So after many months of waiting the agent informed me that the bank finally approved my offer on a short sale. Just a few days before closing, the title company tells me that the bank hasn't okayed paying for the significant final water and sewer bills. Ideally the bank will decide to pay, but if they don't and my only option is pay or don't close -then what? I'd understood that everything was approved and ready to go. Is this something the agent should have been aware of?
Are you buying this to live in or an investment??
You need to look at the situation based on certain circumstances.
The approved offer on the short sale. Is this VERBAL or in WRITING??
If verbal you have nothing of substance really. If in writing generally they will provide a letter of release stating XX amount has to be paid to them from the proceeds at closing and the letter will usually be good for only 30 to 45 days and it expires if you do not close by that end date.
So there is the obligations you have to the seller and then the bank approving the loss on their loan. Are there any other junior lienholders on title?? Some places utility companies can lien a property for bills.
Short sales are complex. Might want to throw a few hundred at an attorney for counsel and review of your papers just to get some clarity.
The contracts signed generally say the brokers/agents are not experts relative to these matters so not likely you would collect anything or be able to find them at fault. They would simply point to the contract and say you are free to call on whatever expert you need to get your answers before closing etc.
No legal advice given.
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