As a buyer, how can get out of the short sale agreement of my house?

Asked by Dinanand, Lambertville, NJ Thu Aug 9, 2012

Hello, I listed my home as a short sale in March. It has been under contract with a buyer since last March. The contract we both signed has expired. The bank has requested $20,000 more from buyer BUT I have a new job and I want to keep the house - what can I do? I've been told nothing but contract expired and was not extended. Thanks

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7
Frank Dolski, Agent, Lahaska, PA
Fri Aug 10, 2012
I would check with your Broker/Agent and an attorney as well. Most Brokers, I know ours does, retain an attorney. This is your best source of getting aan exact answer. Good for you in getting a better job and possibly keeping your home!
0 votes
Dinanand, Home Seller, Lambertville, NJ
Fri Aug 10, 2012
Ok - no there isnt more to it, and I have been talking to the bank and telling them I dont want to ss. They are working on a modification currently. The problem is
The buyer does not want to back out, they have not replied to the request for $20k, but they did say that they did not want to terminate the contract . The contract ended July 25 and no one extended or canceled

No bankruptcy, no foreclosure or anything missing in my account. I think I picked the wrong lawyer as he says there isn't a clause for me to terminate the contract. I need advice on how to find a more helpful lawyer I really don't know how to find one. I came here thinking that probably there is nothing I can do - but I am hoping to find something (since there is no clause for me to terminate) I've talked to the attorney four times about it



AFTER the bank, I would speak to your attorney again to find out specifically why he/she says you have no options but to sell. Sounds like there might be more to this situation than just the small bits of information you are supplying here. (are you in bankruptcy? Is foreclosure pending? Did the buyers agree to the 20K increase in sales price? Did the bank already approve the short sale?)
0 votes
Mary Petti, Agent, Edison, NJ
Fri Aug 10, 2012
Several issues here....

Has the buyer officially "backed out" of the contract? If the bank is asking for $20K more from the buyer, they buyer must either agree, and revise the contract accordingly OR they can cancel the contract. Either way the changes must be in writing and signed by both parties.

If the buyers haven't officially terminated the contract and you have not agreed to terminate the contract, technically it is still valid. Typically in a short sale situation, the dates on the contract are "guidelines", since it can take months for things to be resolved via the bank (as you have seen)

Have you spoken to the bank yet? I would talk to them FIRST to explain the situation and see if you can work out a payment plan to get you caught up with your payments on the house to avoid the short sale.

AFTER the bank, I would speak to your attorney again to find out specifically why he/she says you have no options but to sell. Sounds like there might be more to this situation than just the small bits of information you are supplying here. (are you in bankruptcy? Is foreclosure pending? Did the buyers agree to the 20K increase in sales price? Did the bank already approve the short sale?)
0 votes
Dinanand, Home Seller, Lambertville, NJ
Fri Aug 10, 2012
I am behind 2 months and discussing with bank options. Attorney review was months ago. My lawyer has said that i have no options - that I am forced to sell house at this point thus the reason I am writing. I was hoping that this wasn't true. How would one find another reliable lawyer at this point? thanks.
0 votes
HOW ARE YOU FORCED AFTER NOT PAYING FOR 2 MONTHS WHEN PEOPLE I KNOW ARE IN THEIR HOUSES 4-5 YEARS WITHOUT PAYING THE MORTGAGE?
Flag Tue Sep 4, 2012
Edith Karoli…, Agent, Winnetka, IL
Fri Aug 10, 2012
From the detailed answers below you must understand that you really need to talk to a real estate attorney and one familiar with short sale situations, so that the legal side of a contract can be discussed in detail and you get solid legal advice how to proceed.

Be careful and do not assume anything.....
Good Luck to you.

Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
Covering for @Properties the city of Chicago, all N and NW suburbs,
the fine homes on theNorth Shore, and many of the W and SW suburbs,
and with her trusted Partner Agents all of the US and worldwide properties.
Edith speaks French, German, some Spanish and other.....
@Properties, 30 Green Bay Rd, Winnetka, Illinois 60093
EdithDoesItRight@yahoo.com or EdithSellsHomes@gmail.com
Check out my website at htttp://www.tinyurl.com/MeetEdithHere
HAVE THE MOST WONDERFUL DAY :)
0 votes
Michael Ipek…, Agent, Hackettstown, NJ
Thu Aug 9, 2012
Contact your attorney and discuss your options as far as the contract is concerned. Make sure your contract is null and void and make sure you have no obligations towards your Listing Broker. Once you have verified that you are in the clear, call your lender and discuss your options which will vary based on your situation. Don't wait for something to happen because whatever it is it won't be good. You have to be proactive about the situation because Lis Pendens may have already been filed. Want to talk about it give me a call Mike - (908) 285-3226 or send me an email: mipekdjian@aol.com
0 votes
Gina Chirico, Agent, Fairfield, NJ
Thu Aug 9, 2012
My first question is do you have an attorney - did you have attorney review when you signed the contract? If yes, I suggest you speak with him/her. What contract expired? The sales contract? The contract with your listing agent? Has the bank accepted the offer? Is the buyer willing to pay the $20,000? Who is in contact with the bank - your agent?

Aside from all that -- were you behind on your mortgage payments? Have you contacted the bank and let them know that you now want to stay in the home? Will they agree to work out something with you to stay in the home? Did you apply for a loan modification?

I know you are looking for answers and all I did was ask more questions but I'm just trying to get a clearer picture here. If you want you can shoot me an email Gina@GinaChiricoRealEstate.com
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