Home Buying in 12144>Question Details

Lynn, Home Buyer in 12144

Can I end my contract to purchase a short sale?

Asked by Lynn, 12144 Mon Mar 22, 2010

In July 2009, I entered a contract to purchase a short sale property. In the contract, I had a clause that stated if short sale approval was not obtained by the bank within 90 days, I had the right to get my deposit back and walk away. The deadline was extended once, by another 90 days. Two days before the 90-day extension was up, the sellers' lender countered our offer and we were able to agree on a sale price. One month later, the bank still has not received written approval for the short sale. I'm beginning to think the counter-offer was just a ploy to keep me on the hook, as there has been no activity since we agreed on a new price. Can I still get out of the contract since the bank has not yet obtained short sale approval?

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3
Anna Brocco’s answer
If the contract is still in effect, you really can't do anything until it expires--press your attorney for straight answers, after all that's what you are paying him for and you are the client--without knowing exactly what the contract states, your question can't really be answered with accuracy--again press your attorney and review the contract yourself as well--then make a determination.
1 vote Thank Flag Link Mon Mar 22, 2010
Unfortunately my attorney won't give a straight answer. I would think that the contract clause is still in effect regardless of coming to agreement on a new price, since the sellers' bank still hasn't held up their end of the deal. When I agreed to a different sales price, none of the other clauses were modified. If I'm not let out of the the contract, how many more months could I be on the hook to wait for the bank to secure approval? That was the whole point of establishing a deadline - to limit how long I would be stuck in limbo. :(
1 vote Thank Flag Link Mon Mar 22, 2010
Not knowing all the details in your contract, your best source of information at this point is your attorney-- he/she knows all the details--protect yourself and contact him/her and see what options you may have at this point.
1 vote Thank Flag Link Mon Mar 22, 2010
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