My Short Sale is approved for the third time...now the sellers backed out!

My Short Sale is approved for the third time...now the sellers backed out!

It seems like I'm always putting out fires but I guess that's the business we choose.

You might ask how this is possible? I had this short sale that I've worked on for probably 7 months. The first two times the bank approved the deal in writing but both times the buyers couldn't get qualified. We were told twice that the buyers were approved by their lender and even showed proof of funds but they still couldn't get it closed....that's another story.

This time we get another buyer and throughout the process I felt pretty confident that this one would make it. The Realtor and the buyer and the lender were all willing to cooperate and supply any updates to us.

We were told by the lender that we would get the approval within 4-5 weeks which we did. And then the nightmare started. This transaction was an FHA loan and the seller needed to execute a required document that I had sent after the contract was executed. I was calling them almost everyday letting them know that the lender required it back fully executed but my clients (The Sellers) weren't returning my calls!

That got me a bit concerned but I kept trying. Maybe there was a family emergency and someone was sick or maybe someone even died and I figured they just didn't want to deal with it so I waited another week. I finally was anticipating the approval any day so I picked up the phone on a Saturday and blocked my phone number just to see if they were avoiding me. Well of course when I called...they picked up the call!

It turns out that they've decided to file bankruptcy because they are worried about the tax implications. They said they don't fall under the law that usually protects you if that property is their primary home.

They had originally lived there for 2-3 yrs yet they feel they don't fall under those dates. As of a week ago.... the buyers are now going to take legal action and sue for specific performance. I doubt they'll win...after all....the first lien holder gets anything awarded and if there's anything left .....it probably won't be much of anything. They want to close and they're ready.....willing and able.

I'm not sure what type of legal advice they're getting but I just hope they know what they're doing.

For more information please contact Neal The Real Deal Bloom-Realtor® /Keller Williams Properties

1625 N. Commerce Parkway,Suite 105

Weston FL 33326

(954)608-5556

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