Orange County

[Octave]

I got an approval for a short sale. The original closing day was 1/29/2012.  Escrow was opened more than 3 weeks ago. The last two weeks, we've been waiting for the seller's lender to open the gates to the property so we can have the appraisal done but it did not happen. My appraiser called the listing agent several times and did not get a response so the appraisal was canceled. My agent said the listing agent has been trying to get the code (to open the gates) from the bank, Chase, in this case. Every time he asks their answer is "it's going to take a couple of days." How many more couple of days would we have to wait? I don't know. It seems strange. 

On top of this frustration, the rate lock on my loan will expire soon. The loan officer said there could be an extension charge. The listing agent told my agent she already requested an extension for the closing day to 2/15 but I have not seen the document.

Has this happened to anyone? Thanks.

[BobPhillips-RE]

Octave, months ago you indicated that you are in the $300-350k price range, so I assume you are referring here, to a gate which allows you entry to a gated community, not an individually gated house - is that correct?

If that is the case, there would usually be other listings in the community, ( Unless it is only 3 or 4 properties, behind the gate.)  so, hopefully, someone could find another way to gain access. ( Instructions are usually given to Realtors, about gate access in the MLS printout, although many of today's short sale listings are listed with people from "who knows where", that the seller found on the Internet, advertising themselves as a "short sale expert", when they are actually a short sale LISTING expert - big difference in the two.  It isn't unusual to find such a listing agent with more than 50 listings, scattered over multiple counties - doing the majority of their sellers a HUGE injustice.)

It sounds like SOMEBODY needs to be a bit more resourceful, here.

[Octave]

Hi Bob, 

No, it's actually a SFR home, not insde a gated community. I was talking about an individually gated house.

[BobPhillips-RE]

How did you get into the property, to see it, before making your offer?  Was it occupied, then?

It is the listing agent's, and/or the lender's responsibility, to provide access for your appraiser.  

How long did it take for the lender to approve and accept your offer?

[Octave]

The listing agent came by with a key to open the front door for us to see the property. It was not occupied. Now, they said they needed the bank authorization and code to open the gates. I believe there's a lock box now. 

It took them about 2 months to accept my  offer. It's almost the same stuff. The listing agent said it would be approved in two weeks and 2 weeks went by with no news, so we checked back and they said another two weeks. After many "2 weeks" the bank finally approved it. 

I'm not sure what's going on now. Can they cancel my offer and sell the property to somebody esle? My agent said no and they could be sued for that, but I can't think of another reason why they would not provide us access to the property.

[BobPhillips-RE]

Has the listing agent provided you with a WRITTEN approval/acceptance of your offer, from the lender.

Did you open escrow - giving them your earnest money deposit - before or after receiving that approval/acceptance?

This should be the listing agent's responsibility.  

Has YOUR agent looked in the MLS printout, to see if the code might be there?

( It usually is, in the agent's remarks, which the public usually doesn't have access to.)

[Octave]

Yes, the listing agent provided me a written approval from the lender. I deposited my earnest money after the approval. I don't know if my agent has looked for the code in the MLS. I'll ask him.

Thank you.

[BobPhillips-RE]

You might also look on that approval letter for someone's name to send a letter to, or make a call to, to complain directly, about your dilemma.

Good luck.