What are your rights when the bank tells you to short sale your rental properties and then tells you they will not look at any offers?
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What are your rights when the bank tells you to short sale your rental properties and then tells you they will not look at any offers?
We have 3 homes, until a month ago, we had tenants in the homes renting, the bank denied a loan re-modification and told us we cannot afford to keep the homes so we should short sale them. We listed the homes, 2 of the 3 tenants got scared and left. We received offers for the homes, the bank has denied them all. Up until a week ago, the bank told us the will no longer look at any offer until we, the sellers, decide what we are going to do. They are the ones who told us to sell the homes, now they want us to keep them? They said they can sue us? For what? What are our legal rights?
Asked on December 5, 2011 under Real Estate Law, Arizona
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you have several investment properties that you cannot continue servicing the debt loads on and your lender first suggested that you try and sell them as a short sale and then advises you later that they will no longer entertain any short sale offers, you are in a difficult situation.
I suggest that you consult with an expereinced real estate attorney to negotiate with the lending institutions you have about entertaining all short sale offers pending your retention of a lisitng agent to market the homes after the suggested real estate attorney advises you how to proceed. The problem with short sales is that the lenders are not required to approve any contrats which are subject to short sale approval.
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