Short sale and my right

Asked by Goldendeer, Mountain View, CA Fri Jan 11, 2013

I am a buyer. I am very frustrated with the seller agent. I received the contract with the seller signed on July 2012 for short sale,but I haven’t heard from him since then. My agent and I contact him many times by emails and phone, but we didn’t get any response. Recently I find out that the status of the property is changed to “Withdrawn/Cancel”. Also the seller agent is “missing” and replaced with other agent name. My questions are:

1. What does it mean? “Expired” and “Withdrawn/Cancel”.
2. Does the seller agent have the right to Withdrawn/Cancel the short sale?

3. Does the S. agent have the responsibility to tell me the reasons of Withdrawn/Cancel?

4. Does the s. agent have the right to sell to other buyer or keep it for listing again?

5. Does the s. agent have the responsibility to tell me what the lender’s response (Accepted my offer or not)?

6. Does my contract still have legal effect/legally binding?
7. Can I still have the right to buy the house or request to resubmit?

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Nanette Kunewa’s answer
Nanette Kune…, , Oakland, CA
Sun Jan 20, 2013
Since you already have an agent, why are you reaching out to other agents here? Why are you not asking YOUR agent that you already are working with?

Now, if this is your way of interviewing a potential, new agent...

I empathize with your frustration & wanting answers, but Please respect OUR time & energy. RE professionals get paid to CLOSE deals with real clients, not answer questions online from anonymous, random people.

Thank you & good luck....
0 votes
John Juarez, Agent, Fremont, CA
Fri Jan 11, 2013
If your contract with the seller has never been cancelled it is still valid and effective. A short sale contract does not "expire". After a certain amount of time, which will be stated in the contract, the parties have the right to cancel but the contract does not expire. You should have your agent contact the current listing agent or broker and clarify the status of your offer. Unknown to us is whether your offer was submitted to the short sale bank and any subsequent action. Frankly, if you have had no news in the last six months I would be surprised if you got good news now.
0 votes
Pacita Dimac…, Agent, Oakland, CA
Fri Jan 11, 2013
What is your agent telling you are the answers to your questions? We can only surmise what could have happened

1. What does it mean? “Expired” and “Withdrawn/Cancel” - listing agreement may have already expired. Or the seller may have found a way to keep his property. Or something may have happened to the seller (There was a case of the seller dying in the middle of a transaction. The death essentially nullified the contract if there were no provisions for en executor, etc.)

2. Does the seller agent have the right to Withdrawn/Cancel the short sale? --- It's not the seller agent who withdraws from the contract. It's the seller. If the short sale wasn't approved by the bank yet, the something happened in the interim. For example, it isn't just the bank who can foreclose. HOAs can do the same for unpaid fees and fines.

3. Does the S. agent have the responsibility to tell me the reasons of Withdrawn/Cancel? -- It would be the right thing to do.

4. Does the s. agent have the right to sell to other buyer or keep it for listing again? --- Is the property re-listed? Did your agent find out if the same brokerage (where the listing agent works/worked) is going to re-list?

5. Does the s. agent have the responsibility to tell me what the lender’s response (Accepted my offer or not)? --- It's not a matter of your offer being accepted. It's a matter of the short sale lender approving the price, terms and conditions.

Your first step is to engage your agent and your agent's broker to help you get hold of the listing agent's own broker to get the whole story. Also find out if the property was foreclosed or if the bank is going to foreclose. That happens even while the buyers/sellers are in contract.

6. Does my contract still have legal effect/legally binding? --- Did you receive a cancellation of contract?

7. Can I still have the right to buy the house or request to resubmit? -- Is the property re-listed?
0 votes
Cindy Davis, Agent, San Diego, CA
Fri Jan 11, 2013
It sounds like you had the seller sign the contract but not the seller's lender. Thus, it is no longer binding. All short sale contracts are 'subject to' the approval of the seller's lender. If you did not receive that lender approval, the contract is gone.

The listing is no longer on the market unless it has been re-listed by another agent. You certainly can continue with the new agent...but you might be wise at this point to hedge your bets and start looking elsewhere.

Short sales are incredibly frustrating, and you con't have very much control. Professional courtesy on the part of the listing agent would have been nice...but apparently you did not receive it.

Talk with your own agent and discuss the best solution for you. Best of luck.
0 votes
Christy Brock, Agent, Alameda, CA
Fri Jan 11, 2013
Sorry to hear about your situation.

1) The status means that the property is no longer for sale with the previous agent. The listing contract has expired.

2) Yes. Short sales are subject to short sale approval by the Seller's lender(s).

3) No. But common decency should kick in and the agent should give you a reason.

4) The Seller's agent does have the right to re-list and sell to someone else. Your purchase contract has most likely expired since the approval was not received within the contract period.

5) Same response as #3.

6) No. The contract has expired.

7) You have no standing to move forward with the purchase unless the house comes back to market.

Unfortunately, the listing agent did not do his/her job in this case. The Seller may have changed their mind about selling. The house may have been foreclosed. Either way - I suggest that you look for another property.
0 votes
Miekeba Jones, Agent, Silver Spring, MD
Fri Jan 11, 2013
Hi Goldendeer, If the agent's name changed, you should contact their broker. It is possible that another agent is representing the seller, if the original listing agent left the company or other reasons.
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