It’s important that San Jose Real Estate agents who work with San Jose Short Sales understand the complexity of working with short sales. It is equally important that the escrow officer at the title company is also trained and highly proficient in working with short sales.
Many of the properties my buyers viewed were San Jose Short Sales. After several months of searching San Jose Homes for Sale, my buyers found a short sale that was placed back on the San Jose MLS. The property fit their home criteria perfectly. The kitchen was a little smaller than they ideally wanted, but they knew it was a home they could live in ... and they would be willing to wait out the short sale approval process. We quickly submitted a full price offer! The following is a summary of events:
- July 9, 2010 buyers offer submitted.
- July 10, 2010 Seller accepts offer.
- September 22, 1010 - San Jose short sale lender approvals received.
- Close of escrow scheduled for October 21, 2010.
- Property inspections, appraisals and all disclosures delivered and signed according to purchase agreement time lines.
- October 15, 2010 - Home Seller signed all documents at Old Republic Title Company.
- October 15, 2010 - San Jose Home Buyers signed loan docs at Old Republic Title. San Jose Real Estate agent, Kathleen Daniels and buyers lender were present.
- October 18, 2010 Buyers complete final walk-through of the property.
- October 18, 2010 Buyers wired over $100,000 in funds to close escrow.
- October 18, 2010 @ 3:11pm, Escrow Officer Rosa Avila sends an urgent email with the subject line: Delay in close of escrow.
Email message: IRS informed me today that they will not provide a release or any kind of written confirmation of release for their liens until approx. 11/30/10. I am currently contacting the short sale lenders to request an extension.
Background:
- The original preliminary title report dated 4/12/10 provided with seller disclosures did not show IRS tax liens.
- Two days before the close of escrow the agents learned about updated Prelims dated 7/1/2010 and 7/29/2010 which reflected Federal Tax Liens in the amount of $9,610.53 and $55,380.97.
- Old Republic Escrow Officer first contacted IRS regarding the lien on October 13, 2010.
- The Short Sale approval letters are contingent upon the transaction closing on or before October 29, 2010.
- Buyers interest rate lock of 4.125% expires on October 30, 2010.
In Santa Clara County Sellers (Listing Agents) typically choose the title and escrow company. The liability of a San Jose Real Estate agent selecting a title and escrow company that causes a short sale not close ... is huge.
The only reason this San Jose Short Sale did not close on October 21, 2010 is because the escrow officer at Old Republic Title Company was, shall we say, remiss in attending to her duties as an escrow officer.
- We have no guarantee of an extension of time to close the San Jose Short Sale.
- We have no guarantee of when the IRS tax lien will be released.
- Old Republic Title Company advises they "are working on it."
- Old Republic Title Company has not responded regarding a commitment to make my buyers whole if the lien is not releases and escrow does not close on or before October 29, 1010.
San Jose Real Estate agents must understand the importance of choosing a title and escrow company. All escrow officers are not trained and highly proficient in short sales. Failing to choose the right company may result in the reason San Jose Short Sales do not close; buyers and sellers are damaged; and after working 4-6 months do not receive their hard-earned and well deserved paycheck.
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