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?

UPDATED: Dec 5, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption