If a buyer and seller have a signed contract and it goes to the lender in a short sale. Financing and

Asked by Joyce B, Dixon, IL Mon Apr 27, 2009

everything else needed to purchase is already in place. Contract has a 40 day closing date when contract was signed. Lender holds it for 3 weeks then approves it. Lender then wants to still close on original date which is just 2 weeks away and instead of granting an extension they accept another contract for cash and close even before the closing date on our contract. Is this legal as our contract was approved by them first and had not even gone past original closing date. Do we have any recourse??? I need to mention this was a short sale.

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5
Alex Krumm, Agent, Sarasota, FL
Mon Apr 27, 2009
Joyce -

It depends on your contract; it sounds like you really need to speak with an attorney. There are some scenarios in which this can happen, but not many; without knowing the specifics, none of us will be in a position to answer this question.

If you'd like to speak to a lawyer, Steve Greenberg is an excellent attorney in our area. He works with Icard Merrill and his number is (941) 366-8100.

Alex Krumm
Re/Max Alliance Group
941-234-3597 Direct
941-954-5454 Office
alex.krumm@verizon.net
http://www.sarasotapropertygroup.com
1 vote
Randy and Vi…, Agent, Punta Gorda, FL
Tue Jun 10, 2014
In the short sale process the lender holds all the cards and are under no obligation to extend any contract regardless of the reason.
0 votes
Toby Delbrid…, , Englewood, FL
Mon Sep 14, 2009
I am sorry to hear of your situation. This is not entirely uncommon in today's short sale / foreclosure environment. While reading your question I noticed that you mentioned that the Lender had approved your offer after 3 weeks. Lender approval definitely does not constitute acceptance. Lenders are notorious for holding on for the highest and best offer, and who can blame them. They are losing money anytime these types of sales happen.
The complete process is something that your agent should have mentioned early on. In almost all the most active short sale markets using financing can be difficult as cash has added flexibility and security to close on these deals whenever the bank is ready. Do not get discouraged though, speak with your agent and find another great house. Some banks may even offer to finance the sale for you allowing you to get into a win- win situation with the Bank.
0 votes
Tim Ryan, Agent, Mokena, IL
Mon Apr 27, 2009
More than likely you will just be kicking a dead horse. I would suggest you find the buyer a new home to purchase. sounds like the lender already moved on. Get paid find your buyer a home.
0 votes
Keith Sorem, Agent, Glendale, CA
Mon Apr 27, 2009
Joyce
I want you to know that the banks in the US want to take over real estate. That would mean no more Realtors as we know them today...after this experienced, what do you think of banks running real estate?

You need to have your Realtor, their broker, or an attorney review the paperwork. Many lenders in a short sale stipulate that they have the right to continue taking offers up and until escrow closes. Although I do not think it is in the industry's best interest, getting as much money as possible for the lender minimizes their loss, so it makes complete sense for the lender.

Welcome to the world of short sales.
Caveat Emptor! (Let the buyer beware)
0 votes
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