any advisement regards using a real estate attorney to negociate with property "negociator" who holds the reigns on a short sale? i want them to accept a purchase contract w/ loan funding instead of cash only.

i have been chasing a house for 10 months in california. short sale w/ 2 lien holders (wells fargo and chase). American Servicing Company (ASC) is wells fargo's loan servicing company and the negociator for the house. my bid last august had a large down (> 30%) and preapproved loan, and in march the bank was willing to accept my price but said cash only. it has been postponed at auction since october about 9 times.

my broker has tried as i have numerous approaches with the listing agent. the listing agent informs there is nothing that can be done, the controlling party insists on cash.

the house was on mls for 10 months, then for 3 weeks for $60k less and cash only. then it was pulled; "hold, do not show".

perhaps a real estate attorney can do better? any idea on cost of these services and whether this type of service is done on contingency?

The only requirement with cash is if the bank believes the condition of the property is in a state where financing won't be obtained or the lender will ask the bank to make repairs and they are not willing to do that.

In that case you need to move on to another property or find the cash.

They could get a 203K loan if the property is in that bad condition.

the house is in perfect condition, or "turnkey" as is usually described.

i have speculated that the negotiator has only so many people to handle so many properties and so a general guideline of reconsidering a property only so often (once every so many months perhaps) for any modification of sale requirements. and a cash only requirement would eliminate the possibility of an escrow falling out due to a purchaser's funding bank's interference.

and on a side note, a cash only requirement would also significantly reduce the quantity demand, that is, shrink its potential market by making the house unavailable to anyone who would buy it w/ a loan, like me. and thus it follows that a reduction in quantity demand would reduce the effective price. which means at current price it is overvalued and thus the bank has now become a non-serious seller.

if the value of a house is in part created by the demand for it (which it is as is exampled by prices in manhattan and san francisco) then the demand is created in part by the market's ability to buy the house on credit. the latter would increase quantity demand by making the house more accessable to a wider market, thus the price of the house would go up. so it would follow that the price of the house would go down if the ability to buy it on credit were removed.

i could buy it cash at about 9% less than would now be the current close of escrow cost.

Regardless of your reasoning the bank is the seller and they want cash.