Vicky, Home Buyer in Burbank, CA

purchasing bofa shortsale now homeowner has Bankrupcy problems help!

Asked by Vicky, Burbank, CA Sat Dec 3, 2011

Hello,

Previously we asked about shortsale process and got some great answers =). So now the plot thickens...... we put our full price offer end of Sept and Early oct we recieved a signed contract accepting our offer. We were told that they had to get a tax lein released before submitting the offer to the bank. Several weeks later, they informed me that they were finalizing a bankrupcy! Whoops now the property is on hold till their bankrupcy is finaled. What im nervous about is the fact that the escrow lady involved with this property is friends with the owner of the house. Maybe they are trying to drag it out to buy time as its been 6-7 weeks and now they have told us that it could take another month or 2 before bankrupcy is discharged as they had corrections to make. (I! Im scared BofA will foreclose and send property to auction and skip our shortsale contract. Could this happen? Found out that the BofA trustee does not have any knowledge of our shortsale contract =(. Advice?

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6
Annette Law…, Agent, Palm Harbor, FL
Sun Dec 4, 2011
That is the way short sales work. You can spend months working through the process, jumping through the hoops only to find the objectives of the onwer may have changed. These objectives CAN be influenced by the conditions the bank may impose on the owner. So, at the very last moment, if the owner does not like the deal the bank is offering them, may decide the outcome most beneficial to them is a bankruptcy. You, the buyer, will have no influence. As many have said before, closing a short sale is a miracle! Only 30% of listed short sales ever close as a short sale.
0 votes
Tammy Hayes, Agent, Port Charlotte, FL
Sat Dec 3, 2011
I had a buyer put an offer on a short sale. It got approved. We were two weeks away from closing. The seller decided to file for bankrupcy and was advised by her lawyer to take the home off the market. My buyer was out of all the money he put into the sale for home inspection, appraiser, survey, etc. I would check with your own lawyer to find out what to do.
0 votes
Vicky, Home Buyer, Burbank, CA
Sat Dec 3, 2011
Let me add, they never opened escrow with me nor took a deposit......... All I have is a contract and a hand out wanting to open escrow/ put deposit but can't since they are in BK........
0 votes
Emily Knell, Agent, Huntington Beach, CA
Sat Dec 3, 2011
Your offer SHOULD be submitted to BofA. You or your agent need to stay in close contact with the listing agent & if you're not getting good communication with the listing agent, get their broker involved too. You need to make sure that auction dates that are set are ON HOLD or are being Postponed.

You can also call the escrow officer directly to try to get information. Believe me, all the agents, including the escrow officer want to get paid, they want things to move along as quickly as possible including the discharging of the BK.

Shoot me an email directly, if you have any questions, I don't look back on this same Trulia thread for answers posted after mine.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
0 votes
Margaret Has…, Agent, Tampa, FL
Sat Dec 3, 2011
The bank can't proceed with the short sale while it is in bankruptcy. You'll just have to wait if you really want the home. The escrow lady being friends with the seller would have nothing to do with your escrow deposit, as escrow is controlled by strict laws.
Web Reference:  http://tampahouse1.com
0 votes
Vicky, Home Buyer, Burbank, CA
Sat Dec 3, 2011
They have supposedly had their hearing for BK.......... I Do really want this house!!
0 votes
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