I have a transaction in which the initial buyer was purchasing cash at $445K but ended up walking nearly days before closing due to an inspection concern.  I have since had the concern addressed by the HOA without cost to anyone (but the HOA) and now have a second buyer who is willing to pay the same amount, with same considerations except they have an agent.  the previous transaction I was the only agent (dual agency).

I have not canceled the other contract in play and we are merely behind on the close date, and I'd like to attempt to swap out the buyer for this new one.  Any experience doing this and any suggestions as to what to do.

 

I thought I'd go to the closing agent and ask her to bounce it back to a negotiator and at that point see if I can provide the new information on the new buyer and fast track it.  However I've not done this before and I wonder if anyone has any experience in this.

 

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I depends on the approval letter.  We've done it.  You have to make sure the approval letter does not have the buyer's name written in.  Many approval letters just state what they want to net, the deficiency, the commission and where to wire the money, so it can be done.  Call your title agent and check though.  Ours was able to do it and I was the only agent.  Same situation as you, only on the second buyer, I still was the only agent.

 

I think if the approval letter states the name of the buyer, you won't be able to do it.

Sadly, this approval letter specifically states Buyer #1s name.
Most approvals are buyer specific.  Send the new contract and HUD asap to the lender and have them update the approval

This approval is buyer specific.  Are you suggesting I send the new contract and HUD before I cancel the current transaction?  I thought I had to cancel before Equator would take another contract.  I'm not sure of sequence but am getting prepared to have all documents in hand.  Do you agree with Colleen below with the Aff of Arms Length to be completed and submitted with the other materials.  2nd buyer is not at all involved with seller or the other buyer, so it won't be a problem to get signed but will take time just administratively and I need this to move quickly : )

 

If you are submitting a new contract and HUD I would also include an arms length signed by all.  One of their concerns with a change in buyer is that there is something improper going on.
Do you submit the Aff of Arms Length on all our short sales up front?  I've never done that, but maybe it couldn't hurt.
Also make sure you send POF for their down payment and an approval letter from the buyer's lender. Most approvals, these days, are buyer specific and will have to go back to the negotiator to be underwritten.

This is why it is so important to make the buyer's complete inspections PRIOR to the end of the attorney review period. There is no reason they should have walked away due to inspection concerns days before close.

Good luck!

I agree Angela, it was unavoidable with the inspection items, because at the time of attorney review, there was a huge battle and quite a bit of unknowns.  It has been a contentious situation with the buyers that have my current approval.  Buyer #2 is a whole different story and the seller is in a whole different place.  This time we have negotiated waiver of inspections, this is a townhome and the buyer has many properties in the community.  I always try to get this done, as you are right - no sense in having this happen.  Sadly, I could not avoid this. 

 

You are right thought, the buyer approval is specific to this buyer, I double checked in the hopes that it wasn't - can't avoid hoping that it was not, but it is.  The deal is CASH, I have POF in hand, as this is a true investor purchaser with CASH monies looking to buy and hold long term with tenants. 

 

The buyers have a down payment due in 10 days, and I won't get proof of that escrow amount until it happens.  At this point, I got the POF for the total amount.  I assume this will do.

 

The biggest challenge is that the investor is in a rush to close, like most buyers - and I'm trying to move it forward as quick as possible.

 

Thanks for your help!

Will the commission change? and who is the lender? Does your approval letter have the buyers name on it? These items will make the difference in the answer :)

Sadly, yes - it was dual agency on Buyer #1 now with Buyer #2 it is a cooperative situation.  The lender is BOA on the first and Old Republic on the 2nd.  I don't have an issue with the 2nd moving quickly, I am in touch with the negotiator and already have her ready to review this 2nd offer, it's BOA that is the challenge.

 

I need to move this quickly, and have an approval in place.  Closing was approved for April 8th, and soon the transaction will close.  I have not resonded to BOA as of yet, as I am trying to figure out what to do.

Need to make a move in the next day, as the Buyer #2 contract has completed attorney review just today.

I have never seen an approval without a specific buyer's name and I have closed over 40 short sales. Because of the arms length rulings this is not possible without notifying the lien holder of the change. Often times it moves the process pretty quickly once an approval has been given but it still can take up to 2 weeks to complete. Best if you have a specific negotiator that you can communicate the change to. 

Hi Maria,

The file had moved from the negotiator to the closing agent and at this point, I have not canceled the last transaction.  I wanted to wait until I got this new buyer through attorney review.  Looks like we are clear with waiver of inspections too (whew) and I can submit again.  Can I ask the closing agent to send back to the negotiator and try that or do you think that I should cancel and resubmit and try to escalate to fast track it.

 

I'm not sure of the sequence and am afraid to cancel the other transaction before submitting the new one.  The offer is the same except we have two agents vs. one.

 

Any suggestions as to how to move forward?

Barbara

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