Home Buying in 85365>Question Details

Mia, Home Buyer in Arizona

I was told by my real state agent that once you submit an offer on a short sale, you have to wait until bank

Asked by Mia, Arizona Mon Sep 22, 2008

responds to the offer before putting another offer on another house. Is that true? What if we find a better house while waiting for the bank to respond to the short sale offer?
If we back out of the short sale, would we lose our earnest money?

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If you make an offer on a short sale and then find a better home that you want, all you have to do is send a written Cancellation of Offer form to officially cancel your offer. Then your escrow deposit should be returned to you from the Real Estate company, title company, or attorney's office, whoever is holding your deposit. When you have signed and sent the Cancellation form, you are then free to make another offer.

I am cautious about making offers on more than one house at a time, however, because if both offers were accepted, then you would lose your deposit on one, or even be sued for specific performance. You might be able to cancel on the basis of the inspection since short sales are almost always sold "as is" with right to inspect, but you are taking a chance that you would not be able to show repairs required by a professional inspector. This depends on the wording of the Purchase and Sale Contract, of course. Anyway, we agree with your Realtor, it is still risky to place more than one offer at a time. Good luck
0 votes Thank Flag Link Wed Sep 24, 2008
Thanks for advice.
Although I hope the bank acceput my offer, I will keep looking for the house.
0 votes Thank Flag Link Wed Sep 24, 2008

Jay is right on. If you used the short sale addendum you may withdraw your offer at any time. In other words, if you find a better house you can sumbit an offer on that house as well and withdraw the first offer.
Web Reference: http://www.TeamKearney.com
0 votes Thank Flag Link Tue Sep 23, 2008
I am assuming that your Realtor has explained the Short Sale process to you, and sometimes it can take weeks for a final answer from the bank.
Did your Realtor put a clause in your offer giving you the option to withdraw your offer at any time prior to final acceptance by the seller's lender? This is something that I have done for my Buyers in the past.
I'm not sure about your State Real Estate law, so will not comment on your earnest money question. You probably want to discuss your options with your agent.

Wishing you all the best!
Web Reference: http://www.GoPackerUp.com
0 votes Thank Flag Link Tue Sep 23, 2008
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