Home Buying in 20855>Question Details

Venny, Home Buyer in 20855

I want to Terminate my Short Sale Contract, will I get my Escrow Money back?

Asked by Venny, 20855 Mon Apr 9, 2012

I put an offer on Short Sale in November 2011, as per Short Sale addendum the contract is contingent for 60 days. after that I never signed any form extending the contract . I am no longer interested in this property. Do I need to terminate my offer contract? or else does it automatically terminate after 60 days? How can I get my escrow amount? I think it is holded by a neutral party.

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Yes you can and will absolutely get your Earnest Money Deposit back! As long as the short sale contingency period (3rd party approval) has expiered you are free to void your contract at any point in time!
0 votes Thank Flag Link Wed Nov 7, 2012
I would look at the market in that area an see if there are any other homes that meet your needs, The market is really picking up with family's that want to move during summer an be ready for the new school year. If you like the house, you also have the option to keep looking an make other offers an see what bank comes back first. I would make sure you go over what ever paperwork you have signed to this point with your agent to make sure of the terms that are in place at this time.
0 votes Thank Flag Link Mon Apr 9, 2012
The person best positioned with information to answer this questions is your salesperson/agent. They know what variables are in play and can answer that for you with different scenarios that pertain to your specific deal.

Greg's advice below is good however - I see you're not interested anymore, but before you let it go, make sure you've got another "bird in hand".
0 votes Thank Flag Link Mon Apr 9, 2012
Venny,

Before you terminate your short sale contract you may want to review the present available home inventory. The available homes for first time home buyers is in short supply this spring. You just may have a good value in your short sale home. Do your research before you have a final change of heart.

Greg Myers
RE/MAX Realty Group
0 votes Thank Flag Link Mon Apr 9, 2012
You will need to check with you real estate agent to be sure because every jurisdiction rights their forms differently, but in Northern Virginia, you would still need to execute a release of sales contract and have both seller and purchaser execute the form to receive your EMD check back.
0 votes Thank Flag Link Mon Apr 9, 2012
Your escrow money should be held by a third party. As far as making sure you are no longer committed on the contract, or whether you can terminate, I strongly suggest you talk to an attorney and show the attorney all the documents regarding the transaction. Yes, it will probably cost you some money for the attorney, but this looks like a great situation to use one. They will look at all the angles and give you professional advice upon which you can rely.
0 votes Thank Flag Link Mon Apr 9, 2012
Venny,
It is likely that your house is located in a Home Owners Association. If you have not signed for any documents, then you likely can get out under the MD Homeowners Association Act and receive a full refund of the deposit. If you would like to give me a call at 301-502-5027 with the address of the property, I will be able to tell you if you are in a HOA and give you further mechanics of voiding the sale.
Lucy Kessler, Associate Broker Re/Max Realty Group
0 votes Thank Flag Link Mon Apr 9, 2012
Thanks everyone for your time. I just called up my real estate agent and I was informed our has been accepted by bank. I am really not interested in the house anymore. How should I proceed now? Since my addendum says its valid only for 60 days, is the contract still valid?
0 votes Thank Flag Link Mon Apr 9, 2012
Hi Venny,
In order for you to get your Earnest Money Deposit back, you should call your Realtor and ask them to send you a Release or a Unilateral Notice of Termination. After you sign, it will be signed by the Seller. The Release is sent to the Company holding your money, then a check can be issued to you. If there are any issues causing the money to be held, contact an attorney.
I hope this helps.

Dottie Cordwell, Associate Broker
Keller Williams Realty Baltimore
410-241-3310
0 votes Thank Flag Link Mon Apr 9, 2012
Dear Venny:
Please ask your real estate agent or attorney to draw up a Release or Unilateral Notice of Termination. You can fill in the type of contingency and the date the contingency expired. You and the seller would have to sign and then submit to the party holding the deposit. You should then have your entire deposit returned (if that is how the contract reads). If you are not sure, check with your attorney.
0 votes Thank Flag Link Mon Apr 9, 2012
Thanks Andrea. I just called up my real estate agent and I was informed our has been accepted by bank. I am really not interested in the house anymore. How should I proceed now? Since my addendum says its valid only for 60 days, is the contract still valid?
Flag Mon Apr 9, 2012
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