Skip to main content

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

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

+ Read More

Attorney answers 1


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 are for general information only. They are not legal advice, as competent advice requires an attorney's personal review of facts and documents that govern this situation and that are not provided as part of this AVVO service. Accordingly, you should only rely on counsel who has undertaken a full review of the applicable documents and facts. This forum does not allow for that level of due diligence. I provide legal advice during the course of an attorney-client relationship only. The exchange of information through this forum does not establish such a relationship. That relationship is established only by personal and direct consultation with me followed by the execution of a written attorney-client agreement signed by each of us. The communications on this website are not privileged or confidential and I assume no duty to anyone by my participation on Avvo or because I have answered or commented on a question. All legal proceedings involve deadlines and time limiting statutes. So that legal rights are not lost for failure to timely take appropriate action and because I do not provide legal advice in answer to any question, if you are an interested party you should promptly and personally consult with an attorney for legal advice. Also, see Avvo's terms and conditions of use, specifically item 9, incorporated by this reference

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