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Home >> Lending >> Home Mortgage
Tall Problem with Short Sale
My step-daughter made an offer on a house seven months ago, which was a "short-sale"; the residents were being evicted. The price offered was accepted by the bank; therefore, no one else has been able to look at the house and/or make an offer. A month ago, one of the banks involved in this insisted that we give them an additional $5K, because the market is starting to move up in Southern CA. We agreed, and expected this process to be expedited, or at least move a little faster, as I'd like my step-daughter to be eligible for the $8K tax credit. It doesn't appear that the bank is in any hurry to finalize this deal. The people finally moved out last week, so the house is now sitting empty. Do we have any recourse or do we just have to wait for the process to run its course? Can the bank come back and say they want another $5 or 10K to close the deal? Over the past seven months, we've also seen the interest rate go from 4.9 to 5.5%. Every month that passes is costing us more money.
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 The problem here seems to be that if you have a signed and accepted offer. if the price dropped, would the bank expect you to say you wanted them to discount it $5,000? With a signed offer, they shouldn't. It sounds as though you have done what was required. Hopefully, there is a time requirement to complete the sale. Try pushing the bank and consider consulting an attorney who may contact them for you. You want representation anyway; start now. Protect your interests.
If there is no signed offer, tell the bank (the seller) that you want this done now. If they are slow, go elsewhere. It may well be that the bank wants to see how much of a recovery they can get to reduce their loss. If that is the case, then they are not a motivated seller and may drag this on for months.
Published on BankingQuestions.com 11/03/09
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