Last minute short sale

[Jess Slack]

We were set to close on our first rental tomorrow and at the last minute the sellers attorney is saying our offer won't cover the sellers second mortgage. We are in limbo now. My question is this: if the seller can't come up with the money, what are our other options? Short sale was mentioned by my realtor. Is this grounds to get out of the deal completely with our earnest money in hand?

[Brett Goldsmith]

You should find out what the GAP is and see if it makes sense to close it somehow or you can attempt the short sale, maybe there is even an opportunity to lower your offer for your patience and to leave more wiggle room with the mortgage servicer. Makes sense that you should be able to get out, especially since the seller apparently can't perform on the contract as the transaction is not a short pay and not approved.