Quote:
Originally Posted by patrick101  Hi,
We're in the process of short sale of our home in CA and our loans (1st & 2nd) are non-recourse. My question is can a short sale be closed/completed without my signature? Can we still back out of the short sale deal? If we cancel during this process can my realtor or the buyer sue us? 
Thanks. |
Welcome to this forum,
Your question: My question is can a short sale be closed/completed without my signature?
-No.
Once the lender approved the short sale the negotiator will inform the seller's agent and the agent to inform the seller that the investor of the loan and the pmi company has approved the Short Sale. However the lender through the negotiator will give conditions of the Short Sale and will send you a letter with those conditions.
If the Short Sale goes through and escrow closes they will not pursue any deficiency judgement against you if it is a purchase money mortgage and never refianced. But it forecloes they will; It must be the buyer who made the offer and no substitution; they also will mention the sale sale and the seller will not get anything from the sale of the house;the transaction will be done by whoever is the title company, and whatever the terms of the Short Sale.
It should also specify in the letter that the buyer will be paying for the closing costs, they will the seller's agent a 5% commission, no closing costs to the seller.
Make sure that they put in writing that they will not pursue any deficiency judgment against you. They will give you 30-45 days to close the escrow, the title company will tell you where to go to sign the loan documents and will ask for your ID and have the loans documents notarized. Once all the papers was signed and notarized, the funds is being transferred to the lender, the documents signed and notarized is being sent to County Recorder. After 60 days the County Recorder's office will send you a Full Reconveyance letter stating the the property with address so and so has been paid in full or satisfied.
Your question: Can we still back out of the short sale deal? Why, did you have a second thought, are you planning to get loan modification.? You can but before you it make sure that, that's what you want. You have to learn to let go, you can not change one minute and change the next minute. If you have to be professional. Your agent works so hard in putting this together and to be frank with you, you are lucky that your Short Sale was approved. Again, that's the decision you and your husband has to make.
Your question: If we cancel during this process can my realtor or the buyer sue us? Yes and No, it depends on the contract. You need to read your contract, there's something written in the contract that if you back out, the buyer's deposit let's say is $5000, when you back out you have to give it back or what eer the contract says. There's an exclusive contract by your agent if you back out it's stgated in the contract how much percentage you are going to pay him. I have that in my contract and I did not know that my contract was exclusive, when I was trying to back out my agent told me that he will sue me for whaever amount specified in the contract. I prayed and thank God he asnwered, my buyer's backout and I just let the listing expired. I hired another agent and thank God I have a good agent and knows Short Sale. I have a successful Short Sale, thank God for Moe and this forum.
Whatever you do, think it over, let a day or two goes by, don't make a decision when you are angry, depressed or confuse. Let go and let God take over.
God bless you and take care.