Home Buying in San Jose>Question Details

Hollie, Home Buyer in Tracy, CA

short sale: 45 days

Asked by Hollie, Tracy, CA Thu Oct 24, 2013

For a short sale, do I have to wait 45 days to cancel the contract? How about if I find another house I want to buy?

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Answers

11
Hollie,

I know you have an agent and it is extremely inappropriate to continue to post questions here on the site to "second guess" your agent. Talk to your agent and get the information directly from the agent regarding your contract.

Good luck!
1 vote Thank Flag Link Fri Oct 25, 2013
He let me submit deposit to title company now. But the contract states I need to do it after approval. He didn't tell me there is a 2nd lender. How can I trust him?
Flag Fri Oct 25, 2013
Hi Hollie:

Please know that I am not trying to "pick nits" in this response, but I do have some questions:

1. I am going to assume that you have chosen, as you have in the past, to use the listing agent to represent you in this transaction. Is that what happened here?
2. In looking at your history, I see you've asked almost 100 "general buying" questions of the forum here at Trulia. I remember answering about 10-20 of your questions in the past, and have always recommended that you purchase a home by employing your own agent, why do you feel that you don't need to hire an agent even now?

Hollie, if I recall correctly, very early on when you first started posting questions, you mentioned that you had purchased homes in the past without using an agent and had done so successfully and had made money. As a result, you felt that you did not need an agent in the future to assist you. We all did warn you, however, that--with your penchant for distressed housing--these were not the same types of home purchases as you may have encountered in the past, and that you needed or would eventually need your own agent to guide you through the rigors of these more complex home purchases.

Well, unfortunately, that time has come...you need your own agent, and if you've signed a contract with the listing agent to purchase the distressed home, you need to communicate with THAT agent regarding your concerns.

First, please understand that this is not "sour grapes", its just that we can no longer assist you as this would be interfering with an existing agency relationship. You have an agent--talk to that agent. If you don't like what the agent is telling you, talk to the agent's broker. If the agent's broker is not helpful, then you need to hire an attorney and fight this out in court.

Second, if you are using the listing agent--as you have in the past--to represent you, then in all likelihood that agent has added some stipulations to the purchase contract that may protect his/her first client (the seller) and you may find that you've forfeited your right to the deposit if you cancel without cause. Again, these are issues to discuss with the agent in your contract.

Third, the preliminary report that you were provided before you purchased the home (or that you should have looked at before you made an offer) will list the total number of loans on the property. While the agent may not have verbally told you this information, if you were provided with a copy of the preliminary report, you were given "notice" of the number of loans on the home.

Finally, I encourage you again to find an agent to help you. While I know it's extremely easy for you to use Trulia's site to ask and get answers to plenty of questions, truth be told, its neither fair to the volunteer Realtors who answer questions here nor appropriate to utilize this free resource constantly. If you have a specific real estate question, you need to ask your Realtor or the agent involved. If you don't know what the answers are, you need to get an attorney involved. Simply using this site to circumvent ever having to hire your own agent is, as my friend used to say, stepping over quarters to pick up pennies. If you want to continue to purchase distressed property, especially now, as the landscape in that area continues to change and to become far more restrictive than it has in the past, you should either become your own expert through formal training and education or hire an expert to represent you.

Good luck!

P.S. John Juarez is probably the most correct answer you've received especially since the deposit being required now is a big "tip off" that the contract may be written in a manner that does not allow you to cancel without loss of funds.
0 votes Thank Flag Link Sat Oct 26, 2013
I'm an investor. Most investors work with listing agents directly. Most questions don't need attorneys get involved. Other people can learn something from my posts because some agents answered my questions very professionally. If agents answered my questions like an expert, he or she may be hired by other buyers or sellers. Otherwise why they waste time here? This is how this site works. I will continue to ask questions here. It will benefit a lot of people including agents.
Flag Sat Oct 26, 2013
You are bound by the contact that you signed.

If you find another house that you like, buy it...assuming you can afford two houses.
0 votes Thank Flag Link Fri Oct 25, 2013
Thank you. Your opinion is totally different with Richard
Flag Fri Oct 25, 2013
Discuss this with your real estate agent - it should all be spelled out in the contract you signed.
0 votes Thank Flag Link Fri Oct 25, 2013
After reading the exchange here I would recommend you to review your situation with a qualified California real estate attorney. It seem that you don't trust your agent and you need a third party to review this transaction.
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Fri Oct 25, 2013
I would think that you can cancel an offer on a short sale anytime before the sellers bank accepts your offer as you do not have a firm contract.

Be careful how you do it though, you do not want the seller or their agents getting the idea they can keep your deposit.

Consult your agent, but if you do not have one give me a call.
0 votes Thank Flag Link Fri Oct 25, 2013
Thank you for your clear answer. I didn't submit the deposit per the short sale addendum. So I can cancel it anytime, right?
Flag Fri Oct 25, 2013
Thank you all. I just want to know the rule or common practice in the industry. This is not a specific question. No matter listing agent or buyer agent, the first priority for them is closing the transaction. They would try to hide some information if it affect closing.
My agent didn't tell me there is a 2nd lender.
He let me submit deposit to title company now.But the short sale addendum states that the initial deposit will be deposited into escrow within three business days after approval.
0 votes Thank Flag Link Fri Oct 25, 2013
All depends on what you and your agent agreed to.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Fri Oct 25, 2013
If we were to answer we could be breaching your agency with your agent. Also, taking advice from someone other than the agent who wrote the contract may be a detriment to your transaction. We are not privileged to the details of your contract therefore we may innocently give you erroneous advice. You have an agent, please trust in your agent.

All the best to you.
0 votes Thank Flag Link Fri Oct 25, 2013
This is not a specific question. I just want to know the rule or common practice in the industry.
Flag Fri Oct 25, 2013
The time period depends on your contract - TALK TO YOUR AGENT. Also, you should be able to cancel your contract - again, TALK TO YOUR AGENT.
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Thu Oct 24, 2013
Thank you. I would talk to him if I want to cancel.
Flag Fri Oct 25, 2013
Hollie, if you are working with an agent already, I would advise you to ask your agent this question. In my past experience, I have cancelled contracts prior to the 45 days.
0 votes Thank Flag Link Thu Oct 24, 2013
Thank you for sharing your experience.
Flag Fri Oct 25, 2013
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