Short sale contract

5 Replies

I think we messed up -not sure - We made an offer on a short sale property and seller accepted our offer. It has gone to their bank for approval with no response in sight .Its 1 1/2 months to date since our offer has been accepted. Have we made a mistake ? Can we make offers on other properties while this is still pending? or do we have to wait out the full three months that our attorney put in , in the contract? What are our options?

Ask the realtor who made the short sale offer.


Joe Gore

Hi Nassera-

Short sales can take a long time for bank approval- up to six months. However, you have not made a huge mistake. If the bank has not accepted your offer, you may revoke it. Simply call your agent and tell him or her to revoke your offer. You are not legally bound to any offer you write UNTIL it is accepted by the other party.

Erica

Not true, necessarily.  Your offer Has been accepted, by the owner, and is subject to approval by the bank.  It depends on what Exactly is stated in your contract, and the addendum related to the short sale.  I don't have time to google it up.  Some are binding on the buyer from the end of the inspection period, which may begin upon seller acceptance, some begin upon lender approval.  Your agent can surely tell you, but you need to read the contract and addendums you executed.  If you have any questions about what a particular clause means, feel free to post it here.  Also, 45 days is too soon to expect an approval.

In many cases, the accepted purchase contract has a backdoor for the purchaser to escape. Usually a simple rejection of the inspection contingency will do the trick. Your mileage may vary (especially when dealing with HUD) but, generally, purchase contracts are written to favor the position of the buyer.

- If you put that you will wait 3 months in the contract .. then you probably have to wait or risk losing your deposit.

- You should have understood the short sale process before you agreed to purchase.

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