short sale issues

[poptart21]

What is the name of your state (only U.S. law)? Vermont
My family was looking into buying a fixer upper. We found one that was in our price range and had a reasonable amount of work required to fix it up. We used our realtor to contact the agent selling the home. We agreed on a price and and signed all the agreements and managed to get a loan for the home. We had a closing date set for late october of 08. It got pushed back once, then again. Meanwhile our realtor provided us with a key to the home (which was abandoned) and told us we should probably clean it up so that it would pass the mortgage companies inspection. We cleaned our trash and patched holes int he walls and put in a good amount of work prior to even closing on the home. The closing got pushed back again and we were told that the previous home owner had two loans and that the banks had to approve the sale, well that didnt happen. So we spent more time waiting while the realtors claimed tobe working with the banks to approve the sale. They told us that one of the banks wanted another $2000 dollars and there was no legal way for us to provide it and that it would be going into foreclosure (Now, 7 months later). We have put a lot of time and money into this home, yes i know stupid, but our realtor told us that it was a done deal and cleaning it up would help make things run more smoothly. I'm wondering if theres anything we can do about this, i.e. contact the banks and try to arrange something with them prior to it going to foreclosure, or contact a lawyer. Sorry for the length, but I tried to cram 7 months worth of information into this thread. Thanks in advance.

[HomeGuru]

Originally Posted by poptart21

What is the name of your state (only U.S. law)? Vermont
My family was looking into buying a fixer upper. We found one that was in our price range and had a reasonable amount of work required to fix it up. We used our realtor to contact the agent selling the home. We agreed on a price and and signed all the agreements and managed to get a loan for the home. We had a closing date set for late october of 08. It got pushed back once, then again. Meanwhile our realtor provided us with a key to the home (which was abandoned) and told us we should probably clean it up so that it would pass the mortgage companies inspection. We cleaned our trash and patched holes int he walls and put in a good amount of work prior to even closing on the home. The closing got pushed back again and we were told that the previous home owner had two loans and that the banks had to approve the sale, well that didnt happen. So we spent more time waiting while the realtors claimed tobe working with the banks to approve the sale. They told us that one of the banks wanted another $2000 dollars and there was no legal way for us to provide it and that it would be going into foreclosure (Now, 7 months later). We have put a lot of time and money into this home, yes i know stupid, but our realtor told us that it was a done deal and cleaning it up would help make things run more smoothly. I'm wondering if theres anything we can do about this, i.e. contact the banks and try to arrange something with them prior to it going to foreclosure, or contact a lawyer. Sorry for the length, but I tried to cram 7 months worth of information into this thread. Thanks in advance.

**A: talk to the direct lender.

[Who's Liable?]

Originally Posted by poptart21

What is the name of your state (only U.S. law)? Vermont
My family was looking into buying a fixer upper. We found one that was in our price range and had a reasonable amount of work required to fix it up. We used our realtor to contact the agent selling the home. We agreed on a price and and signed all the agreements and managed to get a loan for the home. We had a closing date set for late october of 08. It got pushed back once, then again. Meanwhile our realtor provided us with a key to the home (which was abandoned) and told us we should probably clean it up so that it would pass the mortgage companies inspection. We cleaned our trash and patched holes int he walls and put in a good amount of work prior to even closing on the home. The closing got pushed back again and we were told that the previous home owner had two loans and that the banks had to approve the sale, well that didnt happen. So we spent more time waiting while the realtors claimed tobe working with the banks to approve the sale. They told us that one of the banks wanted another $2000 dollars and there was no legal way for us to provide it and that it would be going into foreclosure (Now, 7 months later). We have put a lot of time and money into this home, yes i know stupid, but our realtor told us that it was a done deal and cleaning it up would help make things run more smoothly. I'm wondering if theres anything we can do about this, i.e. contact the banks and try to arrange something with them prior to it going to foreclosure, or contact a lawyer. Sorry for the length, but I tried to cram 7 months worth of information into this thread. Thanks in advance.

You need to FIRE your realtor.

NO realtor should give a key to a potential buyer, they are not only putting themselves and the company they represent into a legally liable situation, but they may have broken protocol by actually providing you means of access to the property.

Sale of any property is NOT FINAL UNTIL ACTUAL CLOSING PAPERS ARE SIGNED at the title companies office!

You are SOL on the money spent cleaning the place up. You may want to file a complaint against your realtor along with the company for their unethical behavior.

If the realtor denies giving you access, which most likely will happen should you pursue this, you can use the lock-box(knock-box) as evidence of her giving you access. Only liscenced realtor are given an access key to the lock box