Do Buyer have recourse for an Bank of America approved short sale from prelim. HUD-1 that stopped?

Asked about 1 year ago - Orange, CA

The Title company shorted 25K on their prelim. HUD due to additional years back taxes. The bank is looking for a certain amount to them. They kicked it back wanting the additional 25K from us which is over appraisal.
We are 10 months in short sale. Our 1st Asset Mgr had 1st BPO & gave verbal OK to our agent at $110K. Then over the New Year BoA assigned a new AM who demanded another BPO. Our agent provided a 2nd higher BPO which he said was not arms length and demanded full appraisal. We provided Buyer-paid appraisal and they approved $125K purchase & on HUD-1. We went into escrow. Their closing department did not approve. Now they have assigned a 3rd Asset Manager who wants me-Buyer to give a higher offer. I think they are delaying so market keeps rising to get the price they want

Attorney answers (1)

  1. Edward Lewis Blum

    Pro

    Contributor Level 7

    Answered . The seller's lender has no contractual relationship with the buyer, and conditions its approval of a short sale on its willingness to accept a certain net amount. Most lenders do not want to lose an otherwise acceptable deal, and are willing to negotiate when surprise liens show up. Also the brokers are often willing to chip in to close the deal. You should make the effort to determine who is willing to help you close the gap if you really want the property

    Disclaimer: I am licensed in California only and my answers on Avvo assume California law. Answers provided by me... more

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