Question Details

Shirley, Home Buyer in n.j.

I have a signed contract on a house short sale can the bank out because of too much ofa loss if so what is

Asked by Shirley, n.j. Sat Aug 23, 2008

a contract for?

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I signed a contract on a short sale. The seller also signed the contract. I' ve spend money on the inspection and the appraisal. Can the bank and/or seller get out of the contract? Is so, is it legal? How can i recoup my loses?
0 votes Thank Flag Link Thu Sep 11, 2008
Good Morning Shirley........ in a short sale, the bank's loss mitigation department must approve the sale. A short sale is nothing more than negotiating the sale of real property for less than what the debtor owes on it. Short sales are typically used to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss to the bank than foreclosing. In other words, if the bank will lose more on the loan through a short sale than it would through a foreclosure, it will chose foreclosure.

Yvonne Baker, Real Estate Consultant
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0 votes Thank Flag Link Sat Aug 23, 2008
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