i put 2500 down on a short sale offer, with 2 months for the bank to respond.can i withdraw ?

Asked by Sid Lopez, Citrus Heights, CA Wed Sep 10, 2008

i am having second thoughts since the house is an older home and i see newer homes for lower prices coming on the market. can i back out since the bank has not officially accepted the offer?

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6
Ute Ferdig, Agent, Newcastle, CA
Wed Sep 10, 2008
Hello Ward. I am assuming that you signed the short sale addendum that specified that the agreement was contingent upon the bank approving the contract by a certain date (i.e., 2 months from the date of the acceptance). If that's the case, you are theoretically bound to wait until the 2 months are up. If you cancel sooner, your deposit money could be in jeorpardy. If you truly do have second thoughts, I would ask your agent to check with the listing agent to see if the seller would be willing to release you from the contract because the reality is that you'd still have the right to inspect the property and you can cancel the contract any time during the inspection period. With most short sales, the inspection period does not start until bank approval has been obtained because most buyers will not want to spend money on inspections without knowing that the bank approved the contract. If I were the seller, I would rather release you now than wait until the two months are up. The seller really has nothing to gain from making you wait.

Please understand that my answer is based on what happens most commonly in short sale situations. Without having reviewed your contract, I can only go by my experience and the little information that you provided in your question. You really need to take a close look at the terms of your contract and discuss this with your agent. Good luck to you.
1 vote
Jim Walker, Agent, Carmichael, CA
Fri Sep 12, 2008
Most short sale listings fail to sell the house or provide relief to the short seller homeowner:
See Jim Wasserman's article in yesterdays Bee:

http://www.sacbee.com/103/story/1227410.html
0 votes
Scott Godzyk, Agent, Manchester, NH
Thu Sep 11, 2008
you can withdraw your offer at anytime in writing and as long as it is contingent upon the approval of the short sale and the short sale has not been signed or approved by the bank. ask for a realease of escrow form by your agent. good luck Ward
Web Reference:  http://www.ScottSellsNH.com
0 votes
Erin, , South Lake Tahoe, CA
Thu Sep 11, 2008
Hi Ward: You can withdraw your offer anytime up until it is accepted by the Seller and the lender in a short sale situation if you have those provisions in your offer documents. Your agent should be able to best advise you.
Web Reference:  http://SoldByErin.net
0 votes
The Hagley G…, Agent, Pleasanton, CA
Wed Sep 10, 2008
Ward-

I do a lot of short sales as a listing agent and one of the things that I find is that lenders take so long to approve them, prices can drop (sometimes several times!) before the lender approves the short sale.

I don't even advise opening escrow and depositing the check until we have lender approval. (I do not advise the seller to sign the contract, which allows us to keep accepting offers too.)

Have your agent call the listing agent. Chances are you'll be fine.
0 votes
Adrian Hunti…, Agent, SAN FRANCISCO, CA
Wed Sep 10, 2008
If the contract hasn't been executed you can send a Withdraw Of Offer (C.A.R. Form WOO, 4/06).
If the offer has been acepted you can send a Cancellation Of Contract, Release Of Deposit And Joint Escrow Instructions(C.A.R. Form CC, 4/06)

If you have more questions please talk to your Realtor, or email me.

Thanks,

Adrian Huntington
Welcome Home Real Estate & Finance
53 La Serena Ct. Alamo, CA 94507
adrianh@americanfinancialfunding.com
925-818-6694
0 votes
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