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So, we're in the middle of a short sale, and the selling bank just came back with approval on our offer...if the seller pays $2k to a second lien holder (same bank, different investor...apparantly)
She has no money (hence the short sale), so her realtor calls our realtor...basically she wants us to give her 2k to cover this. She wants an addendum on our REPC that we will give the seller $2,000 to cover "sellers closing costs".
I'm so far along on this property, and getting a *tremendous* deal on this...I'd really hate to walk away based on this, but it seems strange.
So, we're in the middle of a short sale, and the selling bank just came back with approval on our offer...if the seller pays $2k to a second lien holder (same bank, different investor...apparantly)
She has no money (hence the short sale), so her realtor calls our realtor...basically she wants us to give her 2k to cover this. She wants an addendum on our REPC that we will give the seller $2,000 to cover "sellers closing costs".
I'm so far along on this property, and getting a *tremendous* deal on this...I'd really hate to walk away based on this, but it seems strange.
Is this common? Or am I being suckered?
The seller obviously has no money. They probably need the 2K just to get help with rent on their new rental home (maybe landlord wants first and last months rent).
Depends on the state, but sellers have to pay certain closing costs. The Real Estate agent for the seller is acting in their clients best interest to save what little money they have left. It "circumvents" the banks requirement...kinda of shady to me but by giving them 2K, they can pay off the 2K to the second lien holder.
If you are already getting a very good deal, do you want to lose the contract over 2K. Think about it. 2K? And its a short sale so you know how long it will take to find another similar short sale.
The seller obviously has no money. They probably need the 2K just to get help with rent on their new rental home (maybe landlord wants first and last months rent).
Depends on the state, but sellers have to pay certain closing costs. The Real Estate agent for the seller is acting in their clients best interest to save what little money they have left. It "circumvents" the banks requirement...kinda of shady to me but by giving them 2K, they can pay off the 2K to the second lien holder.
If you are already getting a very good deal, do you want to lose the contract over 2K. Think about it. 2K? And its a short sale so you know how long it will take to find another similar short sale.
Yeah, that's what I figured. I accepted the condition and now we have written approval. I found out that the balance on the sellers mortgage is almost 80K higher then the price we are paying. Wow. I understand it's cheaper for the bank to do this than to foreclose, but it still surprises me.
I think my agent wants the good deal we found. it is a short sale, we have the contract, put the earnest money down, title search found hoa fees,and 2nd and 3rd leins. and she keeps wanting to show us other houses....now we got a phone call from her saying that the sellers agent is Walking Away from the short sale and pulled the house off the market??? can this happen, can the sellers agent quit? what can we do? we want this house
I think my agent wants the good deal we found. it is a short sale, we have the contract, put the earnest money down, title search found hoa fees,and 2nd and 3rd leins. and she keeps wanting to show us other houses....now we got a phone call from her saying that the sellers agent is Walking Away from the short sale and pulled the house off the market??? can this happen, can the sellers agent quit? what can we do? we want this house
Well, it's likely the seller decided to cancel the listing. But the listing agent can quit. Likely their broker would reassign the listing to another agent if the seller wanted to continue.
I agree with your agent. Given that the owner has 2nd and 3rd liens, I also highly recommend you find other homes to consider. The odds of successfully completing the short sale go down with each lien that has to be negotiated. I highly doubt she wants to buy it herself. You do realize that it may take months to get any answers from the various lenders involved?
I think my agent wants the good deal we found. it is a short sale, we have the contract, put the earnest money down, title search found hoa fees,and 2nd and 3rd leins. and she keeps wanting to show us other houses....now we got a phone call from her saying that the sellers agent is Walking Away from the short sale and pulled the house off the market??? can this happen, can the sellers agent quit? what can we do? we want this house
Pulled the house off the market? Was any reason given?
You should have at least been given a reason - especially after paying for a title search.
It is very common for the seller to not have any funds to contribute to his short sale. Once a Short Sale Lender has made his mind up that he will not contribute (i.e.lower his demand $2000.00 so the 2nd can be paid off ) he will not!
It is impossible for you to be taken advantage of by contributing the $2000.00 to seller to payoff the 2nd in order to close the deal. The HUD will be issued and even your escrow instructions will say exactly how the funds are being disbursed..and they must comply with the contract and all addendums (the addendum to be signed by all parties concerning the $2000.00) ...so if the value is there and you got a great deal and and you have the money and you love the house......buy it!
ooughhhhhhhhhhhh, both Realtors need to go get some more education before they go to jail, if not to late..................bad , bad, bad.....
ooughhhhhhhhhhhh, you have no idea what you are talking about.
I know this poster does not post anymore and this was an old thread but since it was bumped I figured I would get that out there.
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Sr. Loan Processor/Office Manager
