2008-07-22
Assuming that you've exhausted the option of getting a higher purchase price, can't wait any longer for a higher price, and don't have the funds to cover the shortfall:
I would begin by talking to your Mortgage Company/Bank. At the end of the day, if the house sale doesn't close and you begin to default on the payments, it's the Bank who will be dealing with the house (possibly even a foreclosure). If they have sufficient proof that the offer you are considering is the true fair market value, they may allow the sale to close, even with a shortfall.
If their mortgage is CMHC insured, insist that your Bank talk to CMHC. If there is an ultimate shortfall on the sale, it's CMHC who will be paying out the Bank and then looking to you to reimburse them. So CMHC may be motivated to allow you to close the sale. It will save them the costs of a foreclosure.
You could also talk to the realtor about their commission, although they have a contract with you and are entitled to the commission. But if the sale falls through, the realtor will lose the deal as well.
If you'd like to talk to someone about the specifics of your situation, don't hesitate to contact me or an MNP Trustee in your area.
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