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Mpcamacho, Home Buyer in Tucson, AZ

I put on offer on a short sale that was going to close on the 14th of feb. The original buyers backed out , how does that work?

Asked by Mpcamacho, Tucson, AZ Fri Feb 4, 2011

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Where is your agent? If something was indeed supposed to close on the 14th, then indeed the lenders had approved the sale. However, if a new buy walks into the scene, it starts the whole thing over again....other than there is some assurance that the lender/lenders have agreed to the price or at least the price in the previous contract. YOU however are not approved as a buyer. Your credit worthiness is of utmost importance and verifying that may take some time. Is there an appraisal? If so and it is not an FHA appraisal, it may or may not have to be re-done for you and your lender as the buyer and lender.
This is why you need an agent representing you.
Bill Jones 520-907-2218
1 vote Thank Flag Link Fri Feb 4, 2011
Was your offer accepted as a back up offer? Did the lender agree to a short sale price before the original buyers backed out? If the lender did agree upon a short sale price and you do have an accepted back up offer, the Listing on the property should inform your agent of the status of your offer.
0 votes Thank Flag Link Sat Feb 5, 2011
Your agent should be checking to see if you were in a backup position. The bad news is that the process may have to start all over. There is no time to delay. If you do not have an agent we can get someone on it right away. The seller and the seller's lender(s) will need to be on top of this and their Realtor should be calling all backup offers. If you need help, just let us know and we can have an experienced agents get in touch with you right away. A buyer's agent represents you and costs you next to nothing. Good Luck.
0 votes Thank Flag Link Fri Feb 4, 2011
Mpcamacho,
If you are working with an agent he/she will provide you with all information. If you do not have an agent you need to get one immediately before you loose completely. The key question is: did the listing agent submit your offer to the bank? If he/she did not - bank does not know that you exist. If your offer was submitted, your agent has to make listing agent verify that lender/bank is looking at it - they often loose documents. Good luck!
George in Tucson
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0 votes Thank Flag Link Fri Feb 4, 2011
If you put an offer on the Short Sale, do you know if it was accepted as a "Back-up Offer". If so, then it is possible your contract will be accepted.

If it was not retained as a Back-up Offer, then you should resubmit the Purchase Contract as soon as possible.

I assume you are working with an agent; they should be able to help you in both cases.

Here is a link to Short Sale articles I have written; they are on our website under, "Buying Short Sales: The Good, The Bad and The Ugly". http://www.insidetucsonrealestate.com/buying_short_sales.html

Good Luck!


Rob Hallberg
Associate Broker, Long Realty
0 votes Thank Flag Link Fri Feb 4, 2011
Do you have an agent? If not, get one (as buyers it will cost you nothing to have an agent). I would need to know more before I can answer this, otherwise I would be guessing what to do (see some of the other responses for examples). Feel free to click on my profile here or on Zillow.com, give me a call or email if you would like to have a conversation regarding your options.

Best of luck.
Spirit Messingham
Tierra Antigua Realty
Tucson, AZ
0 votes Thank Flag Link Fri Feb 4, 2011
Your agent needs to get on top of this. I see situations where backup offers are ignored. It may not be right, but the squeaky wheel get the grease and if the foreclosure is looming, the seller will tend towards a cash offer to meet deadlines which a borrower might not be able to meet. Best of luck.
0 votes Thank Flag Link Fri Feb 4, 2011
It works just like any other short sale offer. You will have to make sure your agent knows the contracts needed. You should be able to close quicker but some lenders make you resubmit the whole package and the wait time is similar.. Either way you should be getting a great deal on your home.
Good luck,
Brad
0 votes Thank Flag Link Fri Feb 4, 2011
The process will begin again with your offer. However the wait time should be much shorter since the Bank has already agreed to a price for the previous buyer. I have closed shortsales with the above circumstance in 30 days. Your agent needs to make sure that you are next in line and hopefully they have written into the shortsale addendum some verbiage that protects you and allows the bank to negotiate only with you. Get your offer presented and submitted. If it meets the lender's requirements then it should not be long before your closing date.
0 votes Thank Flag Link Fri Feb 4, 2011
I think Bill gave you the best answer. You need to discuss this with your agent. Your offer will need to be reviewed and signed by the seller and submitted to the bank for approval. Hopefully the prior buyers' efforts will give you some advantage.
0 votes Thank Flag Link Fri Feb 4, 2011
Hi MP, The Seller's Agent has to submit your offer now to see if the bank will accept. It will take a few weeks to know if your offer will be accepted.


All the Best

Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Fri Feb 4, 2011
It should work out good for you since the short sale is already approved. You just need to get the bank all your information and it should close in about a month from when you submit it.
0 votes Thank Flag Link Fri Feb 4, 2011
I think that you need to ask a Real Estate attorney. I believe this is a legal contract and if it is agreed upon by the seller and most importantly by the servicing Bank, the sale will go forward.
0 votes Thank Flag Link Fri Feb 4, 2011
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