Home Buying in 08234>Question Details

Stormshadow, Home Buyer in 08234

can i walk away from a short sale with no deadline date given in my contract?

Asked by Stormshadow, 08234 Sat Feb 18, 2012

Help the community by answering this question:

Answers

11
Walking away from any contractor sale is tricky. Read your contract over thoroughly. Is a Short Sale Addendum included? Deadlines are critical and must be followed to the letter or the contract risks becoming invalid. Take a pencil and paper and make notes of all deadlines. An example would be ten days after the last signature on the contract. When was the last signature given, when is the ten day deadline?
Then look to see if there is any wording that says, something like" if buyer or seller has not ..... (fulfilled the required action) either buyer or seller may cancel the contract and all deposit money will be returned to the buyer with no further obligation." If you find something like this take your notes and your contract to a real estate lawyer and ask the best way to protect yourself. Remember you not only want out of the contract you want a return your deposit money. Of course the best time to consult a lawyer to review a contract is before you sign it, but they are the experts in helping you find a remedy. If it has only been a month, you may be just getting impatient. Remember short sales take a long time. If the bank has not received all the required documents it won't review the the package. Call the listing agent and try to get an update on where they are in the process. Good luck!
0 votes Thank Flag Link Wed Jun 13, 2012
Was the Sale contingent on "Lender or Bank Approval"? If so, and you have heard nothing, your Attorney should be able to get you released from any obligations. This is, however, a question for your Attorney. Do not proceed without one, in this situation.
0 votes Thank Flag Link Thu Mar 1, 2012
I cannot imagine how any agent or attorney would have let a contract be written with an open ended closing date, and no protection for you as a buyer. Everyone knows that short sales are anything but short (timewise.)
If you did not have an attorney representing your interests, you need one now.
30 days with nothing from the bank is not unusual. I've done many short sales taking anywhere from 60 days to 2.5 years! I've represented sellers where we had 4 contractual buyers come and go because their attorneys protected them from just this circumstance.
Get an attorney, or contact yours if you want out. I cannot advise you whether or not you will be able to be released since I am not an attorney and have no idea what your contract states.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Mon Feb 20, 2012
Storm,

First of all, was the contract reviewed by both the sellers attorney AND your attorney? Attorney review really has nothing to do with the bank and the short sale process, it's more to make contractual changes to protect the buyer and sellers as far as contractual obligations (ie: the buyer is responsible for all necessary municipal certificates or the seller is doing no repairs etc). Once all these contractual changes are made and both sides agree, attorney review is concluded.

This still has NOTHING to do with the bank and how they process or review your contract and approve a short sale. Two separate processes.

Second, how can you be sure the bank HASN'T looked at the contract? They may be in the process reviewing not only your offer price and terms, but the sellers short sale packet (with all their financial information) to determine if your offer, and subsequent shorfall of proceeds, is acceptable to the investors who need to get paid something.

Speak to your attorney about where you are in the process. It's conceivable that you can just rescind your offer since you haven't heard a word from the bank. I will tell you that I have a contract for one of my short sales that took from October, when seller signed contract and we submitted the short sale packet, till mid-January when the bank finally approved the short sale and then gave us 45 days to close.

It's always tough to put an "on or before..." closing date on a short sale contract because we have no way of knowing when (or IF) the bank will approve it, but there should have been something in there. If not, check with your attorney, there may be an addendum that says if the short sale is not approved by X date, or we don't close by X date, you can recind your offer.

I posted this link in the answer to your other question, but I will incude it again. It's a blog about the short sale process.

http://www.prudentialnewjersey.com/mary.petti/Blog/Short_Sal…

Hope this helps
0 votes Thank Flag Link Sun Feb 19, 2012
Check to see if you have a short sale addendum attached to the contract that allows a deadline for you to be able to cancel contract if no approval has been granted. It is also possible that you may have signed an attorney prepared short sale addendum whereas you and seller are allowing a 90 day period (after the expiration of the attorney review period) for negotiations to take place; after 90 days you may cancel contract if no approval is in place. As mentioned below, consult with you Realtor; if not, an attorney. Good Luck!
0 votes Thank Flag Link Sat Feb 18, 2012
Just ask. If u dont want the property the very simplest thing to do is ask for a mutual release
0 votes Thank Flag Link Sat Feb 18, 2012
Again there is no closing date on the contract
0 votes Thank Flag Link Sat Feb 18, 2012
Once the close date you put in the contract expores you are out of contract and can walk away. If you want the property enough you just extend contract with the proper documentation. I have had buyers walk away but et the bank keep woring on it while I got back up offers in place instead of stopping the process.
0 votes Thank Flag Link Sat Feb 18, 2012
my answer below is still true, get releases from an attorney for you to sign along woth all parties in the contract of sale. It is common for a short sale to take longer than a month to get a response from sellers lender. I have been involved in many short sales, closed as quickly as 21 days from contract to as long as 8 months. Depends how much you want the home and if its really a great opportunity for you. Some opportunities are really worth the wait. Your call. If you are using a real estate agent discuss this with your agent. Good Luck
0 votes Thank Flag Link Sat Feb 18, 2012
i forgot to mention offer was signed over a month ago and have heard nothing back. so its way to late for attorney review. seeing how the bank has not even looked at my offer yet is there a way to back out??
0 votes Thank Flag Link Sat Feb 18, 2012
Hello Stormshadow, please have an attorney review your contract then maybe she/he will draw up a release from any contract of sale you are in sign it and have seller sign it.

Good Luck
0 votes Thank Flag Link Sat Feb 18, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer