short sal property being sold after bank approval

3 Replies

I completed a short sale application process with OCWEN and received final approval to closE. Before closing OCWEN sold the property to another bank. Is the purchasing bank legally required to go through with the short sale closing?

Well, they sold the loan, or servicing, not the house. I never had that but I would think so.  To be clear, you got a short sale Approval Letter for a Particular contract/buyer along with the approved closing statement and Net to the lender, closing by a certain date, right?

Originally posted by @Jesse Jaques:

I completed a short sale application process with OCWEN and received final approval to closE. Before closing OCWEN sold the property to another bank. Is the purchasing bank legally required to go through with the short sale closing?

 Jesse, OCWEN did not sell the property. They can't sell a house they don't legally own and they don't legally own a house until they foreclosed on the note which they can't do because they approved a shortsale with you.

In short, what OCWEN did  was sell the NOTE to another bank not the property.

Will the new bank be legally required to accept the shortsale? I am not an attorney but this will depend on how the shortsale agreement is written. My guess is, it's possible that new lender will agree to a shortsale specially if they acquired the note lower than the shortsale pay off. It's quick profit for them. However, most likely, OCWEN has given themselves an "out" in the shortsale agreement with you that their assigns (or buyer of the note) is not required to honor it.

So, unfortunately, you need to find out. 

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