How the Seller Can Cancel Your Short Sale Contract
Monday June 8, 2009
Just because the seller has accepted your short sale offer doesn't mean that the seller can't cancel your short sale contract.
Many states, California included, make short sale transactions subject to lender approval. This means the seller's lender must approve your short sale offer and qualify the seller for the short sale. Maybe the seller won't qualify. Moreover, there is no guarantee that the bank will take your offer.
A little known aspect of some short sale transactions, however, is the fact that another buyer might be able to ace you out. This may happen with the seller's approval and without your approval, even after you have submitted the highest offer and waited months for the bank to respond . . . read more about Cancel Short Sale.
More Articles by Elizabeth Weintraub:
- How Long Should You Wait for Short Sale Approval?
- 6 Things to Know Before You Buy a Short Sale
- How to Find a Short Sale Buyer's Agent
©Big Stock Photo
Technorati tag: cancel short sale
Comments
Another great post by Elizabeth Weintraub. She is on it! Short sales are becoming more and more common follow her steps and and you will find success.
Another thing to consider is the fact that the seller can cancel at any time. The short sale addendum in California requires that the bank approve the short sale. If the bank’s approval is not forthcoming, for whatever reason, then there’s no sale and the seller can cancel at any time.
Additionally for those of you who feel like you are going to pursue the transaction and “make” the seller specifically perform – just move on – the seller does not have the ability to specifically perform without the bank’s consent/approval. Save your money and instead of paying for legal fees to fight a losing battle, just go get another house – there’s thousands of them out there for sale now. If this is too difficult for you to stomach – don’t bid on short sales. Don’t get emotionally involved.