QUESTION

reno shortsale

Asked on Jan 08th, 2013 on Real Estate - Nevada
More details to this question:
we as buyers went into contract as of April 2012 for a short sale in Spanish springs, Reno area. We feel the local bank holding the current mortgage is stalling and has increased the original price twice now , And currently want to yet again review the sellers assets. we feel we are being held hostage, We currently live in Washington sate but have been property owners in the Reno area since 2004. Is there anything we can do? As the longer the wait the higher they seem to raise the price on a contracted home.. of course reflecting current sales which are increasing..not to mention the interest rate
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2 ANSWERS

Real Estate Law Attorney serving Reno, NV at Hawley Troxell Ennis & Hawley LLP
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You have not named the lender.  If the lender is one of the "major" banks, it should be obligated to comply with the various "regulations" or "guidelines" that have come out under the Home Affordable Act and related "acts" that claim a lender must review a short sale within a short period of time (like 45 days).  However, practical experience has shown that this "regulations" simply aren't being followed and the lender can claim that it's in compliance because it's review showed that your offering price was too low per their standards, etc., and they always demand the seller provide updated financial if they get more than 3 months "stale" etc.  Whoever is negotiating the short sale (realtor? short sale branch of a title company?) can demand to talk to a supervisor about the status, which might get results.  You can file a complaint with the governmental regulatory entity that regulates the lender (varies with who the bank is).  Bottom line, as a very practical matter, I think there is little to be done about the slow short sale practice.
Answered on Jan 10th, 2013 at 12:47 PM

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R. Christopher Reade
The answers are answers which you are not going to probably like.  You have three (3) choices as Buyers in a short sale situation: (a) exercise your right in your Purchase Agreement to cancel the deal, walk away and go buy another property; (b) exercise your right in your Purchase Agreement to cancel the deal, walk away and do not go buy another property; or (c) continue to wait out the process in hopes that an acceptable deal can be reached between Seller, Seller's Lender and you.  Your situation is truly a disadvantageous one and not one which anybody but the patient and catatonic can stomach in hopes of obtaining a fantastic deal to reward the Buyers for the flexibility and patience which Short Sales often require.  Nonetheless the very nature of short sales is that they are triangulated processes which require the participation and approval of Seller's Lender for the sale to proceed.  One thing you might consider doing is having your real estate salesperson be in contact with the Lender's negotiator to try to keep everyone's feet to the fire.
Answered on Jan 09th, 2013 at 3:52 PM

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