Home Buying in Colton>Question Details

Chito, Home Buyer in Colton, CA

My agent told me that I only have 3days to decide whether to buy or not if the seller accepted my offer. Anything can happen within 4-6 months.?

Asked by Chito, Colton, CA Mon Nov 7, 2011

My agent told me that we only have 3days to decide whether to purchase or not once our offer is accepted. Anything can happen within 4-6 mos on waiting for a short sale to push through. A person might not have that money anymore or they can have more money and decide to purchase a better home. Since buying a home is the costliest purchase, is it ok just to decide it within 3 days after waiting months and months for them to accept it since they never tell you anyway if you're bid was rejected or not. A lot of variables to think of within 3 days especially if you have your work and your family to think on a daily basis. Is 3 days the Law or was it just the agent talking in a hurry to make a deal.

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First of all...just to clarify, the SELLER in a short sale is the Homeowner NOT the bank. The offer is accepted by the owner of the property, subject to the bank/lender approving the sellers request to sell the home for less than they owe. The lender is NOT a party to the contract.!

That said, Your contract allows for a certain amount of time for you to do your due diligence and decide whether to buy the house. The standard time is 17 days, but that can be negotiated between buyer and seller(remember, seller is the homeowner) You also have a time to get appraisal and loan approval, approve the preliminary title report, Natural Hazard Report, Insurability of the property....etc. These are your contingency periods.

It is possible that when the bank does approve the sale, the time they want you to close escrow will be less than the time you are allowed for your due diligence. If the listing agent has handled the sale correctly, they would be moving the close of escrow date forward as needed. If not, they will need to try and extend or you will need to hurry through your inspections. Hopefully by that point you will have you loan almost fully approved. (stay current with your financials to your lender.)

Most important to you in a short sale is that you have a short sale addendum which states the time periods for inspections, etc begin upon buyer's receipt of written short sale approval letter from any and all lenders involved. This is CRUCIAL. Be sure your agent does this.

Best of luck

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0 votes Thank Flag Link Mon Nov 7, 2011
Just because you accepted the offer you are not locked into the deal. WHEN the bank does approve the short sale, you will have an opportunity to accept or reject the bank's approval offer.
0 votes Thank Flag Link Mon Nov 7, 2011
Your earnest money is at jeopardy I believe. However if you wait it out and get the lender's approval and then find the house to be unsuitable for you, do have a 10 day inspection period where you can back out. You have to consider by you making and accepting the offer, You are now holding the seller up all that time from accepting another willing and able buyer. If you back out, you may very well have a hand in that seller's foreclosure or financial situation. I would say be courteous and be mindful of what you do when buying a short sale.
0 votes Thank Flag Link Mon Nov 7, 2011
If the SELLER (BANK) has not ACCEPTED your offer, then you do not have a Contract.

If you are ACCEPTING a COUNTER from the BANK, then you will have a signed CONTRACT>
If you are ACCEPTING a COUNTER from the Homeowners, then you do not have a signed Contract.

If you are not prepared to wait for the Bank, then you shouldn't be trying to do a Shortsale.

Good luck and may God bless
0 votes Thank Flag Link Mon Nov 7, 2011
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