Home Buying in 60016>Question Details

startipr, Home Buyer in 60016

Can I walk away from a back-up offer on a contingent short sale property, in case I find another one I like?

Asked by startipr, 60016 Fri Nov 2, 2012

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I am sorry but I will disagree with the other post here. A back up offer is an executed contract if it was written that way. It all depeneds on how your Realtor or lawyer wrote the offer. You should speak to your lawyer and see what will happen with you canceling the contract. Please have them look for the need dates or time frames that may have been given by you for them to move to your offer when you do so. However, if you just gave a number over the phone as a back up, if you didn't sign a thing, you have nothing to worry about. If you need other help, check my web site at yourdwellings.com or give me a call. I can always direct you to a lawyer that can answer your legal questions if you don't have one.
1 vote Thank Flag Link Fri Nov 2, 2012
Again, I will disagree with the infromation here. You may or may not be in a contract and I support what I said early and what Halina is saying. Speak to an attorney. Also, the last numbers I saw on short sales from NAR showed a 16% success rate nation wide. While my office holds an over 70% success rate. It really is all about the listing office and the team they have working on the short sale. You can have your agent pull some date off the mls that may give you a better idea of the success this deal will have based on the agents success on other deals. However, the more important thing here is to check with you team, your Realtor, your attorney to see if you have a contract or a verbal offer. Then you will should be able to work with your team to know what and when to make your next move.
0 votes Thank Flag Link Tue Nov 13, 2012
Always check with your attorney...
0 votes Thank Flag Link Tue Nov 13, 2012
Absolutely you can terminate your back up offer anytime you want. Even the first buyer who has a contract signed by the seller can terminate and walk away until they've received a contract signed by the sellers lender. Speak to your agent and they can generate the appropriate paperwork.

To be honest there's only a 50-50 chance the short sale will even go through at least half the time the Seller doesn't qualify or there are multiple line holders on the property and if one of them refuses to accept the deal then the sale doesn't go through. So you're a back up on what is already a shaky deal at best.
0 votes Thank Flag Link Thu Nov 8, 2012
Most back up offers on short sales will be held by the listing agent until it becomes evident that the initial offer isn't going to work out. So there shouldn't be a problem withdrawing one. I would recommend having your agent be in touch with the listing agent making them aware that you are moving forward with your search and thus may need to withdraw your offer at some point.

Inquiring about their desired procedure at this point may clear the way for you to take future action without involving the expense of an attorney. As always, having things in writing is advisable.

Good luck,

Bill
0 votes Thank Flag Link Thu Nov 8, 2012
I agree with Eddie. I would speak with your attorney regarding how your contract was written and what obligations you have if any.

Sometimes a back-up offer has been negotiated with the seller, executed (signed-off), earnest money deposited, contingency deadlines and a "cancellation of prior contract" clause initialed. Then there are back-up offers that haven't been executed.

Please make sure your are not legally obligated to the contract prior to putting in an offer on another property.

Good luck!
Web Reference: http://laurakarambelas.com
0 votes Thank Flag Link Thu Nov 8, 2012
A Back up offer is not a contract, no earnest money deposited, no deadlines met. You can keep looking for another home. Only ask your agent to let the listing agent know that you do not want to continue being a back up offer for consideration.
0 votes Thank Flag Link Fri Nov 2, 2012
Yes - back up offers are not contracts - you are under no obligation.
0 votes Thank Flag Link Fri Nov 2, 2012
Yes- A back-up offer is not an executed contract offer yet so You are not bound in any way with it
0 votes Thank Flag Link Fri Nov 2, 2012
How can you not know the answer to that before submitting your Offer?
The Answer is sinply; if you are not under Contract, you are not under contract.
0 votes Thank Flag Link Fri Nov 2, 2012
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