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Back in April I made an offer on a short sale in Northern NJ. I was notified by my RE attorney that this short sale had two liens from two different banks, a worst case scenario and would require a lot of patience. After going back and forth with a negotiator assigned to this, six months later I received in writing letters of approval from both banks. They did settle for $10k more than my original offer which I felt was a fair deal for this house. Once I received the approvals I immediately had the house inspected, no major issues found.
Two days later I find out that the family was not approved for the HAFA program which offers $3k to the family for moving expenses, etc. The family will not agree to close on the house without this assistance since they cannot afford to move. I have not been directly asked to pay for this, but it has been inferred. Additionally it looks as though they are asking for 4 weeks after closing for a move-out date at my expense. I am renting right now with my lease up as of Nov 1st at $1500/month. I can go month to month with my lease, but at an additional $250 a month fee on top of my lease which I understand.
Although I feel this house is worth it, the additional cost of leasing for another 1-3 months is frustrating and starts to border on not worth it. An additional 4 weeks of occupancy after closing is out of the question. There is plenty that needs to be done to this house and these additional costs will drastically set me back. I’ve been very patient through this and actively looking at other houses. I am going to give this another week to see what happens, but any advice is greatly appreciated.
It boils down to whether you want the house or not. If you want the house, remove your frustrations. Since you have the letters, you can see there is no rent back provision. Since the owners no longer pay for a mortgage, maybe they would be willing to cover the new mortgage and your rent.
I think it really comes down to what pp stated. Its up to you to decide how much you want the house. I think your totally justified in the way you feel and it does seem like its getting to the point where you wonder even just based on principle if this is getting ridiculous. That being said, I wouldn't want to lose a house I love over principle and would prob pay. Good luck!
I have to say I can relate slightly because we are trying to buy a ss and the seller is still occupying the property. He has pretty much neglected a lot of it at this point. No salt in the softener,very little oil in the tank,kitchen window broken,kitchen faucet broken...ect. He hasn't paid his mortgage in over 12 months. His house is full of junk and he made comments when we were there about how he doesn't know what he is going to do with all his stuff and so on. I feel for the sellers of short sales that they are in a hardship but at some point its time to get your self together and figure out what's next for your life.
If you decide not to buy the house and it goes to foreclose no one is going to pay for their move then. So what they will live on the street? I doubt it.
Just an update.
After careful consideration I offered the sellers the $3k they did not receive for the HAFA program. I would not agree to Use and Occupancy but would push back the closing 1-2 months if everyone would agree. The sellers declined this. They have children in high school and it appears unless their children can remain in the school district, they will not agree to closing.
Nearly 7 month later and I finally find out about this from their RE agent. I wish he would have told me that 7 months ago so I would not have wasted my time, money for inspection, and now additional month to month fees for my apartment.
Guess I learned a lesson here that even if you have 2 liens which have been agreed upon by the banks and money offered to help you move, no one can force you to sell, until foreclosure that is. Recently there was an article in the paper stating that in NJ foreclosures can take up to 3 years.
To me it looks like they really know how to work the system....good for them.
So the sellers declined to close due to children in the school system after 7 months of waiting for bank approvals, which I received in writing. Today I checked the MLS and I see the house has been relisted. I'm livid. So is this just a game that they will continue to play? List the house, decline to sell, then relist the house again all while more than likely not paying their mortgage? Unbelievable.
So the sellers declined to close due to children in the school system after 7 months of waiting for bank approvals, which I received in writing. Today I checked the MLS and I see the house has been relisted. I'm livid. So is this just a game that they will continue to play? List the house, decline to sell, then relist the house again all while more than likely not paying their mortgage? Unbelievable.
Yes this is a game to many "short sellers".
While we like to think the good in people. That there are struggling homeowners who want to do everything possible to short sell their homes.
There are others who game the system to drag out the process as long as possible.
That's what I have been saying all along that the mortgage and forgiveness act needs to expired next dec 2012. Because it ends the shell game for those savvy short sellers who want to drag out the process and have their cake and eat it too (say not pay thei mortgage for over 3 years and than getting into hafa programs and having everything forgiven).
I am sorry to say this. But there are many savvy short sellers out there. Much more than people think.
The government needs to shut down this law and not renew it. Just let the home go into foreclosure. Once people realize short sell isn't an option foreclosure process is much faster even in judicial states.
I came in knowing fully well what I was up against, fell in love with a few houses, started shopping at Lowes as I already had in mind what updrages I was going to make, then BAM all 3 homes we lost the bid! Reality sets in.
I totally disassociated myself during the rest of the home searching, finally got an offer accepted and basically forgot about the home and when I get my weekly updates I'm always prepared for the other shoe to drop...lol
Good Luck!
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