Home Buying in Santa Rosa>Question Details

Nonnie, Home Buyer in San Jose, CA

Short sales-California

Asked by Nonnie, San Jose, CA Thu Dec 8, 2011

I would like to have the details on purchasing a short sale, one bank, in CA. As I understand it:
1) Offer is accepted by owner
2) Offer/Price is submitted to bank for OK
3) Once bank OKs price, inspections, contingencies can proceed

Is this correct? If not, please correct.

What I really want to know is between the time owner accepts my offer and the bank approves it (which I understand can sometimes take months)-- am I at liberty to withdraw the offer?

Thanks

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Dear Nonnie, Even if something is already in a contract, if it makes you sleep better, you can put it in an addendum again! I suggest that in your Short Sale Addendum, that you have your agent fill out that you are not going to deposit your earnest money funds in the title company until bank approval, and that will be will the clock starts for inspections etc. Terry Bell, Realtor, Santa Rosa, CA CPS RE, 707-292-5712
0 votes Thank Flag Link Thu Dec 8, 2011
Hi Nonnie,
When writing a offer for a short sale the SSA or Short Sale Addendum form is included. This form states rather you give a deposit with the offer or wait for lender approval. It also states how long you are willing to give the lender to respond. It also states when the inspections and contigency periods commence. Make sure you review and understand this form when making an offer
Good luck,
0 votes Thank Flag Link Thu Dec 8, 2011
Nonnie, I will defer to the Real Estate Professionals on this advice forum to provide you specifics about the short sale process; however, I have to chime in @Ron's comment. Please, please, please be certain to have your own buyer's representative...I am forever amazed that any homebuyer would enter in the buying process without an agent whose sole fiduciary responsiblity is to them. The listing agent may be "nice", "knowledgeable", "friendly"....all good things; however their fiduicary responsibility is to the seller...not the buyer. It is rather like having the fox guard the hen house. Protect yourself and your interests.....interview and partner with a experienced buyer's agent. Best to you!
0 votes Thank Flag Link Thu Dec 8, 2011
Hi Nonnie: You are generally correct in your understanding of the process. However, the bank will consider terms in addition to price when deciding whether to approve the offer. Those terms involve the financing of the purchase---cash buyers have a leg up here over buyers who must obtain a loan. Terms also include time periods contained in the offer for inspections and contingency removals. As to what you say you really want to know----whether you can withdraw the offer: yes, you can at any point until after you have removed your contingencies on the purchase. If you want to discuss, please give me a call. I'm spending quite a bit of time lately helping clients with short sales and bank-owned property!
0 votes Thank Flag Link Thu Dec 8, 2011
It sounds like you've got it!
As long as you are not under Contract, (Contract has been signed by both parties) you may certainly walk away. You would simply submit CC, Cancellation of Contract. Since there is no Escrow, your Deposit Check should not have been cashed, you may simply ask for it's return.

I would hope that you have a Realtor representing you and wonder why you are asking us these questions?

Good luck and may God bless
0 votes Thank Flag Link Thu Dec 8, 2011
Yes, you can withdraw your offer anytime. Just because the seller has accepted it doesn't mean their lender will.
Web Reference: http://www.grovesteam.net
0 votes Thank Flag Link Thu Dec 8, 2011
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