Home Buying in Breezy Point>Question Details

Getting Frus…, Home Buyer in Breezy Point, MN

We put an offer in on a short sale, it was accepted by the owners. The bank gave a counter offer that we accepted and signed. We thought we were

Asked by Getting Frustrated, Breezy Point, MN Mon Apr 5, 2010

done. Now they want us to pay back taxes also. Can they do that after you accepted their counter offer?

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Typically what happens in this situation is whoever filled out the short sale paperwork forgot to include back taxes in the net sheet and the preliminary hud that shows teh bank what they will receive. Although the bank accepts a specified price, it is based on them receiving a specific amount and the wording in their addendums will usually state this. In a case like this, you need to assess who made the mistake, if ot was teh listing broker or the negotiator or perhaps no one made a mostake, but if they did, everyone usually chips in money to make it work. It could be split between the owner, the buyer, the negotiator and teh agents all chipping in to make it work, otherwise you risk losing the sale. so assess where the problem came from and ask them to make this work by everyone chipping in, you should have a buyer broker who can assess this for you. good luck working things out
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Mon Apr 5, 2010
Home
You have excellent answer below.


The only other suggestion I can make is to have a face to face meeting between you, your Realtor, the sellers, and their Realtor, and figure out what can be done.

The best question to for your Realtor to ask the Listing agent is: "What can we do to move this transaction forward?".

You also might want to do an updated CMA and see if paying the extra property taxes, plus the purchase price, makes the transaction worth the price.

Good luck.
0 votes Thank Flag Link Mon Apr 5, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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You, and your agent need to get together and read through your signed paperwork. If you hired an attorney, have them there also.
0 votes Thank Flag Link Mon Apr 5, 2010
Agree with Scott and Lenny.
Ask your Realtor for a copy of the Short Sale approval.

The proces is most of the time like this:
An offer is submitted to the Mortgage holder with a HUD-1 Estimate (HUD 1 is the form that disclouse all the charges for seller and buyer, in this case the seller charges) . This form is review by the mortgage holder and some items will be approved (hopefully all of the charges) and some not. Most of the time those changes or changes on HUD-1 Estimate are told to the Listing Agent.

So, for more accurate information, request a copy of the short sale approval and the issue about property taxes being paid or not, should be there.

Good luck.

Benito.
0 votes Thank Flag Link Mon Apr 5, 2010
The key is - did you get an accepted offer in writing without the request for back taxes? If so, you have a legally binding contract and they are legally bound to perform to that contract. If you do not have a signed copy of their accepted offer, then you have a choice as to whether you'll accept their counter, or walk away.
0 votes Thank Flag Link Mon Apr 5, 2010
I agree with Scott, the banks counter was based on them receiving a certain amount and someone probably forgot to add that. That shouldnt be your responsibility.
Web Reference: http://www.lennyfrolov.com
0 votes Thank Flag Link Mon Apr 5, 2010
Really tough to answer this one without a lot more info. Your agent should be able to answer this question for you depending where in the process you are. Did the bank itself sign off as approving the counter or was it just from the owners of the home. You should receive a short sale approval letter from the bank with their terms (the listing agent will receive this and can forward to you). Until you get this approval letter, the offer has not been signed off by the bank...and all the items in that short sale approval letter must be met.
0 votes Thank Flag Link Mon Apr 5, 2010
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