Is there any way to cancel a short sale once the bank has accepted the buyers offer?

The bank has accepted a counter offer from the buyer and we are waiting for them to get their financing. In the meantime, we have recieved an affordable loan modification from our lender. Is there any way to stop the sale?

Asked on May 22, 2009 under Real Estate Law, Florida

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Your P&S Agreement has already been signed, I am assuming? If so, you may want to check this agreement to see if you have any outs.  If it is a contingency agreement based on the buyer obtaining financing, that may be the only way out.

Otherwise, I don't know if your bank will go for simply stopping the sale.  How is it the bank accepted a counter offer if you received a loan modification approval? In other words, I am assuming this is pre-foreclosure and it is still with the lender? Well, then it may be the lender's fault. 

Contact the Florida Dept of Financial Institutions and see if there is way to stop the sale or get the Dept involved. http://www.flofr.com/banking/


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