Home Buying in Mount Vernon>Question Details

Pinky, Home Buyer in Mount Vernon, NY

can a seller decide not to sell her home after there is a sign contract, the house was a short sale and the buyer paid money to do inspection .?

Asked by Pinky, Mount Vernon, NY Wed Jan 27, 2010

Help the community by answering this question:


Yes it is absolutely within the seller's rights to take the place off the market if they want. In the case of a short sale there are 2 selling parties that have a say, the property owner and the bank. Either one can say "no" to the transaction. Most of the time when a property is listed as a short sale it is prior to the seller even getting approval from the bank. They and/or their agent choose a price that they hope to sell it for and then take offers. They then relay those offers to the bank and hope that the banks says yes. If the bank says, "no we want 100k more," that usually means that the deal will fall through because the original buyer wasn't expecting that big of a jump. The home usually goes back on the market with an adjusted price based on what the bank came back at. Keep an eye on the place if you really like it, there's a chance it will come back on the market either as an adjusted price short sale or as a foreclosure after the bank takes it from the seller.
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0 votes Thank Flag Link Wed Jan 27, 2010
Are you sure it's the homeowner who is declining to go through with the sale? More often in short sales, the bank raises the objection, not the homeowner.

If the bank refuses I'm afraid there is not much you can do, except perhaps re-negotiate on price. If you don't have a lawyer involved, you might want to consider retaining one now and for future deals.

Unfortunately, if you pay for an inspection and the deal falls though for any reason, that money is normally lost to you. You lawyer can certainly seek some compensation in this situation, but the amount in small enough, usually, that it's hardly worth going to court over.

I personally have paid for quite a few home inspections over the years (I invest in real estate) for properties that I did not end up buying. It's never a good feeling when that happens, I know.

Karla Harby
Vice President
Licensed Real Estate Salesperson
Charles Rutenberg Realty, LLC
127 East 56th Street, 4th Floor
New York, NY 10022
(212) 688-1000 ext. 383
(917) 365-0876 cell and text messages
(212) 688-1919 fax
0 votes Thank Flag Link Wed Jan 27, 2010
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