I signed a contract on a short sale. The seller also signed the contract. I' ve spend money on the inspection and the appraisal. Can the bank and/or seller get out of the contract? Is so, is it legal? How can i recoup my loses?
Good Morning Shirley........ in a short sale, the bank's loss mitigation department must approve the sale. A short sale is nothing more than negotiating the sale of real property for less than what the debtor owes on it. Short sales are typically used to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss to the bank than foreclosing. In other words, if the bank will lose more on the loan through a short sale than it would through a foreclosure, it will chose foreclosure.