Closing in two days, seller now hasn't approved offer

[nonewhouse]

What is the name of your state (only U.S. law)? Minnesota

My husband and I put an offer on a home at the end of November. Our offer was accepted accepted by the seller's agent December 4, 2008. We set a closing date for January 29, 2009. Today (January 27, 2009) I am informed by seller's agent that the property is a short sale, and the bank that holds the sellers mortgage has not yet approved the purchase price. We are not only not expected to close Thursday, we are not expected to close for 30 days best case scenario.

My agent did not know the property was a short sale, so he did not ask for proper documentation that the deal was smoothly transacting. We are currently renters and expected to vacate current rental property on Saturday January 31, 2009. All of our money is tied up in this deal. Even if we could find a couch to stay on, we need to put our belongings in a storage facility.

I understand mistakes can be made. However now I am left with nowhere to go and no money, and no new closing date in sight. Is the seller responsible?

[justalayman]

Don't confuse your contract with the seller with the sellers contract with their mortgage loan company. The seller is commited to the sale unless there is something in the contract that allows his recission for the short sale situation.

So, what do you do? Tell the seller his problem with selling the house for less than what he owes is between him and his loan company. He is still bound by the contract he signed. He needs to come up with the funds to close out the deal reagardless what his loan company is willing to accept. You are not a party to his short sale deal and his loan company does not have to approve of your deal with the seller. (Obviously that does throw a wrench into the works if the seller cannot come up with the funds to complete this transaction. though)

You need to be speaking with an attorney NOW! The seller, if he fails to close on the sale may be able to be held liable for your damages.

[HomeGuru]

Originally Posted by nonewhouse

What is the name of your state (only U.S. law)? Minnesota

My husband and I put an offer on a home at the end of November. Our offer was accepted accepted by the seller's agent December 4, 2008. We set a closing date for January 29, 2009. Today (January 27, 2009) I am informed by seller's agent that the property is a short sale, and the bank that holds the sellers mortgage has not yet approved the purchase price. We are not only not expected to close Thursday, we are not expected to close for 30 days best case scenario.

My agent did not know the property was a short sale, so he did not ask for proper documentation that the deal was smoothly transacting. We are currently renters and expected to vacate current rental property on Saturday January 31, 2009. All of our money is tied up in this deal. Even if we could find a couch to stay on, we need to put our belongings in a storage facility.

I understand mistakes can be made. However now I am left with nowhere to go and no money, and no new closing date in sight. Is the seller responsible?

**A: your agent and the seller's agent should have known about the short sale issue. And the info should have been stated on the contract and on the seller disclosure statement. Seller and both agents are responsible.