If we are buying with cash and have signed the closing documents, can the banks actually back out after accepting our offer?

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If we are buying with cash and have signed the closing documents, can the banks actually back out after accepting our offer?

We are attempting to purchase a home on a short sale. Our offer was accepted 4 months ago and the banks kept asking for more time we have always agreed. Closing date and time are set and less then 48 hours before the date and time the banks are arguing over who takes the loss and are attempting to cancel the closing. We are buying with cash and have signed the closing documents, can the banks actually back out after accepting our offer?

Asked on August 8, 2012 under Real Estate Law, Wisconsin

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the lenders on the property that you have purchased via a short sale have both signed a short sale addendum or some other document agreeing to the price paid of the home desired in addition to the seller, the seller and the banks have to go through with the sale regardless of issues on how the loss on the loans securing the property will be allocated. I suggest that you consult with a real estate attorney about the situation you are in.


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