Home Buying in San Diego>Question Details

faith777771, Home Buyer in San Diego, CA

Can I as a buyer back out on a Short Sale for Bank of America?

Asked by faith777771, San Diego, CA Sat May 19, 2012

We have made an offer to a property and the Sellers agent told my agent that the Bank of Americal Short Sale approval is 45 days and takes another 45 days to close escrow. BA gave us a counter offer not to pay for the home warranty and hazard report which we have accepted and sign. Last night my agent told me to sign another Counter Offer from BA which I have refused to do so. My Agent told me that the escrow is now July 15 2012 and not May that he told us. We have asked our Apartment Manager to change our lease to month by month and we did it because we thought we will only pay an extra $115 for 2 or months, and we are now looking another 2 or 3 months before we get the Approval of Short Sale. I told my agent we are frustrated and disappointed but we can no longer afford to pay another extra $115 to pay for our rent. Can we backout on the offer which has not been approved yet by Bank of America and where can we get a form since my agent is not responding to my email

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0 votes Thank Flag Link Wed May 23, 2012

Talk to your agent again or her broker if she is not responding. Short sale can close up to 6 months and there are always one delay after another like the one you are experiencing. You may be able to get out but it all depends on what you have signed for the bank and every bank is different. You may seek legal advice but your agent should be your first stop.

Good luck!
Susie Kay, Dallas Realtor
United Real Estate
0 votes Thank Flag Link Tue May 22, 2012
Hi Faith,

If you re not getting the answers you need, call your agent's broker and talk to them. They are legally responsible for their agents and interested in you getting what you need.

Best of luck,

Mark & Kari Shea
Shea Real Estate
Serving Greater San Diego
0 votes Thank Flag Link Tue May 22, 2012
You can most likely back out with out any penalty at this point if you have not even signed the latest counter offer. But as others have posted, you really should ask your Realtor about it as they wrote your offer, and know the details of the contract more intimately than anyone on here would. Why is your agent not responding?

What I wonder is if you do back out of the transaction, how will that help you to get out of your current rental situation any faster?

I am primarily a mortgage lender, leaving Real Estate to my wife who is also a Realtor. If you do decide to go through with this transaction, I would be happy to help you with the financing portion of the transaction to make sure at least that part goes through as quickly and painlessly as possible.

Best of Luck!

Noah Newbegin
0 votes Thank Flag Link Sat May 19, 2012
Your agent should call back a client who's in the middle of negotiations ASAP or at the very least, the SAME business day. 24 hours could mean the different between missing a deadline and not missing a deadline. You can also ask your agent to prepare a Withdrawal of Offer if you plan on backing out before the default 45 days are up (your Short Sale Addendum may state another time period, so read that). But, like I said before, these are the things that will happen with short sales. The question is, do want a property enough to deal with the unexpected inconveniences that will come up?

One more thing that caught my attention. Your agent shouldn't be "telling" you to sign a counter offer. This is something that's very important, and changes many of the terms that you signed in the original purchase agreement. These terms should be be explained to you, and then you decide if you want to sign it. Keep in mind that all banks have their own counter offers, and some have their own purchase agreements. I'm wondering why your agent isn't explaining anything to you ...
0 votes Thank Flag Link Sat May 19, 2012

You should be able to cancel. If you can't reach the agent, try to get a hold of their broker.
When you leave messages for your agent, let them know first that you will be contacting their broker.
If you want to back out because you are frustrated, disappointed, and can't afford an extra 115 per month on your rent, you may want to sit down with your agent and see if these things can be worked out. When purchasing a short sale, it is and can be a long and frustrating journey. You have to "keep your eye on the prize" and if you still want the house at the price in the contract, you might want to try to stick it out. You can also call your escrow officer for a little help. They can't advise you on what to do, but they can help you get a hold of the realtor. Buyers need to be advised that purchasing a short sale is a long unpredictable process and the buyer must be patient and flexable in order to make it work.

Kevin Sanderlin
Keller Wiliams Realty
Cell 858-212-4702
0 votes Thank Flag Link Sat May 19, 2012
hi Faith,

Your Agent should return calls within 24 hours.
You need to sit down with your Agent and review the Residential Purchase Agreement. Usually on short sales, you sign a short sale addendum saying that you will not leave the process before 45 days. Once the bank approves the short sale (and there may be other junior lienholders that delay the process) the other clock starts ticking (Earnest money deposit, Appraisal, Physical Inspection, Loan Contingency).
Dealing with a short sale is extremely complicated when you are working with an inexperienced or part time agent. As you can see on the responses here, you have pretty knowledgeable folks here that can help you.

Hector R. Gastelum
Realty Executives Dillon
REALTOR #01382940
1019 Isabella,
Coronado, CA 92118
efax 619-270-2516
0 votes Thank Flag Link Sat May 19, 2012
Faith --

Sounds like you don't have full approval ... when there is no meeting of the minds, there is no contract. Plus, once there is an approval, and all sign the contract, you still have 17 days to approve everything. (Ask your agent about the 17 days right of discovery) There are several things in a contract you,as the buyer, can cancel over after the agreement is made, but time is of the essence!

In short, and a straight answer, from what you have written here, you can cancel and walk. Keep in mind, I have not seen your contract so there could be something in it I am not aware of that could change everything, but I doubt it...

Good luck with everything,

--Rod --
Powers HomeSelling Team
Serving San Diego Families for 30 Years!

0 votes Thank Flag Link Sat May 19, 2012
Hi Faith,

First, your agent would know if you are able to back out or not. Where is your agent?

Short sales are always unpredictable. When you're buying a new home, whether it be a short sale, bank owned or regular resale, it's not a bad thing to be on a month-to-month lease because it gives you more flexibility to close escrow and move in, but $115 can add up. It doesn't sound like you're under contract yet, since you never signed the counter offer. There's no agreement until all offers and counter offers are signed by both parties. But, you'll probably just encounter this sort of thing with another short sale property. And in some markets, short sales make up most of the market, so they may be hard to avoid.

If you don't know the answer to this question and you don't have your own agent, you're not in a position to do it on your own. Think about having your own buyer's agent. It won't cost you anything, and could probably save you money, if not a lot of stress. They work for you, not the bank, not the seller, for you. And, no you don't get a better deal when you work with the listing agent or the same brokerage. The listing agent or brokerage just gets double the commission. Where's the incentive to do a good job for you there?

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
0 votes Thank Flag Link Sat May 19, 2012
It depends on what your contract states. Read your contract and discuss your options with your agent. Since we are not privy to the status and details of the offer and contingencies any answer we give you is without knowledge.

You have an agent, allow them to do the job they are being paid to do. If you have doubts go to their Broker and ask.

In the meantime, short sales can be frustrating and if you desire to purchase and this is the property for you you may want to consider waiting. If $115 per month extra is not affordable, then how affordable is the property your are buying?

All the best to you.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Sat May 19, 2012
If you're already past the 45 day short sale approval deadline, you're free to walk away. Unless you've put in a deposit into escrow already, you really don't have to do anything. You will only be bound to the deal if you sign another extension.

But, as your agent should have mentioned, short sales can take a very long time. Your patience will be rewarded by a price discount worth $20-50K. So, it may be worth the extra $115 a month.

If your agent is not responding, you should consider a different agent.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Sat May 19, 2012
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