Short Sale

DH and I are in contract on a short sale condo. The asking price was 299K & we offered 275K, which was accepted. The appraisal was done around February and was appraised for 400K. A few weeks ago, we received an addendum regarding the closing which was to take place around May 25th. I get a call today that the sellers bank wants more money, so our bank suggested offering 350K. DH said forget it, we can't afford it. Our DD has autism and has tested twice for high lead levels. Not to mention, we have to live in our current SD because of DD's school, so moving out of our area is out of the question. Also, my mother takes care of DD when she comes home from school while I work. This condo is really ideal because its lead free and meets all of our other requirements. I just don't understand that if our offer was too low, tell us at the get go instead of wasting months of people's energy. Or if the appraisal was done in February and came back so much higher tell us then that our offer was to low, not when we're ready to close in 3 weeks.

I'm so frustrated and sick over this. I'm at a loss.

Re: Short Sale

Do you have a signed contract? What does it say? What does your attorney say?

Re: Short Sale

The same exact thing happened to us! It was awful but we only had to go up another 25K. We did end up paying it because it was the only house in the area that we liked. The contract didn't matter at all because it was between us and the homeowners but since its a short sale, the bank has the final say. We were 4 months into the deal before we found out about the price increase and had moved out of our current apartment and moved in with my dad waiting to close so we didn't have many options. Good luck!!!

Re: Short Sale

Talk to your lawyer before doing anything.

We were in the same situation. We were going to meet there demands (6000 more) and once my lawyer found out, he was kinda pisses the sellers and buying agent were working this out.

Not sure what my lawyer did but he talked to certain people, found out a "bottom line price" with a formula of some sought. We ended up being perfectly good with our original number because the bank was satisfied with a percent of money coming and paying all the fees, etc..

Call your lawyer..i almost spent 6000 more for no reason. Let him run the numbers, get the notice that more money is required.

In your situation, you may be further so maybe the number doesn't need to be so high.

Re: Short Sale

This is the problem with short sales. I understand what you are feeling, we just closed on our short sale. We also had to go up on our contract price (by 10k). Just make sure to talk to your lawyer about it.

Re: Short Sale

Short Sale contracts are usually contingent on bank approval of the short sale. A short sale usually happens when the owners owe far much more than the home is worth. If the condo appraises for 400k, the bank would be silly to do a short sale for $275k. Frustrating, but I think I would move on.