Expert: Jay Denit - 1/25/2008

Question
Hi, I live in Colorado and have made a full-price offer on a short sale. It was accepted by the seller a month and a half ago. The listing agent then sent the offer to the lender for approval and told us to wait a few days for a response. Well, last week (10 days ago), the listing agent said we'd have an answer on that day. Nothing. Then this past Wednesday (two days ago), he said we'd have an answer that afternoon or the following morning (yesterday). Nothing. Now he won't answer the phone when our buyer broker calls and refuses to return messages. Also, when our buyer broker asked for contact information of the lender to get an idea of where they are in the process, the listing agent refused to give that information.

In a few conversations between our buyer broker and the listing agent, the listing agent has said that we are the highest offer and that there is another that's closer. However, when our lender called the listing agent for more details, the listing agent said there is another offer that matches ours and that both offers are $6,000 higher than our contract states. Two completely different stories. That makes me wonder about: a) the listing agent's integrity and professionalism (and stupidity) and b) whether or not we are even in the running and if we should be moving on.

Our contracted closing date is 6 days from now (1/31), and we haven't completed the loan process (though everything is in place to do so), hired an inspector, or started making plans for the move (if it takes place).

So less than a week to closing, I have some questions:

1) Our buyer broker says he's done everything he can to get things moving. Is there anything else we, the buyers, can do?
2) Is the listing agent required to give us the contact info for the lender?
3) At what point can we back out if we haven't heard from the lender?
4) If we did back out, would we get our earnest money back?
5) Obviously the listing agent is an idiot and a liar, but is there any way to get more information from him?

Answer
Hi Scott,

Sorry this has been such a mess for you! You do need to be patient with some banks.  I have had deals take 4 months to close because of the red tape of a lending institution.

To answer your questions:
1)Not much else you can really do.  The angrier you get the slower they will draw it out.  Kill them with kindness.  You broker can't physically force anyone to do their job, so he just needs to be persistent but not overbearing.

2) It's actually the reverse -- the agreement the list agent has with the lender is to NEVER give out that information.  The bank has hired him to represent them.

3&4) You need to have your broker read through the bank addendum's you signed carefully with regards to canceling offers and earnest money refunds.  Every REO shop has different contracts and stipulations.

5)Unfortunately, not really.  You can't circumvent the hired representation of the lender.

My best advice is to try and be patient.  I know it's hard, but if your broker had explained some of the possible pitfalls up front, it would have better prepared you for this situation.  Good luck