CanI get out of a short sale contract that the seller accepted but not yet their bank?
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CanI get out of a short sale contract that the seller accepted but not yet their bank?
I am a buyer in a short sale contract where the seller has accepted my offer. At this time the sellers bank has not approved the short sale. The appraisal was just done and came in $15,000 above my offer. Can I get out of this contract and have my earnest money refunded?
Asked on November 18, 2011 under Real Estate Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Good question. Assuming you have not waived any contingencies concerning your purchase of the property in a short sale (home inspection or your loan contingency) you can notify the seller that you do not intend to close escrow on the property.
Look at your contract as to the time period that the seller's lender has to sign a short sale addendum which I presume the purchase is subject to such an approval. If there has been no short sale addendum approval as well by the seller's lender, then you should be able to cancel the purchase at this time as well.
I suggest that you consult with a real estate attorney about your purchase contract and your question,
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