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Replies (9)
- Christine McGinty, "whitemountainagent"
- Contributions:273
I'm sorry to hear you're having that kind of trouble. I haven't heard this scenario concerning short sales yet. I've seen this done on foreclosure properties, but not short sale properties. The lenders always want a loan approval but I haven't seen them requiring the use of their bank much less denying an already existing loan approval. Unfortunately the game is ever changing when it comes to short sales so I'll be curious to see if anyone else is experiencing what you are.
- Christine McGinty, "whitemountainagent"
- Contributions:273
One thing I didn't ask, has your credit status changed from the time you got your first loan approval to the time the short sale bank tried to qualify you? If your credit has changed, for example bought a new car, that wasn't on your first approval but is now showing up on the latest one that could explain why you were approved one place but not the other.
- Jeffrey Reyes, "Jeff Reyes"
- Contributions:182
Hi. Our teem does tons of short sales every year. We ask buyers to prequalify with the lender that is foreclosing because if they know that they can service the new loan as well, it makes for a smoother process. This is just a request of ours not a requirement. Your agent needs to call the lender that is foreclosing and work for you to get a resolution. I would also recommend consulting with a real estate attorney. Please feel free to email or call me.
- kaleegrl30
- Contributions:4
My credit hasn't changed and I haven't made any purchases what so ever. My realtor is just as stumped. We were originally told that we could use the lender of our choice, but now they're saying different. A co-worker of mine went through the same thing, when purchasing a short sale, and in the end was able to use the lender that she was orginally approved with. I'm so frustrated. I understand that short sales can be complicated, but I don't understand why the lender would choose not to sell the house to me if the money is right there and ready to be used :(
- kaleegrl30
- Contributions:4
Thanks Jeff, she is definetly going to do all she can. She's amazing. I'll tell her about the realtor attorny idea. She is going to speak with her boss today and see what he says. Hopefully some good news will come out of it :)
- Brian Teyssier, "Brian Teyssier GRI"
- Contributions:964
Based on the info you provided, no it is not legal for any party to require a buyer to use their service. The pre-approval part is o.k. but the seller's note holder (lender, bank, etc...) can not force you to use them.
As always, consult a real estate attorney.
As always, consult a real estate attorney.
- kaleegrl30
- Contributions:4
Wow you guys, thank you so much for responding. I really appreciate your input :)
- Rocky G.H. Hawrysz, "Rocky G.H. Hawrysz"
- Contributions:125
There are a few questions that come to mind with regard to this scenario, but one question stands out: Did the seller accept, sign and return to you the California Residential Purchase Agreement your agent submitted? If they haven't, they basically can sell to whom ever they wish and to who ever has the best offer in their opinion. If fact they don't have to sell at all and could cancel. It's basically like selling anything you own. You don't have to sell to a particular individual if you don't want. There are some caveats to this, but that would involve proof of discrimination.
I hope this helps.
- Rocky G.H. Hawrysz, "Rocky G.H. Hawrysz"
- Contributions:125
If you have a signed agreement, it's not easy for a seller to cancel. Have your agent explain the California Residential Purchase Agreement and the Short Sale Addendum thoroughly with regard to cancellation. It is very clear on this point.
Also, the seller has to provide a Notice to Perform before they can cancel. A Notice to Perform could be providing proof of a loan application, loan approval, etc . Make sure that you re-confirm with the lender that you'll be able to get the loan based on your scores, job history, etc. or you may be out an appraisal and inspection fees if the short sale is approved. It seems these days that several lenders are promising rose gardens.
Also, the seller has to provide a Notice to Perform before they can cancel. A Notice to Perform could be providing proof of a loan application, loan approval, etc . Make sure that you re-confirm with the lender that you'll be able to get the loan based on your scores, job history, etc. or you may be out an appraisal and inspection fees if the short sale is approved. It seems these days that several lenders are promising rose gardens.
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