Question: An agreement of sale has been signed 6/27/09 by myself & the seller on their home that was a short sale at the time. I have jumped thru hoops with everything they wanted. NOW 2-1/2 months later while waiting for the seller’s bank’s approval on the offer , the seller is NOW working with their bank on a loan modification….IS THIS LEGAL? What about my rights since I have a signed Agreement of Sale. Please rush reply since I am really outraged!!. Thanks,
Answer: -Unfortunately that has always been the challenge working with homeowners in pre-foreclosure…you do a whole bunch of work helping the homeowner avoid foreclosure, work out a short sale deal with the bank and come to find out they’ve decided to back out and do something different. So basically you’ve wasted a bunch of time and money. Unfortunately there is not a lot you can do because you need the cooperation of the homeowner to get the short sale deal approved and pushed through. If they won’t cooperate with the bank, it’s difficult to get an acceptance. This is one of the biggest reasons why I always like to get the deed first. I may have to deed it back in order to get the short sale accepted but at least I have control of the property all the way through until closing.