Should I agree with them? What about my Right of Disposition"- my right to “sell, rent or transfer ownership or use of the property at will”? Have any of you short sale magicians disregarded the lender’s command not to resell for 30 days? How would they find out and what if they did? Any thoughts? I’m mad!!
The seller does not have to sell to you. It’s the bank’s house, not yours and they can accept or reject your offer.
The easy solution is to hold for 30 days. That’s not much time to wait.
Get some sort of bridging loan for the 30 days.
The seller is the borrower who can’t afford the house any longer. The lender is, well, just the lender. Title goes from the borrower to me. The house becomes mine to do what I want with. Doesn’t it?
Title goes from the borrower to me
If the buyer owns the property th title would be transferrred to you. Otherwise, the title is held by the bank and you must satisfy their terms to clear it.
Most attornies believe it is not enforceable. However, the challenge is getting a title company to close the second transaction. Who is the lender?
We close most of our deals with one attorney and he doesn’t want to close the B-C transaction with the 30 day restriction (he’d know it was there), says to do it with another attorney, even though he thinks its not enforceable also. The lender we’ve had this come up with is… you guessed it- Bank of America!
I am so very surprised to hear it is the evil empire, Bank of America. Previously some were able to get it removed by having title/attorney say they cannot issue a title with restrictions into the future (title insures past events). What I am hearing is it is fairly unlikely for that to work now with BofA. Some other lenders have been willing to remove it with an offer of some additional cash. Might be worth trying - look at your fee difference for Transactional Funding versus hard money when considering what to offer.
Thanks Ted for the ideas! Neither had occurred to us so you’ve given us something new to try. Any thoughts on just ignoring the 30 day thing altogether?
The issue is finding the title company ok with it. Some may not pay attention to it, but some I think are just going to know that if it was a BofA short it will have the 30 day language. I have not looked for a title company, but again most lawyers do not think it is enforceable; so I expect that there are some who will close it. One issue that could arise is how long will it take BofA to release their lien.
A longer term answer is anyone involved with mortgages, or credit cards, do not give business to Bank of America so we do not have to deal with them in the future. I am so happy TARP bailed them out with our too big to fail mentality and they were able to raise their bonus pool from the prior year.