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Found a place to buy. When I made an offer on the house it was pulled from the market. The owner’s mortgage is about 50k over asking price. He has the money to cover the difference but his other 2 partners do not.

He is unsure of ways we could proceed. Other than contacting a bank for a shortsale (my idea) I can’t think of any. But with him and his partners making payments, would the bank even consider a short sale?

Any ideas on what could be done to overcome this roadblock?

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If they are not late on the payments, the bank will not likely consider a short sale. Even if they did, be prepared to wait up to 6 months to hear back from the bank.

Maybe the owner could do one of those government underwater mortgage refinances?
I don't really know the details or what that entails if it's a legitimate thing.

Sounds fishy, something like you will end up paying the 50k out of OP pocket.
Just move on.

welookgoodcom said:   Found a place to buy. When I made an offer on the house it was pulled from the market. The owner’s mortgage is about 50k over asking price. He has the money to cover the difference but his other 2 partners do not.

He is unsure of ways we could proceed. Other than contacting a bank for a shortsale (my idea) I can’t think of any. But with him and his partners making payments, would the bank even consider a short sale?

Any ideas on what could be done to overcome this roadblock?


Either he/they can come up with the 50k so that you can proceed or they can't, in which case you should just move on.

Partners can get personal loans to cover the difference. He could cover the 50. He could loan money to his partners. You could pay the 50. You could offer to pay part of the 50. You could loan the other partners (ha, bad idea)

Just to clarify, he has the money to cover the ENTIRE $50k or only his 1/3 of it like $17k?

his portion (1/3 of it, which would be around 17k).

Thank you so much for all the helpful advice! Will move on to look at other houses

scrouds said:   Partners can get personal loans to cover the difference. He could cover the 50. He could loan money to his partners. You could pay the 50. You could offer to pay part of the 50. You could loan the other partners (ha, bad idea)

^^^^

Bold = acceptable options for them to fix it with no problems on your end.

Why is this your problem? The fact that the seller is making it your problem sounds fishy. Move on, after getting your money back if you put anything into it.

You have a signed offer? And there's no mention of a short sale? Tell him you're going to sue him for specific performance. The fact that he doesn't have the money to close isn't really your problem, he should have known that when he accepted your offer. A short sale only gets approved if there's a good reason for it, just because he needs to come up with 50k doesn't make it a good reason, especially if he has the money and doesn't want to pay it. They usually want financial statements that says he can't make the mortgage and that he can't afford to come up with the difference. If that's not the case here, no chance at a short sale. At the very least, if you just decide to get your money back, have the seller at least pay for the home inspection if in fact you did do one so that you're made whole.

This may be a ploy to get out of the deal because one of the partners thinks the selling price isn't good enough. If you want to play hardball, and you have a signed agreement of sale, you can sue him. Also, if he sells it later for more money, you can sue him for loss of bargain.

I was in a deal where the seller signed the agreement and then wanted more money, and got an attorney to twist my arm. I said go ahead, sell it for more, I'll sue you for the difference. Eventually the deal closed as agreed upon. It is a matter of how much aggravation you want to put up with, and if you have the time to wait it out.



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