We've accepted the counteroffer... but we haven't been able to get any farther?

Question

My SO & I have accepted the sellers counteroffer, over a month ago. We had extended the contract as have the sellers. However the house is in the beginning stages of foreclosure. We want to get everything finished so we can move in, but the sellers agent won't finish the deal. Is this legal? Is there anything we can do to get this over with?

My SO & I have accepted the sellers counteroffer, over a month ago. We had extended the contract as have the sellers. However the house is in the beginning stages of foreclosure. We want to get everything finished so we can move in, but the sellers agent won't finish the deal. Is this legal? Is there anything we can do to get this over with?

We have contacted a lawyer. The house was bought originally for 130000.. WAY over what it is worth, at about 90000 which is the agreement we came to, the bank told the sellers to counter with that price. We don't even have a closing date, since all we have is the signed counteroffer. We can't get the sellers agent to do anything more. Is it right to call the sellers directly to find out what is going on?? Or the bank? Do we have to let everything go through the sellers agent? We have our own agent, which the sellers agent wasn't happy about since she first showed us the house.. but it's not like she's lose anything.

The bank told the sellers what to counter.. we accepted. Everything was going great, until the real estate agency decided that they had another offer that was better, another local agent most likely wanting to flip the house; they do that alot around here!! We didn't cut the selling agent's commision in half since she can only get the 3.5% from selling, the buyers agent gets their own 3.5%. The selling agent actually offered to give our agent the commision that she would have gotten from us buying the house if they could "steal" it away. Thankfully our agent is a family member and said "I don't think so! I'm working to find this family a home, not just to make money by selling the house out from underneath them" Right now I'm just thankful we went with her and did use the selling agent, or we would have been screwed even more that we are now.

Answer 1

was their contingent clauses on the counter offer, does the counter offer cover the note? or does the seller have to get the banks permission to reduce the monies they will accepted on the note

if the counter offer does not cover the note, then unless the bank is willing to take less then you probably do not have a deal


the additional detail seems to suggest the offer/counter offer will not cover the note if so it will be up to the bank to decided to accept or not, even if they suggest the 90 does not mean in the end the bank will sign off

basically it all comes down to the bank if the offer is less then the note, after internal lawyer review the bank may decided not to accept the lower offer based on many things nothing you can do about it or speed it up as long as the offer does not cover the note the bank is in the driving seat

they very well in the end decided to take the house into foreclosure to see if they can get a better price then 90K

Answer 2

What you aren't understanding is once a house goes into foreclosure or even pre-foreclosure the lender hires a BIG attorney's firm to handle the foreclosure. So let's say this firm is handling THOUSANDS of foreclosures. They are very hard to work with because they are swamped and they have certain rules. Example..the attorney can NOT speak with you or even your attorney without have a written letter from the seller authorizing the lender and the foreclosure attorney to release and discuss your information. SO the seller writes the letter gets it to their attorney who then writes a letter and sends it tot he foreclosure attorney who then contacts the lender..and this is the process just to get them to START negotiating the deal. You see the red tape here?

Step 2..Even though the seller got a payoff the lender has the write to call the loan due because it is in the rears. SO now the attorney has to review the sale make sure there is enough money to close, pay the lender, pay the foreclosure attorney, pay the Court costs, pay the late fees, etc. and them he has to submit this to the lender for approval. This is NOT a fast process. Usually here we wait 4 to 6 weeks.

I'd STRONGLY suggest finding an attorney that does nothing but short sales or handle foreclosures because often they have created a relationship with the foreclosure attorneys and they know who to talk to and how to get answers a little quicker.

And the Sellers agent should be kept abreast as to whats happening by the attorneys. She has little control at this point.

If you think you are frustrated..can you imagine what the Sellers are feeling?

Hope this helps!

Answer 3

Short sales are tough to get through, and in the end the house just may get foreclosed upon. The ones I have witnessed (other agents in my office - I have not participated in one) required that the title company basically get the file ready to close (have a settlement statement ready) and THEN the lender decides if their net is enough or not.

If they bought the house for $130k and you're getting it for $90k, then it may be worth the bother of it all and the fact that you might not end up getting the house. Foreclosures are on the rise, and so I expect lenders to be more accepting of short sales than in the past.

Two side points...
1 - I wonder if the seller is aware yet that he will get a 1099 tax form at the end of the year for the "forgiven" amount, which will be counted as income to him by the IRS?
2 - OF COURSE the listing agent got angry. You cut their paycheck IN HALF. How would you feel?

Answer 4

Most likely you did cut the sellers agent out of the other part of the commission. The seller normally pays both to the one agent, if there is not another agent involved. Part of the issue is your agent, not getting and releasing the information to you. How are they earning their 3.5%??

The seller's agent may be mad, but she still is not going to give up the sale and is obligated to do the right thing. Keep in mind, this is not a deal that represents a lot of money for the agent, so you may not be top priority

Answer 5

You must have the same ppl we do... We've been waiting forever, too. What date did you give as a closing date? I've been told, by law, if they don't close by the date in your offer, they have to pay $100/day they are late. Don't extend the contract any longer... it's their problem. If you find any other way to speed it up, let me know. I'm irked to high heaven, too. By the way, ours is also a foreclosure.

~Laura
http://www.milliondollarbody.com/signup/?username=lauchremi

Answer 6

call your agent. they represent you. they don't get paid until you close on the house.

Answer 7

get a lawyer.