NJ short sale - options with stalling seller? (2013, negotiating, sales)

[mgobuyer]

Super-short version: Short sale, Equator process begun in October 2013 and nearly complete, and upon request for tax return, seller is insisting on waiting for 2013 return. We'd prefer not to walk away, and we'd also prefer not to wait until next year for the process to be completed. Since they are basically refusing to provide a document (current tax return), do we have any recourse?

In a broader sense, I guess my question is, from a legal standpoint, is there any sort of good faith obligation on the seller's part once the Equator process begins? Does them saying they won't provide it--as opposed to "can't"--help us at all?

Thank you, and sorry for my inherent cluelessness!

[AZJoeD]

Unfortunately there is little that you can do because the owner of the house is still the owner of the house. The owner of the house is negotiating a settlement with their creditors that includes your offer as part of the settlement. You are a third party to the settlement. The only leverage that you have is the terms of the offer/contract that you have signed with the seller. If the terms of the contract offer you some leverage you can invoke that option. Unfortunately in most short sales the only option the buyer has is to cancel (or wait).

[399083453]

Might just be a stalling tactic so the homeowner can stay in the home. Or maybe they need the 2013 tax return to show hardship. You'll never really know until sometime next year after the tax return clears and the irs provides a certified copy.

Personally, I'd walk. You don't even know what the bank wants for a price. Your just hoping its good.

[Modification Specialist]

Originally Posted by 399083453

Might just be a stalling tactic so the homeowner can stay in the home. ......

Good Call 399"

It doesn't make sense - it is not a requirement of Equator, it is up to the bank to require two year tax returns.

The options are to go back and use the tax return from year before, if the bank doesn't except that. Then forwarding a tax extension letter show the reason for the year of delayed filing.

Maybe they are thinking the value will come up resulting in a higher selling price.....lol!!!

If you can't work it out, it's a buyers market - continue looking.....

[mgobuyer]

Thank you for all of your feedback.

Unfortunately, it sounds like the seller is just doing their best to stall the process and stay in the house for as long as possible. Oh well...back to the hunt!