Legal Question in Real Estate Law in Pennsylvania

We put a bid on a short sale house in November, which was delayed and finally accepted in March of this year. We had a settlement date scheduled for June 20 - On June 16 my realtor called and said that Freddie Mac has changed the terms of the loan, namely, the purchase price to $6,100 higher. Can they legally change the terms of our signed loan agreement like that?


Asked on 6/19/11, 6:59 am

1 Answer from Attorneys

Miriam Jacobson Retired from practice of law

Short sales require the acceptance by the lender, not just the seller. If the lender approved the short sale but did not have the consent of Freddie Mac, the sale may not have been fully approved. Loans that are insured by Freddie Mac probably also need the consent and approval of that company.

The "increase" in the price may mean that the sale would not be approved unless it were for an amount $6,100 more than the amount that you offered.

The realtor should have been more familiar with short sales and advising you accordingly.

Consult a lawyer with experience in these types of sales.

This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.

Read more
Answered on 6/19/11, 8:19 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Pennsylvania