If my home is currently listed as a short sale, and has been listed for over 10 months now and hasn't sold. Now, 10 months later, my financial

Asked by Lpz77, Rancho Cucamonga, CA Sat Nov 7, 2009

situation has improved and I would like to try to keep my house. The only problem is, I signed a contract last Friday to begin escrow. Is it possible for me to cancel the escrow and try to keep my home?

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., , 92705
Wed Mar 24, 2010
If your financial situation has improved, you no longer have a financial hardship. So, the lender will not approve the short sale if there isn't a financial hardship.

Theres reason to believe the lender will reject the offer and escrow will terminate. However, your agent should be in contact with the lender making them aware of your financial situation.

Good Luck

http://www.AllHomesByMonica.com

Monica Hernandez - REALTOR(R), SFR
Century 21 Amber Realty
23705 Crenshaw Blvd Suite 100
Torrance, CA 90505
310-293-3335 direct
dre lic 01239118
0 votes
David Tapper, Agent, Burlingame, CA
Sun Jan 10, 2010
Without seeing your contract, it's a little bit more difficult to say, but I don't think you should have opened escrow unitl your lender accepted the short sale.

You need to have a ratified contract by all parties to open escrow, and the lender has not accepted the buyers offer yet.

Talk with your agent, if they don't have the answers, ask them to talk with their broker or legal dept.

With what you told us, I don't think the lender will accept the short sale payoff if you can pay for your mortgage now. As Jeri said, talk with your lender.

Good luck.

"Tap"
Cashin Company
http://www.DavidTapper.com
http://www.TeamTappper.com
Redt4u@aol.com
650-403-6252
0 votes
Jeri Bailey, , Yorba Linda, CA
Wed Jan 6, 2010
I have gone through the exact thing you are talking about. We had a listing and went into escrow. Their financial situation improved an they wanted to try to keep their home. I told them to contact their lender directly and ask them what to do. The bank worked with them and gave them a loan modification. In the end they couldn't afford the loan mod, but at least they were given that option. They are now back in escrow and doing a short sale and ready to begin again. Good luck to you in this process. I know how hard these things are and wish you the best of luck!!

Jeri Bailey
ERA North Orange County
18431 Yorba Linda Blvd
Yorba Linda, Ca 92886
714-865-3720
jeri@dreamteamera.com
DRE # 01340282
0 votes
Allan S Glass, Agent, Los Angeles, CA
Sun Jan 3, 2010
LPZ,

You are attempting a short sale. In order to have a committed contract you must also have bank approval for the short sale. In order to be committed to your buyer, your buyer must also be committed to you. Typically that commitment is in the form of a released and non-refundable deposit. Assuming you don't have bank approval, it's unlikely the buyer has released his deposit as non-refundable. Check with your listing agent to see if this is the case. Either way don't be bullied. It's still your home and if you can keep it and want to stay, there's not much more to say about that.

How long your home has been listed is irrelevant to your question and if you have found a way to keep your home your agent should also be happy to help you do so.

Having said that, a few things remain unclear. Have you continued to make payments or you have attempted a loan modification? Is there a specific reason why your home has been listed so long without an offer?

Before you make the decision to cancel you should confirm that you haven't passed the point of no return. Once your account falls behind severely, the bank may request lump sum payments to bring your account current. Make sure you can get your loan modified or reinstated before you make a rash decision.

You may not want to complete a short sale, but if you have no other alternatives a foreclosure can be even worse.

Best of Luck. We're all rooting for you.

Allan S. Glass
President
ASG Real Estate Inc. ®
149 S. Barrington Avenue Suite #660
Los Angeles . CA 90049
E: asgreinc@gmail.com
CA License: 01154002

Twitter: http://twitter.com/asgreinc
Linkedin: http://www.linkedin.com/in/allanglass
0 votes
Vicky Chrisn…, Agent, Purcellvile, VA
Sun Nov 8, 2009
I am going out on a limb here - please remember I am not licensed in your state and I don't have a clue about those rules. I assume you have an agent? Let them guide you. But, in Virginia - here's how it would work....

If your contract was contingent on "third party approval" (meaning your bank needs to approve the sale) and assuming your bank has not yet approved the sale; then, call them. Explain your situation. Get a deal worked with them that includes rejecting the short sale request. That should get you out of hot water with your contract.

Dot your legal i's and cross the t's before hand, but I also agree honesty is the best policy. Your decision not to sell clearly is not a reflection of your buyer, and I am sure that you wish them no harm. Once you have a plan in place, have your agent explain the situation to their agent (again, making sure this puts you at no legal risk), and wish them the best. A fruit basket couldn't hurt - for the agent and the buyers, and oh, yeah, don't forget your agent who's busted her hump for 10 months - find her lots of referrals.

Congrats! I wish we had more of these problems to solve.
Web Reference:  http://www.vickychrisner.com
0 votes
Keith Sorem, Agent, Glendale, CA
Sun Nov 8, 2009
IN most cases honesty is the best policy.
Talk with your Realtor, have them inform the buyers that your situation has changed. Review the status of the sale. If you just opened escrow last Friday, I would think most buyers would be understanding.

If your Realtor is unsure, ask to speak with their broker.
0 votes
Dot Chance, Agent, Burbank, CA
Sat Nov 7, 2009
Lpz77, you must have mixed feelings on this! Congratulations that your current financial situation has improved - that is a great step forward for you.

I have to agree with the other agents below. You should contact a real estate attorney. Apparently, you have a listing agreement with a broker and now a contract to sell with a buyer!

If the buyer backs out for some reason are you in the position to pay all your back payments plus all the fees the lender has probably tacked on by now?

All the best to you!
Web Reference:  http://www.DotChance.com
0 votes
Pat Moyer, , West Chester, PA
Sat Nov 7, 2009
Does an improvement in your financial situation mean you can now get current with your financial obligation to your lender and stay current in the future? If so, then you need legal advice on how to proceed because you have a contract on this home, a listing contract with a broker etc.
Web Reference:  http://www.MainLineWest.com
0 votes
Mario Villag…, , Burbank, CA
Sat Nov 7, 2009
You might want to consult a real estate attorney to look at your contracts before making any decisions.
In my opinion banks don't like to accept short sales because they lose money. They are likely to accept any short sale because you no longer have a hardship and can make your payments. More than likely it was disclosed to the buyer that all terms are subject to the lender's approval which in this case might not happen because of your improved situation.
Good luck to you and congratulations on your recent improvement to your financial situation.
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