We have an offer in on a house, and it has been approved by the sellers, but it is a short sale and we have not heard anything back from the bank...

Asked by Danibeth86, Gardner, KS Thu May 20, 2010

apparently the bank that held the mortgage sold it to another bank a couple weeks after we had wrote the contract. My question is we have a closing date of May 28, if we havent heard anything by then, are we still bound to the contract or can we look for something else if we want to? We have already gave them an earnest money check... thanks :)

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Joyce O'Connor’s answer
Joyce O'Conn…, Agent, Gardner, KS
Thu May 20, 2010
If you used the typical Johnson County contract, it should have included a Short Sale Addendum. On that addendum it should specify a time whereby the contract may be cancelled if you don't have an answer from the seller's mortgage company. In that case, you'd get your earnest deposit back when the buyer and seller signed a cancellation form instructing the title company to release the money to you. I hope that form was used. You're in a tough situation with a mortgage that was sold to another company in midstream of your transaction because that could possibly cause lots of delays. You can always continue to look at houses. Your agent should be able to advise you what to do if the contract simply expires without hearing from the mortgage company. If there's any way I can help, don't hesitate to contact me unless you are already signed up with a buyer's agent. If that's the case, your agent can help. Joyce O'Connor, Reece & Nichols O'Connor & Associates, Gardner, Ks.
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Karen Barber, Agent, Olathe, KS
Thu May 20, 2010
I'm not sure how long ago you made the offer but short sales are still taking about 3 months to close from my experience. If you haven't had an approval from the mortgage company yet on the offered price, I wouldn't expect to close by May 28th. (I also wouldn't expect the bank to agree to your offered price. Sometimes they do but sometimes they come back and counter offer for a higher price. The Sellers may have said okay but you are really dealing with their lender, not them.) It could happen pretty quickly after the bank's approval, but without that you are probably still looking at a wait. I'm in Gardner and the way the Kansas contracts read you have a close date of "on or before" May 28th. That means if they can't get you closed your contract really becomes defunct, so yes you should be able to look for something else. I've had clients do both...wait until the bank finally responds or drop the offer in place and go elsewhere. Good luck! Hope you get a home soon. Karen Barber, Reece and Nichols O'Connor and Associates
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Rhonda Holt, Agent, New York, NY
Thu May 20, 2010
Hello, I do many short sales (check my just sold properties on my site) and the bank can take a long time to respond sometimes. Just check your contract to see if your attorney put a time limit in your contract so you can back out. The proposed closing dates in contracts are just estimations if all goes well. But there should be some type of deadline included so you can be protected.

Good luck with everything.
Web Reference:  http://www.Kandhhomes.com
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