Expert: Dick Dennis - 9/26/2009

Question
My husband and I are purchasing a short sale home in Florida that is still owner occupied. We are confused because we are under contract with a close date of Oct. 30 and the bank refuses to stop showing the home as well as put it under pending status. The current owner also is claiming that they are not able to find an apartment until Nov. 15, and either wants to stay until then or leave there belongings until that date while they stay with a relative. What can we do? Our deposit for the home has been cashed by the title company, the owner's realtor says that they are packing. The problem is that when we speak to owner they say there is no way that they will be able to be out by that time and they will have to be evicted. Neither the realtor nor the bank want to address this issue. Please help.

Answer
Keep this in mind, Bernice: Banks are not Realtors and have no idea how to treat buyers and sellers. All they know is that they want MORE money when they are selling a house through short sale and any other way. They are hoping someone will make a better offer than you did. They have no idea under what code of ethics and rules Realtors adhere to. Therefore, that is the reason why they still are authorizing the house to be still shown. Your Realtor is rather a weak-kneed individual. He/she is afraid of losing the commission, so they are hoping you will simmer down and go along with the punches. Your Realtor really should have let you know in advance what to expect.

You have two choices: 1. If the house is not closed by Oct 30, demand your deposit returned FROM THE REALTOR or the title company if that is who you wrote the check to. Trouble is, of course, is the lender who is making the loan to buy the house may get a little peeved in all this if you do cancel the deal. And then go looking for another house WITH ANOTHER REALTOR.  2. Go along with the punches and change your personal schedule to allow the seller to move. After all, they are losing money in this. A short-sale transaction is not a normal deal and it appears the agent and the seller's lender have no idea how to act in this transaction. Also, be aware that there are many people in court because of how the banks are acting in short-sale transactions. I do wish you well.

Dick Dennis