can seller cancel short sale contract after signing contract and bank has the deposit?

Asked by fleury8, Orlando, FL Wed Oct 10, 2012

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9
Manuel Barrio, Agent, Orlando, FL
Fri Oct 12, 2012
Technically he can't based on the contract but the buyers only recourse is to sue him to sell it and that will be too costly and seller will have too many defenses. What I would suggest is allowing seller to put house Temporarily off the Market and signing an addendum that the seller can cancel contract IF he gets the modification and buyer can cancel contract at any time.
2 votes
Russ Ravary, Agent, Commerce Township, MI
Wed Mar 6, 2013
Seller can cancel the short sale contract if the bank has denied the short sale and your purchase contract has verbage in there that allows them to do so. Talk to your realtor and/or a real estate attorney to see your options
1 vote
Sylvia Paul, Agent, Apopka, FL
Wed Oct 10, 2012
Yes the seller can cancel the contract and withhold your deposit if you have
violated any of the terms and conditions of the contract....depends on what's in
the contract. If you are not in violation then you should be entitled to your
deposit back, but there is a process.
Where is your agent in all of this and what is he/she saying? Your agent is really the
person who should be advising you in this regard. If you do not have an agent, you might
need to seek the advice of legal counsel. Good luck to you.

Sylvia Paul
Realty Center
sylvia@sylviapaulrocks.com
(407) 864-3139
1 vote
Marta Rosario, Agent, Orlando, FL
Thu Mar 7, 2013
Yes, in a short sale contract you have more then one way to get out of it even after a lender approval.
feel free to contact me for any other questions that you may have. Have a great day.
0 votes
Alma Kee, Agent, Tampa, FL
Wed Oct 10, 2012
Usually there are easy loopholes in a Short Sale addendum that would allow a seller or a buyer to cancel the contract. Hire an attorney if you do not understand what you signed. Your Realtor may also be able to help you understand the language. If you're working without a Realtor then you may want to find a Realtor and stay loyal to her. She can't give you legal advice but could point you in the right direction.

All the best,
Alma Kee, Tampa
http://www.SoldOnTampa.com
0 votes
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Wed Oct 10, 2012
Not near enough detail to tell. If you want a legal opinion you need to talk to a lawyer.

The key thing to remember about a short sale is that the seller does NOT WANT TO SELL, the seller HAS TO sell. If the seller can figure out any way to keep the house, they will.

Pragmatically, the seller in a short sale needs to take numerous actions in order for the short sale to be processed. Pretty easy for them to not take an action and have the sale fail. Sorry, but it's time to move on to the next house.
0 votes
Phillip Liang, Agent, Kissimmee, FL
Wed Oct 10, 2012
The seller has every right to void the contract. Their are consequences on how your contract was phrased, you should consult an attorney. I believe on the deposit part you mean that the title company is holding your earnest money. You will get that deposit back either way.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Wed Oct 10, 2012
I doubt the bank has the deposit or earnest money. The bank will have to accept the offer to allow the deal to close and until they do that the seller can sometimes cancel the contract and return the money. It all depends how the offer is written. Understand that just because the buyer and seller have signed a contract that does not mean the bank will accept it and it does mean the deal will EVER go through. the house could go to foreclosure which will end the contract. You should get your deposit back in either case.
0 votes
Phil Rotondo, Agent, Melbourne, FL
Wed Oct 10, 2012
Even though there may be consequences, the seller can change their mind or avail themselves of any other option at any time.
You should still bring in the contract to your attorney for confirmation.
0 votes
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