I am not a Real Estate Attorney, Nor am I Trying to Give Real Estate Legal Advice of ANY kind, I am a Real Estate Broker Owner and Giving you my “Opinion” based on my Real Estate Experience as a Real Estate Broker Owner.
Question Asked: the Question is in Blue and My Thoughts on it are in Black.
“I am the buyer in this case and what i'm dealing WITH IS MOST DISTURBING .
the realtor who listed the property misrepresented the listing, it was only four days old and wasn't described as a short sale.
I am not sure that Realtors have to disclose it as a Short Sale. Though your Realtors should disclose all known facts. I would say offer what you want and see if the Seller takes it, if the Seller is a bank or a Homeowner they will either take it or not. I don't see alot of ads that describe properties as 'Short Sales', not in my area. I see buyers simply make an offer, when the offer is less then the Loan it is, of course a Short Sale, however not sure on the Legal Requirements of Disclosing this Known Fact.
We were informed at the time of signing, after we signed, (our realtor called the listing agent to inform him that she had a signed contract), that the bank probably would't agree because of the bank instructions they would only accept a certain $ amount.
A buyer's agent would not know if there was information in the Listing Agent's file that said a bank would only accept a certain amount. This usually comes up when an offer is presented, because Realtors don't often communicate to well with each other. The Buyer's agent should have had this conversation before wasting the Buyers time or getting the buyer excited about the property. However, I don't believe it is "illegal" or really even unEthical at this point, it is just oversight.
The offer was submitted and the seller agreed but the listing agent said the bank wouldn't accept this offer and wanted the money offer increased. We said OK and resigned.
See now at this point many things can and do happen, the Listing Agent could be Lying. They may do this because they have a buyer that wants the property for CHEAP and then will re-list or profit share with the listing agent. It could be that the listing agent wants to buy the property or has family that wants to buy the property. Many times a listing agent will make stuff up to get a buyer to "Give Up" and the "Agendas" are far from Fair and Ethical.
If the Seller agreed then the Seller needs to sign the Offer. If the Bank really did refuse the deal well then You the Buyer need to Request this in writing from the bank and signed by the Seller as well. The Realtor CANNOT just say the bank won't take this. This is a way of spooking you from the deal for ulterior motives.
Then we were informed that the bank was going to auction the following friday, seven days from the signing. the seller "I was told" filed for Bankruptcy the day before the auction, which delayed the auction.
I didn't believe this, however the listing agent said he would try to get the short sale extended. Our realtor than said to get things going, that way when she hears from the listing agent we would be ready to proceed.
Yes you want to be ready and have your financing under way. It does sound believable that a Seller would file bankruptcy to buy time. This does not mean that a bank would not take a short sale. However to negotiate a Short Sale takes finess and many Realtors in this market just don't get it.
Two weeks later after the listing agent got back from his honeymoon, he informed our realtor that he got a new extension, from the lender.
We now had a gfe and were ready to close, upon informing our realtor that we were ready, i received the following response, "Seller doesn't want to sell they want to stay in house and live there for free but will sell to you in six months",
Well there is not much you can do with this, the Seller has Legal rights during foreclosure and the banks have to act within those rights and within the State Laws that apply. Many Sellers are choosing to stay rent free until they lose everything. They do this to gain a little ground financially before moving on. It is their only hope in this market collapse that was created from False Home values created by Lenders, Appraisers, Realtors and Mortgage Brokers...
I contacted the bank(their) and sent all the E-mails showing the deception on the part of the sellers and noting they were stalling. the bank requested our loan number and my authorization in the matter and were waiting for a response.
In the mean time I received a recission agreement form which I did not sign and sent to the bank, showing that the sellers want this delay.
Well I would not sign that, this could also be a trick where the Realtor is involved, and want to get another buyer in ahead of you. The Realtor often controls the Seller and this may be a way to get you out of the process, hard to prove though. If you want it, just stay in first place and wait it out.
we are not investors, we just want to move and were willing to meet all conditions.
Do I have any recourse?"
I would say you have No Recourse, though sad it seems all within the law. It is hard enough to have any kind of recourse in the face of Blatant Proven fraud on the Part of Realtors and Sellers, this is, well just an obstacle.. I say wait for the deal or move on RECOURSE attempts on this particular scenerio, well it will just cause you stress and tons of money....
My opinion... Walk Away... the Seller is in Severe distress
and is simply fighting for their life here...
Crystal L. Cox
Broker Owner
Real Estate Consulting
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