patience 3 times. if you are beyond your patience limit, then you should move forward with another transaction and try to avoid the short sales.... each transaction is unique... I have ones that took 23 others.. and others that I have been fighting for over 15 months.
Nikkolene Callis, Real Estate Agent
Cruz, Mitchell, Callis
The Seller will not be able to do this again before the end of the year; so it sounds like a bluff.
Have they given you a "Notice to Perform"?
Where is YOUR Realtor while all of this is going on?
Possibly you should go visit the Listing Agent's Broker and find out the truth; I would bet that you will find a sympathetic ear; he will want this to Close.
Good luck and may God bless