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Replies (11)
- Robert Dandi, "BobRealEstate"
- Contributions:74
which state are you located in? what does your contract say? are you represented by an agent?
- athos1
- Contributions:5
CA
Classic CA contract
Yes
Classic CA contract
Yes
- Robert Dandi, "BobRealEstate"
- Contributions:74
I am more familiar with PA law being that is where I am located-generally, in PA, a contract can be voided by virtue of a clause which requires a seller to provide clear title to the buyer which by necessity requires all liens to be 'satisfied'. The liens can be satisfied with a short payoff letter or by being in full. If the titled seller cannot get the liens satisfied then the contract cannot be enforced. Since the Seller's bank/mortgage holder is not a party to the contract and by contract with the seller is owed a certain amount, the bank/mortgage holder is not required in any way to accept anything less than what they are owed. They cannot be compelled to accept anything less than their full payoff-so unless there is anything specific to the contract to the contrary suing them would appear to be an unfortunate waste of money.
- Karen Thompson, "kthomesdenver"
- Contributions:31
It all depends on what state you are in and how the contract and short sale addendum, if there was one, is written. In Colorado we have a short sale addendum that is part of the contract whereby either seller or buyer may cancel prior to lien holder(s) approval. After the lien holder(s) approve the short sale, that is a different story and not as easy to terminate without losing earnest money by the buyer. I do know that if the terms offered by the lien holder(s) are not acceptable to the seller, seller may terminate, as the contract from the beginning is on the seller and lien holder(s) coming to terms.
- athos1
- Contributions:5
So what is the solution? Wachovia have approved short sale and wants to sell, Listing and my buying agent want to close, My lenders are ready, liens on the property are "satisfied", I want the home BUT sellers are refusing to cooperate. Can sellers just walk away under contract? Can i get the house? If so , HOW?
THANKS in advance
THANKS in advance
- Renee M Keshishian, "reneek1"
- Contributions:93
My first question is why do they want to back out?
Second, I feel your pain. I too had a Seller, I was representing, who got cold feet. They backed out of the short sale when everything was approved.
Reality is... you are out time and money. If there is ground to force a sale, do you really want to invest more money and time into the pursuing this home? Unless you are a cash buyer, it is probably not a wise idea. Interest rates are extremely low. There are tons of deals out there. "Everything is on sale".
Second, I feel your pain. I too had a Seller, I was representing, who got cold feet. They backed out of the short sale when everything was approved.
Reality is... you are out time and money. If there is ground to force a sale, do you really want to invest more money and time into the pursuing this home? Unless you are a cash buyer, it is probably not a wise idea. Interest rates are extremely low. There are tons of deals out there. "Everything is on sale".
- Robert Dandi, "BobRealEstate"
- Contributions:74
My gut is that if Wachovia (Wells Fargo) approved the short sale then there sshould be no impediment to closing other than the seller's unwillingness to do so which would then be cause to sue for specific performance of the contract terms unless there are other circumstances unspoken here that could be cause not to go through with it. Good luck.
- athos1
- Contributions:5
But how can seller walk away after short sale approval, based on what ground? Aren't they under contract obligation?
- Robert Dandi, "BobRealEstate"
- Contributions:74
People can do what they want. To compel them to perform to the terms of the contract is what a suit for specific performance is. Review with a local attorney for a final answer. All the best.
- athos1
- Contributions:5
I think i got it! Thank you all for your fantastic feedback. Zillow community is the best!!!
- Pierre J Denis, "pierre33923007"
- Contributions:5
Hi Athos 1;
First you need to find out the specific reason why the seller is backing out and refusing to do anymore business with their current real estate agent.
In Short Sale situations, the approval letter from the lender will say that they reserve the right to come after the home owner for the remaining balance of the loan.
The real estate agent' s duty is to convaince the lender to eliminate the deficiency judgment if that is the hold up in this case.
It could be a waiste of time since the homeowners are supposed to be experiencing a hardship.
Hopefully, they are not filing for Bankruptcy
Maybe they will change their mind.
Good luck.
Sincerely,
Pierre J Denis/ Parkland Realty Group (Florida)
First you need to find out the specific reason why the seller is backing out and refusing to do anymore business with their current real estate agent.
In Short Sale situations, the approval letter from the lender will say that they reserve the right to come after the home owner for the remaining balance of the loan.
The real estate agent' s duty is to convaince the lender to eliminate the deficiency judgment if that is the hold up in this case.
It could be a waiste of time since the homeowners are supposed to be experiencing a hardship.
Hopefully, they are not filing for Bankruptcy
Maybe they will change their mind.
Good luck.
Sincerely,
Pierre J Denis/ Parkland Realty Group (Florida)
sellers in contract - short sale
I have signed Short sale contract and sellers in July 15 2011. I had to appraise property on negotiator request prior to signature since it was a condition to seller signature.
Wachovia approved short sale Sept 15 2011. I have performed inspection and appraisal shortly after approval. My loan is approved and process is well underway.
Today I hear from my agent that Sellers refuse to sign real estate disclosure documents and that sellers have requested cancelation of contract with their real estate listing agent.
I don't know what to do. I have already invested ~$1,000.00
Should I hire real estate attorney to force them to close the sale?
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