If you don't want the house anymore, you need to sign a cancellation of contract and have your deposit released from escrow. I would not waste time or mess around with the bank, in some cases they can take your deposit if you wait too long.
In reading your comments, I am not sure what you are trying to say. I do know that if your purchasing the property and the short sale has NOT been approved by the lien holder(s) of the note, then you should not be doing anything in regards to inspections or repairs as this could be a waste of your time and money. ONLY when you see an approval from the lien holder(s) accepting all the terms and conditions of your offer and the sellers request for Short Sale, is when you would start the process of inspections. If do not want the home and you have not seen an approval letter yet, then you can back out at any time and get your $7K back. Also, you should have 17 days from the date of the Approval letter to also back out with no issues as per the normal purchase contract states.
Good luck and hopefully this answered your question.
I'm not sure why you obtained possession unless you secured a rental agreement on the property prior to the sale completing? You say you had an inspection and you paid for repairs on a house that you didn't own?
Your right to receiving your deposit back is defined in your CA purchase agreement. That agreement does not even begin to execute until the lender approves the short sale, and assuming that there was a short sale addendum signed.
I don't understand where you are in your process, but I'd suggest you have your realtor and their broker help you understand. Then I'd contact an attorney for some very valuable legal guidance. It doesn't sound like you understand where you are in your contracts.
I'm trying to understand your situation. To answer your first question, it depends. Lately, most short sales I complete happen wihtin 60-90 days. However, I have had some close sooner and some much, much later (over one year). They can be very challenging depending upon the investor, servicer, negotiator, etc. Lots of moving parts that can sometimes go beyond our control.
Now about your transaction (scratching my head). Did you take possession of the home before closing escrow? That sounds like where things may have gone wrong. For their protection, I would not have allowed my buyer to do anything to the home that was not within the terms of the contract. Typically, home/pest/roof inspections on short sales don't occur until after a short sale lender approval has been received and contractual timeframes begin.
Regarding your deposit, the terms under which your deposit can be returned should also be included in the contract. Once you start performing outside of the contract, it's very hard to say who is right and who is wrong without litigation taking place.
Sounds like you may need to speak with either your agent's broker or a real estate attorney. I'm so sorry that you are going through this. What a terrible headache.
Keisha Mathews, REALTORÂ®
CDPEÂ®, HRCÂ®, HAFAÂ® Certified
SAR Masters Club Member 2012
SAR Masters Club Steering Committee
Mathews & Co. Realty Group
@ Century 21 Landmark Network
(916) 370-1803 cell
The contractual question is best addressed to a realtor who is familiar with the paperwork or a real estate attorney. Without being able to see the documentation, it's hard to know where things stand.
Best of luck.
A short sale should not take that long in this market unless it's once of a few banks who are hard to work with but by now I would think you would have some sort of movement. Was the house listed in the MLS? Are you seeing homes in the area selling for much more than you think you are buying the home for? What is your situation with your lender? Have they gathered your documents etc?
I would be happy to look up the property and make sure its on the up and up based on what I can see but some of the things above look like red flags. Are you living in the house?
My email is bruce@eCurbRealty.com
Maybe the next step would be for you to contact the agents broker but first call the escrow company to make sure your deposit is in their account.
Realty World eCurb REALTORS