[macgeek]

i **REALLY** think you are being railroaded, that is the THIRD LIE, I have heard out of your agent now. - You can cancel WITHOUT ANY PENALTY During your due diligence period.

(what if the house had a unstable foundation, you would lose your earnest money because you where lied too??)

Tell your agent, that either he clears things up, or you walk, and you will be suing for malpractice, and misrepresentation, and you will do everything in your power to get his (her?) license revoked.

And I HIGHLY RECOMMEND YOU GET A AGENT CONSULTANT IN THERE **STAT**

Jonathan

[ScoopLV]

Originally Posted by macgeek

i **REALLY** think you are being railroaded, that is the THIRD LIE, I have heard out of your agent now. - You can cancel WITHOUT ANY PENALTY During your due diligence period.

(what if the house had a unstable foundation, you would lose your earnest money because you where lied too??)

Tell your agent, that either he clears things up, or you walk, and you will be suing for malpractice, and misrepresentation, and you will do everything in your power to get his (her?) license revoked.

And I HIGHLY RECOMMEND YOU GET A AGENT CONSULTANT IN THERE **STAT**

Jonathan

What? An agent who's salary is dependent on the client's purchase of a house advising the client to buy a house, no matter what? Amazing.


I agree with Scott -- short sales are for cash buyers. It's just too hard to line all the ducks up if financing.

[olecapt]

Originally Posted by ScoopLV

What? An agent who's salary is dependent on the client's purchase of a house advising the client to buy a house, no matter what? Amazing.


I agree with Scott -- short sales are for cash buyers. It's just too hard to line all the ducks up if financing.

Why don't you stay out of things you don't understand?

What that agent is doing is threatening his or her commission not asssuring it.

And shorts work fine for conventional or even FHA financing.

[SouthernSarah]

An RE friend told me that "short" sale is not actually because it is supposed to be quick (obviously, they never are) it is because the house typically sells for less than is owed. In other words, the purchase price falls "short" of the balance due, but the bank can decide to accept it.
Also.... would a bank really refuse the money if it was 14 days later than the 30 day period? Why in the worst market in the nation, when analysts are pointing toward the US sinking back into recession for a few more years, would a bank refuse the sale, just because it took an extra few days to get the loan?
It makes no sense to me.

[ScoopLV]

Originally Posted by olecapt

Why don't you stay out of things you don't understand?

What that agent is doing is threatening his or her commission not asssuring it.

And shorts work fine for conventional or even FHA financing.

The agent is telling his/her client that if she doesn't go through with the purchase, she will lose her deposit. That clearly isn't the case, as you yourself have pointed out.

Sounds like pressure to me. Based with these facts, I see only two motives for pressuring the client not to cancel -- greed or incompetence. How is not presenting the facts acting in the clients best interest?

Originally Posted by olecapt

Last comment. Don't buy the earnest money stuff. You got lots of ways out.

I don't buy a lot of what agents tell me. But then again, I'm an awfully skeptical person at heart.

[Rubyww]

Thanks everyone for the help. I finally sat down and read through the purchase agreement, the short sale addendum and the lender approval letter. I realize then some of the answers to my questions are really there but I just didn't take the time to protect my own interest but instead, relying on my agent to spoon feed me information.

Period of due diligence is indeed 10 days. It starts from the calendar day after I receive the lender approval. During the period of due diligence, I, as the buyer have the exclusive right at my discretion to cancel the agreement. Upon such cancellation, the seller has to refund the EMD to me.

After waiting for eight months, I am tired of this deal. I do not want to participate any more in the game of either to proceed at my own risk or having to request for an extension and wait again at the lender's mercy. I have sent an e-mail requesting my agent to cancel this transaction and copy me on all correspondences. If I do not see the confirmation of cancellation by tomorrow, I'll just send an e-mail to the seller's agent and the Title company myself to cancel it.

[macgeek]

GOOD FOR YOU!
You will be next time smarter, and the Next house will be 100x better then this one!

Jonathan

[WestieJeff]

All I can say is that I hope you just don't like this house any more. What you're encountering is pretty much a normal part of a short sale purchase (sure it doesn't happen to everyone, but this shouldn't be unexpected).

Normal course of action would be to draft up an addendum asking to extend the closing date and extend the due diligence period based on the adjusted closing date. The seller should pretty much agree to anything remotely reasonable since they have no leverage and if you walk they get to start all over. The seller is the only person who needs to agree to adjust your due diligence period or give you some additional time to negotiate the closing date with the bank.

Additionally, if the home is in an HOA, you have an additional right to cancel without penalty until 5 days after receiving the HOA docs.

It is frustrating to have this type of thing happen, but I would take a step back and look at what you're trying to accomplish. If you've waited 8 months, I assume you like the house? The standard city-date poster response is something along the lines of don't jump through any hoops for any deal and only pay under market since "it's a buyers market" and "there any many homes coming to market", which may be true, but only you know what you're looking for and if that is true. If you're buying a 3/2 anywhere in town, then yes, you probably can follow that logic. If you want a certain home in a certain area, then you will most definitely be jumping through hoops and possibly paying over market.

Originally Posted by Rubyww

Thanks everyone for the help. I finally sat down and read through the purchase agreement, the short sale addendum and the lender approval letter. I realize then some of the answers to my questions are really there but I just didn't take the time to protect my own interest but instead, relying on my agent to spoon feed me information.

Period of due diligence is indeed 10 days. It starts from the calendar day after I receive the lender approval. During the period of due diligence, I, as the buyer have the exclusive right at my discretion to cancel the agreement. Upon such cancellation, the seller has to refund the EMD to me.

After waiting for eight months, I am tired of this deal. I do not want to participate any more in the game of either to proceed at my own risk or having to request for an extension and wait again at the lender's mercy. I have sent an e-mail requesting my agent to cancel this transaction and copy me on all correspondences. If I do not see the confirmation of cancellation by tomorrow, I'll just send an e-mail to the seller's agent and the Title company myself to cancel it.

[macgeek]

Jeff,
I agree with you. But this agent was truly 'twisting her in the wind' and no house is worth that kind of shafting. I bought my house on a 'short sale' and had some of these issues as well, but the knowledge of 'how things are done' has made me a smarter person.

Jonathan

[Rubyww]

Since we really like the place, we were briefly contemplating of rescinding the cancellation and ask for an extension. However, there is another problem that the house is now rented and they said they want to handle the tenant outside escrow. First, the condition of the house can be of question now it is rented. Second, even if I go through with the deal, I assume that I need to give the tenant's notice in order to get the house. Third, is it normal to handle the tenant outside escrow?