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Currently going thorugh a short sale. Got bank approvals, opened escrow. The next day the selling agent says there's a forecloseure date on the hosue in a week and we need to get an extension. We submitted all paperwork, have not heard anything in 3 weeks.
Is it illegal not to diclose a foreclosure sale date on a house prior to going into escrow?
I'm not so concerned about finding out now, I'm more concerned about protocol and if that is legal to not disclose it before going into Escrow.
The selling agent knew about the foreclosure date and had gotten extension on those dates in the past. The agent never told us about the extension or that there was one pending within the escrow period. That's what I'm concerned about knowing if that is legal or not.
Thanks
Thanks Silverfall....as a complete real estate novice, although still buying my 2nd home, it's beyond me that there isn't any rules or regualtions that govern agents. Like you said it would have to go to a judge in order to make sure I get what I need back if things fall through.
It seems they can do whatever and than deal with the consequences. There isn't any accountablity for their actions before they do their actions, they can get away with whatever. I'm sure I'm beating a dead horse right now.
In our listings, there is a section where you mark:
Short Sale Y/N
In Foreclosure Y/N
Bank Owned Y/N
Was it disclosed in the listing?
It is also public record, and if you don't have an agent representing you, it is information you could have found out on your own. A call to a local title company could have found that out for you.
So yes, they probably should have told you, but your agent, or you, should have known to ask as well, and really should have found out before making the offer in the first place.
Also, its a little confusing, but the "selling agent" is your agent as the buyer. I believe you are referring to the "listing agent". Common misunderstanding. However, as a self professed "complete real estate novice", I hope you do have your own agent, to help guide you through this sort of thing. Only someone with a lot of experience should buy a house unrepresented.
Thanks Silverfall....as a complete real estate novice, although still buying my 2nd home, it's beyond me that there isn't any rules or regualtions that govern agents. Like you said it would have to go to a judge in order to make sure I get what I need back if things fall through.
It seems they can do whatever and than deal with the consequences. There isn't any accountablity for their actions before they do their actions, they can get away with whatever. I'm sure I'm beating a dead horse right now.
Well there are rules and regulations, but they are dealt with via complaint. If the agent is found to have violated their fiduciary duty to their client then they can lose their license.
I do agree with Lacerta that if you have a buyer agent representing you, that once they knew this was a short sale, they should have immediately asked when the auction date was. That is fiduciary duty 101.
Currently going thorugh a short sale. Got bank approvals, opened escrow. The next day the selling agent says there's a forecloseure date on the hosue in a week and we need to get an extension. We submitted all paperwork, have not heard anything in 3 weeks.
Is it illegal not to diclose a foreclosure sale date on a house prior to going into escrow?
Are you buying a short sale; or are you selling your home as a short sale?
Apparently it was disclosed that this was a short sale, so it's most likely that the seller is behind in the mortgage payment, and that at some point in time the lender will send a Notice of Trustee Sale (in Arizona-it varies in different states) and a sale date is made public.
This public notice puts the world on notice that there is a scheduled foreclosure sale date. Therefore, the seller, buyer, and agents all had notice of the date. Whether you saw it or not, you had notice.
The date of the sale can be changed by the lender without notifying the agents.
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