Can A Bank Change The Price On A Short Sale After Accepting The Original Offer?
I like this post and I feel that it will provide some insite as the the Bank's thinking regarding short sales. They operate with a seperate set of rules. We have had guidelines that we have to follow for a long time.
This may help you.
Ginger of Southport
Can The Bank Change The Price On A Short Sale After Accepting The Original Offer?
What recourse does the client have if the bank changes it"s mind and changes the price?
Thisclient had already done the inspection, placed earnest money in escrow, and picked up the HOA package. The due diligence was done. The client is basically out that amount of money if the sale does not materialize. Banks do not give a long period for due diligence according to law it is usually 10 days after the contract is signed.
In a short sale a bank determines the short sale price. They are agreeing to sell the home short of the mortgage. or for less than what is owed to them.
Was the first approval in writing?
Whether you have recourse is a question you should ask an attorney. In my opinion it depends on whether the first approval was in writing. If the approval was in writing it's a good possibility that you may have recourse.
Did you agree to negotiate differences with the Seller before taking it to court?
If it was in writing and your contract says you agree to negotiate differences you may not go to court but agree to negotiate the terms of the contract.
Can the bank change the price on a short sale after accepting the original offer?
From experience the bank can and often does change the price when it is not in writing. On a short sale with Bank Of America, they did this to me. They gave us a verbal approval and the agent said she could not send it over to me. So my buyers and I went under the conclusion it was a done deal. The asset manager said to go forward with the appraisal and be ready to close. We did this. When the appraisal came in it came in at a higher price. They had not sent the approval in writing, so they raised the price on us. You have the final say as to whether you will accept it at the higher price or not.
Will you accept the property at a higher price, or not?
In the end, this is the question. If you will come up with the price, negotiate and go half way, or walk away. If you walk away, you will lose the money you paid for the inspection and the Hoa package. You could however, offer them to the listing agent to use fore the next buyer.
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