check out my website at: http://www.FortLauderdaleHomes4U.net
As you can clearly see by the responses, there definitely options available whether you are the buyer or the seller. Often time when I work on a short sale, there are tell tale signs that the approval is about to be issued and it is vital that all parties be in constant contact so that when the official short sale approval comes in , every can strap on the roller skates and get going on moving things forward. It has often been the case when the buyer purchasing a home via a short sale, the banks will issue an approval for a closing to be within 45 days. I have found in the 6+ years I have been working on short sales that so long as the bank approving the short sale is kept informed on the progress of the buyer's loan, if an extension is needed they will more often than not provide it. Of course the buyer and seller do need to do an addendum to the contract to extend the time time out as needed. Good look with your transaction. Should you have any questions, please feel free to contact me.
Lila Lopez, CRS, CDPE, -Pro
RE/MAX Advance Realty
sorry to hear that the buyer is not ready as for the lenders set clsoing time in the approval letter.
First you should talk to your Real Estate Professional. Not sure if you are the seller or are you the buyer. It makes a big difference if your Real Estate Professional has the knowledge in the short sale process on either side.
The parties can ask for an extension with the short sale lender. If they agree you are good if not you have to start the process all over again. The supporting documentation for the extension request should be as well submitted to make your case strong.
To answer your question directly, depending on the contract written, the seller could be still under contract to sell. Not having the contract and the circumstances it is not clear with your question.
Consult an attorney and/ or ask your realtor they should have all the documentation to give you the correct answer.
Annett T. Block
In addition to Antonio's response, he is right that none of the three parties (sometimes 4 if there is a second mortgage on the property) have to agree to an extension but the ultimate decision always falls in the hands of the primary lender. Therefore, it would not make sense for the lender to not extend a few more days; otherwise, they would have to start working on another offer, most likely with a same scenario (new buyer needs to have a loan to purchase the property) another 30 days or more, losing more money holding that SS open longer and putting the seller at risk to go to foreclosure (that is a phenomenon known as: "within a lenders' house, the right hand doesn't know what the left hand is doing".
And, yes. Give Antonio the "best answer".
If the loan is held up because of requests by the buyer's bank for extra paperwork, which are very common in this mortgage market, the third party usually is sympathetic.
While that third party can cancel the sale, they usually go along with an extension, but that must be done via an addendum. What may occur is that, because the deadline has not been met, is that there will be extra charges that get tacked onto the price.
Usually that extra charge will be additional interest and / or another month of HOA fees, but the delay does not usually mean a radical price adjustment.
However, the third party can cancel if they so choose. A cancellation does not appear to make sense because then they have to start the process all over again with someone else.
But, as the other respondents have observed, short sales do not always follow logical patterns. Because as we have all observed, short sales always take a very long time.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions