Is it legal for a lender to hold out on an accepted agreement for a short sale?
Question Details:
CALHFA agreed on the purchase price of $279,000 for a short sale. After 7 months, the appraisal was conducted, and they counter-offered me at $289,000 and buyer and seller agreed, addendum signed. It has now been 4 weeks since the offer was accepted. CALHFA responds, "Your counter has been submitted for review." Is this legal?
Real Estate Law Answers
Yes, unfortunately they can. There is no legal obligation to consent to a short sale--it is completely voluntary. Being voluntary, they can take as long as they want or put any conditions on it. One common condition is to subject any proposed transaction a new review, if any of the conditions change. You indicated that the price was countered; that means that it was a new offer that was put in. Since it was a new offer, CALHFA can review it anew. And again: they may turn it down for any reason at all.
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