Return of earnest money on a short sale gone bad.

Asked by jgfedak, 44138 Thu Apr 4, 2013

My wife and I made an offer on a short sale back in August. Bank approved the offer. The week of signing the seller declares bankruptcy(Nov. 2012). We hang in through the bankruptcy and sign and short sale agreement extension. We discover water in the basement and the utility informs us there was a water leak and they shut off service. At this point we have other properties that we would like to explore and have requested a mutual release which will allow the earnest money to be returned to us(buyer). Its been a few weeks and the seller hasn't signed. Realtor doesn't have much experience. Any advice besides hiring a real estate attorney? Anyone have a story similar to this? Also, the bank isn't aware that we want to walk and are requesting additional documents for us to sign.

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CJ Harrington, Agent, Strongsville, OH
Thu Apr 4, 2013
Go to your agent's broker immediately. Experience or not, they can communicate with the Realtor representing the seller to reques the sellers sign the release.
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James Gordon…, Agent, Hamilton, OH
Thu Apr 4, 2013
Oh my G....!

"Realtor doesn't have much experience. Any advice besides hiring a real estate attorney? Anyone have a story "

Do not take a new Realtor® to a short. At the poinof bankruptcy you should have bailed and let them know you would be back if they were able to get it released.
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