Consult Real Estate Attorney in Short Sale

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Dear Sue,

My home has been in escrow on a short sale for six long months. The first lender has approved the terms of the short sale but the second lender wants more money than the first lender is willing to give them in order to release us from the obligation.

I heard that the second lender, Bank of America, is one of the most difficult lenders on the planet to deal with. I don’t have much time to get them to budge because my house is due to be auctioned on the courthouse steps in just one week!

My Realtor said that it would be better for my credit to do a short sale than to have a foreclosure. I looked it up on-line and she’s right!

What can I do to get them moving on this?

Desperate Dan

Dear Dan,

Whatever you do, don’t give up. Have the file elevated to a supervisor. Have your agent do whatever they can to get the second lender to come to an agreement.

If you don’t have the extra funds, see if the buyer can contribute more cash that can be paid to the second. Are you willing to sign a note for the benefit of the second lender?

Some short sales have taken six or seven months to close and some have taken even longer. Some don’t close at all. However, many lenders along with Government assistance are working to streamline the process.

Unfortunately for you BofA has been left with a reputation for being very difficult to work with.

If you find that you are running out of time consult your real estate attorney. Discuss your options. It will be a matter of good home dollars and sense.