Question: Can a 3rd party, acting on behalf of a 2nd mortgagee prevent the closing of an approved Short Sale by refusing to accept the amount offered them by the 1st mortgagee?
Answer: – Yes they can… Many times mortgage companies will have 3rd party collection agencies deal with negotiating payoffs. If they don’t like the offer they don’t have to accept it. Sometimes they can very difficult to work with. They only way is to either give them what they want by handling it outside of closing or negotiate with them more until they decide to accept.
How best to handle a situation when the short sale process has began and the real estate agent, which has had the house listed for over 200 days, has now found a buyer. after doing all the work with the lender and the short sales package, what should i do? I have a signed purchase agreement, deed and all the other forms your’ve provided. I also have the completed short sales package which i will fedex / send to the lender today.
Drew,
This could be a very “sticky” situation. Any deal you work on, you should always find out if anyone else has been working with the seller. Any other investors, real estate agents, attorneys, etc. If there is a contract with the real estate agent, then if that house ever sells, they get a commission regardless if they did any work or not. So, I always like to ask them if they would release the listing or pay them a buy out fee if the short sale is successful before I ever negotiate with the bank.