Legal Question in Real Estate Law in California
I'm currently in Escrow on a short-sale property. The sellers have a 1st and 2nd loan on the home. The closing date was January 26, 2010, but the close has been delayed due to my Lender needing a 2nd Appraisal. The bank with the 2nd loan on the sellers home is requesting an additional $2000.00 because closing didn't happen on January 26th. Can the bank ask for an additional $2000.00? And is it legal?
2 Answers from Attorneys
You do not state whether the junior lien holder is part of the short sale or not. If it is not a party to the contract [because it is going to be wiped out by the sale] it can not dictate any terms to the parties]. If it is a party to the sale it can refuse to go through with the sale unless the $2,000 bribe is paid, but it should be paid by the first as it caused the delay.
They can 'ask' for anything they like, since neither you nor the seller can not force them to agree to the short sale, and they can get to determine the costs they must recover to make the deal. .
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