Make no bones about it, selling in a foreclosure and short sale market is tough.
Sellers want to know how much of a hit they will have to take to move that home in a market filled with distressed sales . . . read more about Selling in a Foreclosure and Short Sale Market.
More Articles by Elizabeth Weintraub:
- Foreclosure and Short Sale Deficiency Judgments
- How to Price a Short Sale
- Do Banks Prefer Short Sales Over Foreclosures?
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Technorati tag: Selling in a Foreclosure and Short Sale Market
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Comments
Hello, I’ve read many of your articles on short sales and I may have missed some information, however, how do you cancel a short sale? It is past the 17 days (actually 31 days). Things have changed and the stress level is a 10. How can this be cancelled? Should have seen your active rain articles and blog earlier! Thanks for any information you can give.
Are you the buyer or the seller? What does your contract state? In California, for example, buyers can cancel per paragraph 14 B1. If you’re a seller who no longer wishes to sell, you should speak with your real estate agent about canceling the contract and the listing agreement.
Hi-
I recently put an offer in for a short sale that was previously in contract with another buyer, but the buyer backed out of the offer for medical reasons. I was told by the selling agent that if I came in with the same offer that had already been approved by the seller and bank, the house was mine and would close in 30 days. I did. The seller signed the contract to sell the house to me, and I was suppose to get the approval from the bank 72 hours later….that was 2 weeks ago and I am still waiting. All that needs to be done is a name change, from the old buyer to mine. The waiting is starting to make me nervous. Any thoughts?
Very few lenders will immediately approve a new buyer for a short sale after the first buyer walked away. The amount of time it takes for a second short sale approval depends on many factors. The file could be out-of-date and require updated seller financials or the appraisal may have expired, which means the bank could need to hire a new agent to do a new BPO. At some banks such as Bank of America, the bank starts over with a new buyer. But I wouldn’t give up hope.
Mrs Weintraub,
I find myself in a rough spot right now with the sale of my house. A little background first: I am in the Army stationed at Ft campbell, KY. I reside in Oak Grove, KY and put our house on the market in December. I was on orders to move to Virginia. While in school at FT Leonard wood I received an email stating that i would be staying at Fort Campbell. We received an offer on our house on 22 Feb and we countered back and it was accepted on 25 Feb. My question is: Are we able to back out as sellers to keep our home since my orders have changed? Any help would be greatly appreciated!
Thanks,
Billy
Hi Billy: I don’t know the laws in Kentucky but I imagine your purchase contracts are very similar to ours in California. Unless you made the offer contingent on your transfer, it is likely that you have a contractual obligation to sell; however, I can’t give you legal advice.
I do know that few courts force a seller to sell when the seller has a change of heart. But because the buyer may suffer damages in the event you cancel, you should seek the advice of a real estate lawyer..