The lenders won’t sign paperwork for short sale.
I’m in the process of buying a home in Wayland on a short sale. The asking price had already been approved by the seller’s lenders, I offered it, and the lenders accepted. Now it’s been over 3 weeks and we can’t seem to get the lenders to return the signed paperwork so we can set yet another closing date. The house will go into foreclosure in about 2 weeks. What can we do?
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Lender delays in processing and approving short sales is the rule and no longer the exception. The lenders also require that their purchase and sale form agreement be used and they accept few, if any, requested buyer changes to provide a balanced and fair agreement. And if the lender does not countersign the purchase agreement, the prospective buyer has no recourse. The one sided purchase agreements, even if signed by the lenders, offer little if any remuneration in the event that the sale does not occur. Finally, a buyer must be very careful to have counsel closely review the underlying title because sellers looking to conduct a short sale have amassed excessive debt and liens on their properties, all of which must be discharged prior or at closing with closing proceeds, to ensure a good and marketable title. Buyer beware in short sales!
