Can I cancel my Short Sale if closing does not occur on closing date (August 31, 2010) on signed contract?

Asked by Lynne, New Jersey Sat Aug 28, 2010

Closing date is August 31, 2010 which is in three days. The real estate or my Attorney have NOT made contact with me since July 23, 2010. I was told at that time they needed to get more information from Sellers and Sellers Attorney and Bank (Survey - Title Search - etc.)....as of this date no contact from either one! Makes me very nervous now!

Can I get out of contract on this house? I also gave 10% down payment beginning of June and balance is to be in cash at closing.

What are my alternatives here? Can I cancel contract by not closing on August 31, 2010? Will I loose my down payment? What would I be held liable for?

Please help me, Thank you Lynne

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Answers

6
Diane Glander, Agent, Spring Lake, NJ
Thu Sep 2, 2010
Short sales rarely close on time. But, once the bank decides to close, you'd better be ready! Just one of the joys of short sales.
Hopefully, in your contract or in your attorney review period, your attorney put a date in whereby if the bank has not accepted your offer and set the closing date you can pull out of the transaction and get your money back.
If neither your agent nor your attorney protected you in that matter, you should find new ones to work with should you decide to pursue another short sale.
As far as what you can and can't do, only your attorney can advise you. If there is no provision, you are probably stuck and at the mercy of the bank until they set the closing date--which could be months from now! If you breach the contract, you could possibly lose your down payment. Something only your attorney knows.
Web Reference:  http://www.dianeglander.com
0 votes
Robert Suarez, Agent, Toms River, NJ
Mon Aug 30, 2010
Hi Lynne , The question you are asking should be answered by your attorney. You should contact him to address this question . As I do not know all the facts of the sale I would be doing you a disservice by attempting to answer this question .
As you are the one who is paying your lawyer . I think you should get on the phone and contact your lawyer. Do not stop until you get a hold of him. Remember he works for you !
Web Reference:  http://RobertSuarez.net
0 votes
Mary Petti, Agent, Edison, NJ
Sun Aug 29, 2010
Lynne,

More information please. I have found that as soon as the bank approves the short sale, they usually give the buyer and seller 45 days from approval to close on the deal and yes this CAN be after the contract closing date. Have you already received approval for the sort sale from the bank? If you have, then there should have been something in writing that the bank is ready and willing to close, and you should have had to sign something that you will close the transaction by a certain date. Also bear in mind that one of the last things that are done after the approval are the survey and title search.

When I have a listing that is a potential short sale, I always tell the buyers agent to put at least 4 months from signing the contract as the closing date. Some of the banks have been pretty swift in approving the sale, and others are a bit slower and require constant due diligence from the listing agent to "monitor" where the bank is in the process.

By all means, you call your attorney to find out what your legal options are. Call your agent, and have them find out what's happening (have your agent bug the heck out of the listing agent to get answers). You may be worrying yourself unnecessarily .
0 votes
Laura Gianno…, Agent, Manahawkin, NJ
Sun Aug 29, 2010
You have an attorney so this question should be directed to him or her.

Laura Giannotta
Keller Williams Realty - Atlantic Shore
0 votes
Ron Simone Jr, Agent, Clark, NJ
Sat Aug 28, 2010
Yes you can back out of it until they have bank approval you are not under contract give you lawyer a call and tel him you want him to send a kill letter and request them send you deposits back that is a quick summary to you answer if you would like further advice I handle short sales all the time please fee free to e mail me or call anytime.

Ron Simone Jr.
All Towne Realty
Broker/Associate
732-978-0991 Cell
Ronsimonejr@gmail.com
0 votes
The Ocean's…, Agent, Wall, NJ
Sat Aug 28, 2010
At this point you have to seek your attorney as it all depends on what protections were in the attorney review letter or addendums to the contract to escape out of the deal based on dates of performance on the sale side. If no one has contacted you and your closing date is in 3 days then you would assume the bank has either not approved the short sale or your attorney needs to complete running title and survey. If the selling side isn't ready to close then your attorney should be able to issue a time of the essence letter to try to close with 10 business days otherwise you can kill the deal or he may be able to just null and void the deal being it is a short sale. This all depends again on the seller and there attorney on how they want to handle it. Usually in short sales the sale side does not pressure the buyer as much as the seller isnt being awarded any money. All of these things must be discussed with your attorney or real estate agent though so you need to contact them immediately as your deposit money at this point could be at risk but only if the sellers or there attorney wanted to hold it in escrow. Again I am not an attorney and I do not represent you so the answers you seek lie within your contract of sale and addendums in reveiw letter you need to review those documents or contact the parties that represent you in this matter. These are just some tips for you so best of luck with the results!

Best Regards

Justin Bosak
Web Reference:  http://www.osmls.com
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