I am closing on a house in 2 days and when I contacted my realtor today, aparently the seller is trying to get a short sale approved. My realtor has been working on this for the past couple of weeks, I've had no knowledge of this. The seller had signed off on a contract stating that he would pay for majority of my closing costs. What problems could there be with this. I am still waiting to see if we will still be able to close on Wednesday....
2007-08-13 14:19:12 · 8 answers · asked by Houston 1 in Business & Finance ➔ Renting & Real Estate
the home inspection, etc. - all has already been completed last month. Was not aware this was going to happen.
2007-08-13 14:29:30 · update #1
First of all, you will not be closing on Wednesday. Sorry, but if the short sale is not approved, you'll not even be able to buy the house.
Essentially, the seller owes more on the home than your offer will cover. The lender must approve the terms of the sale because you'll have to agree to take less than they're owed in order for the sale to complete.
This can affect you in a number of ways. First of all, there is no guarantee that your transaction will close. The transaction could take 90 days to close. The lender could send you a counter offer of what they'll accept that is above the already agreed upon price.
Your realtor should have informed you before you wrote an offer about this. Have a good stern talk to him/her about this.
2007-08-13 14:51:07 · answer #1 · answered by Ben V 2 · 0⤊ 0⤋
Ben V nailed it on the head. You will not be closing Wednesday. The Realtor should have explained this to you in the beginning. Short sales are a good way to buy a house at a good price but be prepared to do some negotiations with the lender. That is incredible you are just finding out about this. Normally they are listed on the MLS stating short sale possible. Very Strange.
2007-08-13 16:19:47 · answer #2 · answered by homes_az 2 · 0⤊ 0⤋
Another one with bad news....there is no way you are closing this week, or even this month. This (agreement to short sale) was supposed to be done before they even listed the house. I doubt the bank is going to approve this one, it is not being done correctly.
A short sale simply means that the bank has agreed to accept less for the house then is owed on it. This does not mean less then it is worth.
Because it takes the banks cooperation it is agreed to before the house is offered for sale. It sounds like your seller skipped that part and agreed to sell for less then he owed. The bank does not have to agree to this, and your seller is likely the one (it would not be you by any means) that had to come up with the short amount in order to close this sale.
Personally I think this is not going to close....and a word of advise.....get yourself another real estate agent. The one you have has their head up a very unsunny place. There is no way you would be in this position if they had any clue what they were doing.
2007-08-13 16:32:01 · answer #3 · answered by Landlord 7 · 0⤊ 0⤋
I'd call the realtor RIGHT NOW to get a clarification. I don't mean in the morning, I mean right now. If you don't understand the terms of the deal, you can get screwed so badly, and in so many ways. You may have time to figure out if this is a good deal or not.
When you wrote the offer, did you have a lawyer look at it before you signed? If not, you're a fool. I've bought and sold 3 houses, and living in my 4th. I still don't understand all the find details. That's why I hire lawyers to look at this sort of thing. Unless you can afford to throw away the purchase price of the house, the lawyer's fee is cheap insurance.
2007-08-13 14:28:06 · answer #4 · answered by Ralfcoder 7 · 1⤊ 0⤋
i'm shocked your realtor did no longer grant you with a warning that it is par for the path with a quick sale. no person has any reason to hurry different than you and the real belongings brokers (they do no longer gets a commission until eventually settlement). each physique else is accumulating a earnings regardless of how briskly or sluggish they technique issues.....and you're twenty 5th in line. a quick sale could nicely be VERY complicated, many purchasers won't even evaluate dealing with one. yet, i'm specific your getting a lot, which will hopefully make the wait well worth it. via the way PMI negotiator has had it for 6 working days (July third became a trip)
2016-10-02 06:50:08 · answer #5 · answered by ? 4 · 0⤊ 0⤋
A short sale in real estate occurs when the outstanding obligations (loans) against a property are greater than what the property can be sold for.
+If a property is sold under a short sale, the lender may require the buyer to make up the difference, either through a personal obligation or a collection.
+The IRS often gets involved with short sales, because they are seen as a relief of debt and may be treated as income. Check with your accountant.
2007-08-13 14:36:15 · answer #6 · answered by Tomato 3 · 0⤊ 0⤋
I agree! You need to dump this agent and get someone who is professional.
Once again, do not settle for the first agent you meet. Shop around for one that makes you feel comfortable and is upfront.
2007-08-13 19:36:46 · answer #7 · answered by ROCKY 2 · 0⤊ 0⤋
that means they want to dump the house in a hurry. i hope you had it inspected.
2007-08-13 14:26:23 · answer #8 · answered by Anonymous · 0⤊ 1⤋