It would be very hard for the buyer to force the sell if you change your mind before closing escrow.
Can the buyer sue for performance? Yes. Anyone can sue for most any reason, but there are so many other listings that it would be easier for them to move on.
Good Luck... more
Buyer can back out - usually up to 3 days AFTER bank provides written approval of short sale - that is when the earnest money deposit is supposed to be in escrow. Until money is exchanged (consideration is given) you do not have a binding contract.
Let me know if you need any help buying another home - I usually recommend buyers stay away from short sales.
626) 233-0190... more
Generally, that's your only contingency. So, you'll probably have to go through with it - why wouldn't you? Short sales are almost always a great deal for the sellers.
What does your agent say?... more
It's done everyday. Talk to some agents, and see if it's actually the right thing for you to do at this time, considering the market and all. Do not let anyone pressure you to list. Only do it if you truly want to after hearing from several agents. Below is a link to a blog that might be of some help in talking with them.
There is definitely a certain progression for forms, but during a Short Sale or bank owned, they come in all different orders.
I would ask your agent to explain the process and forms to you. It's hard to know exactly what you're looking at.... more
Yes, you certainly can ask your agent to write a cancellation note/withdrawal of offer and send it to the other agent. It's better to back out now while they are in the preliminary stages of short sale approval, because if you backed out later, it would delay them to review another buyer's pack. Have they opened escrow with deposit of your check? That should be returned to you, as well - but that will need to be signed by all parties involved. Your agent should be able to guide you. Short sales are NOT for the faint of heart -- they can take a very short time, or drag on for a year or more. Having two lenders makes it more complicated. Good luck - and make sure you don't go into a deal trying to find a way out. Your agent worked hard to get your offer accepted, and it's not fair to him/her to have them place multiple offers if you are really not serious about the property. There is wording that your agent can put into further contracts that protect you by keeping your deposit check instead of opening escrow, and I suggest that for my buyers trying to buy short sales.... more
You can source via county tax records OR realtor off homes sold , posted in MLS,
FSBO would not be included in MLS postings
Agent would comp value of property based on sq. ft, room count, year built, other features.
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We need to know if the house has been bolted to its foundation? Insurance companies must offer earthquake insurance at binding and every two years. It does not matter if you want to purchase or not. Also we need to know the address to determine the earthquake zone which will determine if a gas shut off valve may be acceptable if the property is not bolted. This is more of a primary issue than the secondary issue of updates to electrical and plumbing and heating..... you can email the address at firstname.lastname@example.org. If u are not insured right now.. go to california Fair Plan.... no water damage and no liability but U need some ocverage. calculate 175 per sq foot minimum....... more
It depends on what is in the conrtact ,any cotingenies also look at the dates in the contract
. and of course have a Real estate review your contract..
Hi Lori, sorry to hear about your situation.
You were not buying an "REO", you sound like you were in a short sale situation. Let me define the terms for you.
Short sale: Owner is behind on their payments. They are selling the home for less then they owe on their mortgage due to a declining market.
REO: Bank has foreclosed on owner who was not making the payments. Bank now owns the property outright and will usually hire a realtor to market and sell the property.
The truth is, you were never really "in escrow" so to speak. The seller can accept your offer, but it's the bank that really decides what amount the property will sell for. Buyers who attempt to purchase short sales are not in a very good position.
Question, did your agent discuss the differences between REOs and short sales? Perhaps they are not experienced enough to know the difference? You should have waited to have the appraisal done until the bank accepted your offer. Sometimes on a short sale, the owner will have two loans, a first and a second. These type of short sales are hard to close because the second will come back at the end and demand some money. If you won't bump up your offer, they will refuse to sign off on the sale and you are out of luck.
If you are interested in learning about the differences and how to go about buying REOs, contact me and I'll give you some information about workshops where you can ask questions.... more