Expert: Karyn Foley - 12/3/2009

Question
I am 8 months into trying to buy a short sale home. The closing date was on or before Nov 30th. When my mortgage broker and real estate agent had "everything" set to close. Then the lender discovered that there was an addition that was put on without permits. So the said they would not lend the money until that issue was resolved. The selling agent never disclosed this to me and the inspector did not find this during his inspection. Now the selling agent says my deal is dead and he has another buyer, unless we get a clear to close by Dec. 7th. What can I do? I really want this house and have put a lot of time and energy into buying this place. Do I have any legal rights?  

Answer
Dear Troy:  Now you know why many people try to avoid short sales.  Those who are successful are prepared to go ahead anyway when they discover these issues, or to hold out indefinitely until a closing date really arrives.  Too many of these deals are problematical.  They can be a good find if the buyer can do a lot of the remedial work himself, or doesn't mind waiting until he has the means - or just doesn't care.  In response to your question, first of all I do not have a copy of your contract and cannot determine your rights that were mutually agreed upon by all parties.  Second of all, it sounds like they are trying to push you to move ahead; do you have proof there is another buyer.  Thirdly, and most importantly of all, is that you asked a legal questions.  Real estate brokers are not allowed to "practice law without a license", and this, plus my concern about not having the contract to refer to, tells me that you should ask this question instead to a lawyer, preferably a real estate lawyer.  You should also have your own agent giving you direction.  Many practices differ from state to state, so try to solicit advice from some one in your own state.  If you have good credit, sufficient down payment, and are ready, willing and able to consummate a transaction, I think you will find many good properties that have cooperative sellers who are prepared to negotiate a favorable price for you.  And, in a reasonable period of time, too.  Good luck.  If this online site does have legal personnel, try them.  If not, and you cannot get answers from a professional, it would be worth your money to invest in a session with a lawyer, not just for this deal, but so you will be more knowledgeable down the road if you are determined to go after a short sale.  Good luck to you, Karyn Foley