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I was just wondering if the bank would redo the contract and I could get some assistance with closing cost.
I've decided not to buy the house and just find another one. I don't want to go through the hassle of MAYBE getting the home to get my hopes up again and have them brought back down.
Let me get this straight...you heard the seller has some issues with his out of poket costs, THE DAY BEFORE CLOSING and now you hear they are going to short sale.
Do you have your own agent? What does your contract say about default? Are the sellers current on their mortgage payments? How short are they in terms of covering their own closing costs?
There is no telling if their story will qualify for a hardship, and thus a short sale.
I too am confused what you mean about getting financial assistance from the seller's lender?
Yes basically that's what happened. I do have my own agent and she is consulting with his but I'm not sure how much he is in default.
It's just a mess I think neither him nor his realtor were being forthcoming about things. So I'm just going to pursue getting my money back and move on.
Yes basically that's what happened. I do have my own agent and she is consulting with his but I'm not sure how much he is in default.
It's just a mess I think neither him nor his realtor were being forthcoming about things. So I'm just going to pursue getting my money back and move on.
Sounds like a plan, to me.There is no certainty this situation will qualify for a short sale and you could be spinning your wheels for a long, long time.
As I understand it, Texas, unlike most states, maintains the privacy of real estate transactions and seals all records. There is no way to know what the seller owes and thus it may be likely that there are more surprises, like this, than occur elsewhere. How does one asertain that a seller has sufficient funds to close, before closing?
Either the seller's agent was way off in their net sheet at their listing appointment, or the seller lied about his pay off amount when the net sheet was created.
The HUD1 is usually done the day before closing, we all wish it was sooner than that, but the title company would have ordered the payoff, and that could have been the first time the seller knew what his actual bottom line was. He probably wasn't calculating closing costs nor his tax proration for the year.
You always have "specific performance" where you can compel the seller to close, or sue for damages like the difference in interest rate of what you were locked in with verse the interest rate you ended up with once you find a new house, but most courts laugh at lawsuits like that.
If the owner decided to do a short sale just now, walk away, most likely it will take months to complete the sale. It takes so long because, first, the sellers have to prove to the bank that they are in need of theur help, by providing bank statements, pay stubs, a hardship letter, and other requirements, if the bank approves it, which can take a month or longer, then they assign a negotiator, in the meantime the property stays on the market for more offers to come in, then they choose the best offer. What that means is that at this time the contract you have is void, you have to start all over again, and at this time you don't know if the bank will even approve the short sale.
I have completed several short sales, but I also have seen buyers wait months, only, to not have their offers accepted. Specially, if you qualify for the TAX CREDIT, don't wait on a short sale that has not yet been approved at this time.
I'm currently trying to purchase a short sale and it's already been 2 months. If the tax credit wasn't extended I wouldn't be holding out this long. Just be prepared to wait a while if you really want the home. Otherwise I'd start looking for something else.
Find out how much the seller is short...Maybe it will be worth your while to pay the difference if it is not too high..Just a thought..it may only be $1,500 short..check it out!
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