Mortgage loan sold that I have a contract on - short sale (real estate, approval)
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I was set to close on a house before the end of the month. I have a contract. Everything has been completed including underwriting. I am completely approved. The house was a short sale so it has been a nightmare (Bank of America). Now today, I was told that the loan was sold on December 15. Is there anything I can do sop that I don't have to start the process over. My lender is saying a new appraisal will have to be done. More paperwork. New underwriting. Any advice is appreciated.
Yes. Ask the new mortgage holder when they wish to close the short sale.
There is no way a judge is going to allow a bank to approve a short sale then sell the note out from under you . If you have a solid commitment letter from the lender, then the new lender will have to honor it.
This probably means the new lender will ship it back to BOA .
I think the question is......did Bank of America ever approve the short sale? If not, the loan is theirs to do as they wish. Personally, if it was never approved, I would walk away. The new bank isn't going to be prepared to push thru a short sale on a loan they just inherited - chances are BofA will have to buy it back. Do you know if the seller has been delinquent on the loan? If not, in the eyes of BofA, it's a performing loan and there is no reason they can't sell it to another bank. If you decide to stick it out, maybe the seller will pitch in for the new appraisal? Not every short sale has destitute sellers, just upside down sellers that can't bring 10's of 1000's to the table. They may be able to pitch in a few hundred dollars.
The Homeowner Forgiveness Act of 2007 expires the 31st of December. Any forgiven principal will now be taxable to the seller.......or the bank can hunt them down with a judgement.....(it could have been extended, but I haven't seen it). The average short sale from start to finish has been taking 8 - 10 months. When did you write your offer?
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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That is a problem. Your lender can only approve your loan, and the contract is only between you and the seller, If you don't have written approval of the sale from their lender they can sell the loan or they can require the full amount. One of the risks in buying a short sale.
That is the key guys. OP is making it seem they had a firm commitment from the lender. If the OP can produce this, they are due damages .
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