Legal Question in Real Estate Law in Utah
What is taking so long on this short sale?
My wife and I currently have an offer on a house for sale in a short sale and have not heard a thing from the bank. It has been a month and a half since we put in our full-price offer (July 9). The family living there moved out 2-3 months ago and a Notice of Default and Election to sale was filed on July 13. Last week (August 2) the house was winterized and all locks were changed, and all gates chained shut. The listing agent says the person at the bank says that they are working on it, so what is the hold up? I would think that they would sell the house as soon as possible, especially for full price. The original loan was for $191K 5 years ago. The list price is $181K- and can't be far from the actual amount owed. I called the trustee attorney who said that the bank can't forclose until 3 months after the Notice of Default was filed. Does the bank have to foreclose to sell it now, and what would their reasoning be for not selling it at this point? What do they need from the owners to sell it and why are they taking so long? Our offer has been extended 3 times and will be again until we get the house. What is the problem!!!? (I did an abstract title search to get most of the house info.)
1 Answer from Attorneys
Re: What is taking so long on this short sale?
The bank is not required to respond to your offer of a sale. They may be waiting to see if the former owners will file bankruptcy, or may need a release from them. You may want to wait for the foreclosure to go through, which would clear the title to any other claims.
You may also want to contact the former owners and get a release from them. So long as the former owners still have an interest in the house, the bank cannot sell the house. So the bank has to wait for a release or foreclosure.
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