I recently put an offer on a short sale & I have now found a great property that is not a short sale. Can I?

Asked by Jenny, Minnesota Sun Jul 13, 2008

get out of my offer on my orginal? My realtor is out of town & I will ask him when he is back in town. Any advice would be great! Thanks

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Mary Leizinger’s answer
Mary Leizing…, Agent, Eden Prairie, MN
Sun Jul 13, 2008
If you have only made the offer and it has not yet been accepted or if the seller has extended a counter offer to you that you have not accepted, you can withdraw your offer or decline to negotiate further. Your agent or another agent in your agent's office can assist you with that. Call the office and ask to talk with the broker. There is probably someone assigned to cover your agents business while they are out of town who can help you with this. Timing is everything, so don't delay.

If your offer on the short sale has been accepted, there may be contingencies, such as for an inspection that would allow you to escape the contract. Get advice from your agent's broker or designated backup on that question right away. You may have a timeframe for the bank to approve the offer. The offer may not be signed by the seller until the bank approves.

If your contract is fully executed and all contingencies cleared, you may be out your earnest money or have other trouble if you try to escape the contract. In this case, you should consult a good real estate attorney.
Web Reference:  http://www.MaryLeizinger.com
0 votes
Ron Knutsen, Agent, North Saint Paul, MN
Tue Jan 15, 2013
Hi Jenny,

If the seller has accepted your offer but, the bank has not, you do not yet have a fully executed contract as any offer accepted by the seller is subject to third party (the bank's) approval. You can, therefore, withdraw your offer and expect to have your earnest money, if paid (not likely), returned to you by the listing broker in a timely fashion.

Short sales tend to be painfully slow in getting to the closing table so, you must be prepared to "hurry up and wait" if this is the type of sale you wish to pursue. Some banks have certainly improved upon their approach to short sales but, many have not. Always be certain you are dealing with an agent that is familiar with the short sale process - this applies to BOTH sides of the transaction. I always have my sellers use a law firm to professionallly negotiate the short sale as this is all they do. It is generaly more reassuring to all involved when done this way.

It is more desirable to deal, as a buyer, with short sales that have been pre-approved. Much time is saved when a short sale doesn't go on the market until after the bank has approved the sale and guidelines are established as to what the bank will accept. The bottom line is that each bank is different. It is a good idea to have your agent find out what he/she can about any home you may be interested in so that you may get a sense of what to expect as to the process and time frames.

Good Luck!
0 votes
Scott Hutchi…, Agent, Lakeville, MN
Sun Jul 13, 2008
Jenny,
If you have an signed/executed offer (that both buyer & seller signed), you will need to execute a cancellation....even if it is subject to "bank approval". As stated below, call your agent and he/she will know how to deal with this.
0 votes
Aaron Dickin…, Agent, Champlin, MN
Sun Jul 13, 2008
If it is signed it makes it more difficult to cancel but again, depending on the exact terms of how the offer was written, it might make it binding at this point or only binding after the bank accepts the offer as well. There also may be a timeline in the offer in which the seller has to get the bank's answer or the contract is canceled.

With these types of offers there are many variables and depending on how the agents & parties negotiated the terms, several options may apply. Sorry, but only your agent or an attorney that has seen the offer would be able to tell you for sure!
0 votes
Jenny, Home Buyer, Minnesota
Sun Jul 13, 2008
Hello! Thanks for the responses! It is a short sale & they buyer has accepted my offer but now we have to wait for the bank to accept (which I know could takes months).
0 votes
Teri Eckholm, Agent, St Paul, MN
Sun Jul 13, 2008
Hi Jenny!

I cannot tell from your question whether the offer was accepted or not.

If a buyer's offer has not been accepted or has been verbally accepted but is not fully executed (with ALL signatures from all parties on the entire document) whether home is a short sale or not, a buyer would have the right to withdraw the offer. A non accepted offer can be withdrawn at anytime. But if buyer and seller have agreed on all stipulations to the offer, and the purchase agreement is fully executed, then you have a legal contract.

Check with your agent, broker or a real estate attorney to see what your options would be.

Good luck!
0 votes
Dallas Texas, Agent, Dallas, TN
Sun Jul 13, 2008
Do you have an executed contract what is the option period? if so you need to contact the broker for that info. IF you dont have an executed contract THEN YOU COULD be fine, depends.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference:  http://www.lynn911.com
0 votes
Aaron Dickin…, Agent, Champlin, MN
Sun Jul 13, 2008
It all depends on the terms of the offer as you wrote it. Without seeing the contract, we can't give you any direct advice.

My suggestion is to call your agent's cell phone or the person handling their business when they are out of town. In most cases he/she will still be able to give you a timely response.
Web Reference:  http://www.AaronSOLD.com
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