[quote=yellow8yellowm]Thanks for all the great advice…here are some responses to your questions, etc:
1. We are “kind of” calling their bluff. There is NO WAY we will let this issue lose us the house. All we have done at this point is ask the bank to reconsider their offer to pay up to $75 for the repairs (why not just offer $0?).
2. The banks still has not actually approved the sale. It has all been verbal at this point and even though we are in escrow there has been no paperwork from the bank saying that they have accepted the deal. Either way, it has been since mid July that we’ve been waiting since the seller’s signed the offer, took it off the MLS and started negotiating with the bank.
3. We are actually locked in for 60 days with Navy Federal (check out their rates!) for “free” so we have a few weeks to dilly dally before losing out on our great interest rate.[/quote]
Well this info actually changes how I would consider this transaction. My response to your points follows:
1: The 75$ is probably something the bank always offers so they can say they are covering the cost of inspection (which is often about that much). Asking them to reconsider is reasonable but may be have less merit than you realize (see below).
2: I feel that it was a bad idea to proceed with an escrow without lender approval. Currently there is not a regulation or rule (or really even a standard of practice I am aware of) on this, however, most short sale listing agents I have seen (myself included) will leave a property active until there is full bank approval. Again, sometimes the banks do not want to approve a short or for some reason cannot do so in a timely manner. If you have a deposit already in escrow, and you would not otherwise be using the money, then its not the end of the world. However, I think you should also be looking elsewhere as an alternative to an exercise in potential futility.
3: You should be consulting with other lending institutions and discussing the implications of the lock with the CU. If the lender takes 90 days to approve (a very real possibility) you may lose your lock or get a penalty for extending it.
Sorry to be a party pooper. I feel you should have information on this.
