Skip to main content

Contract on Short Sale, 1st accepted, but now there's a 2nd

Buckeye, AZ |

I am not happy at all with the Listing Agent . I am the Buyer . He is literally holding us hostage knowing we want this house . He came back saying the first would not cover the $ 2900 in fee's and fines owed to the HOA and then suddenly there's a 2nd that he said they did not know about . I found it in RealtyTrac so he didn't look or try very hard when he took on the Listing . It's for only 15K with Desert Schools Federal Credit Union . My understanding is that even if this isn't a HAFA , which it does qualify for , the standards have been somewhat set . He made us sign a Counter from the Seller that we would pay a minimum of $ 3 , 000 . At first I was told that he would be offering $ 1500 . Now he claims he never said that . . . . $ 3000 is 20% of 1500 . Doesn't it seem a little high to start with ?

Matthew, I'm sorry but I did not ask or say anything about what the lenders ask. They haven't asked for anything. They are being offered something. What you said is obvious but again, not in any way an answer to my question. Thanks for your opinion but I would like an answer if anyone can comment on the question at hand I would appreciate it.

Attorney Answers 3

Posted

As has been pointed out, there is only one legal issue, which is that the lenders are not required to accept less than what they are owed in a short sale. The lenders are in fact holding you hostage if they know you want the house because they are trying to squeeze as much cash out of the transaction as possible before they accept the rest of the loss. As a buyer, you have very little legal standing to complain since the alternative is to be willing to take the house subject to any lien that has not been paid off. That is not to say that logic does not support the argument that asking for 20% of the 2nd to be paid is a significant percentage or that the listing agent is or is not doing a good job. The other option you have is to see if no one else will buy the house, it goes to foreclosure, and you try to buy it at the auction or from the first lender after the second lender and HOA liens are scraped off by the foreclosure.

Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. I am licensed in Arizona and can only provide general comments on matters outside of Arizona law. Actual legal advice can only be provided after a direct consultation in which all of the relevant facts are considered before providing a response.

Mark as helpful

1 found this helpful

1 lawyer agrees

4 comments

Asker

Posted

First off, sorry, I have searched so many sites in my research and, yes, I was asking a legal question but it's not an appropriate legal question. I was hoping someone would confirm that 20% is too much for the first offer. And Brandon you pretty much did. I know that I have no legal standing in regards to the banks. Maybe the correct question I should be asking is if I am not being properly represented by and Agent can I ask to have my agent on the deal? Risky of course but if I can then I maybe could figure out how to do it with less risk of loosing the deal all together. I had no way of knowing that my interests were going to be completely ignored. I guess what is making me upset is that the Listing Agent in the beginning was very nice and helpful, for about a week. Then he assigned a Buyers Agent from someone in his office. Did not include a Dual Agent agreement with the documents and when I had a question about this, remember, I was first told that we would and had offered $1500. Then two days later I am told not only that it wasn't done but also that he was refusing to make that offer.

Brandon Kavanagh

Brandon Kavanagh

Posted

You need to sit down with an attorney to look at what agreement terms you already have with the attempted dual-agent to see what you can do about changing representation. Sadly, you may need something said on attorney letterhead to get the appropriate response.

Asker

Posted

That is what I figured. It may be worth the money if things keep up like this. Then again, maybe the whole deal is going to follow through anyways. The maddening thing about it is that I can't even get a returned phone call... I thought about talking to the Broker. As it turns out they, the Broker, has a strike against them in 2006 for Dishonest Dealings and they were fined. I could use that against them...

Asker

Posted

That is fall through...

Posted

Only about 10% of short sales every actually make it to closing. Most of the time it has to do with a 2nd mortgage not playing ball or excessive fees from HOA's and property taxes that scuttle the deal. The bottom line, lenders don't have to accept short sales, doing so is entirely discretionary. You either pay what the lenders ask, or you don't get the home.

Mark as helpful

2 lawyers agree

2 comments

Asker

Posted

Per Community Guide lines: Originality counts Think before you post and stay on topic. " Answers that don't specifically address their questions will be removed, ".....

Matthew Scott Berkus

Matthew Scott Berkus

Posted

Well, if you actually asked a question, maybe that would help. The best I can get from what you wrote is that you want an opinion as to whether lawyers here think what your agent is offering is too high; the best answer you will get is "maybe", or "maybe not." After all, I doubt many contributors here are in the business of buying and selling real estate.

Posted

You are not asking a legal question. You are asking a real estate question regarding negotiation and nothing in your fact pattern raises any legal issues.

Please note that I am answering this question as a service through Avvo but not as your attorney and no attorney-client relationship is established by this posting. An attorney-client relationship can only be established through signing a Fee Agreement and paying the necessary advanced fees.

Mark as helpful

1 found this helpful

Real estate topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics