Is the bank holding the seller hostage?
This one of the strangest things I've heard. I have borrowers who put in an offer on a short sale months ago. The seller accepted it and of course, it's been in the hands of the bank for months now. I phoned my borrowers agent earlier this morning to see if he had any update to the offer being accepted by the bank.
Here's the hold up. The bank is requiring the seller to sign a $15,000 Promissory Note, payable at closing. How in the heck does the bank think the seller is going to come up with $15,000, at closing? Naturally the sellers aren't going to net any proceeds since this is a short sale. Why doesn't the bank just counter the offer to increase the sales price by $15,000.
This all just seems nuts to me. If you've been involved in a similar situation, I'd love to hear how it got handled and resolved.
Have a great day!