Buyer waiting on short sale contract ratification for over 60 days - cant wait - how do I get out?? (short sales)

[encnova]

I have been waiting on 3rd party aproval from a bank on a short sale contract on a home in NO VA. The sellers agent told my agent 2-3 weeks for approval when we submitted the contract on 10/26. I am still waiting and meanwhile paying a $900 month to month fee at my current apartment which is now rented and I have to move by the end of Jan. How can I get out of this contract? My agent is useless.......

[ShannonMilligan]

Did you have a contingency clause saying you can get out by X date? I am guessing you didn't. I would
1) tell your agent you want out and see where to go from there
2) if they really are useless, fire them. If you can't b/c you are bound by a contract, ask to speak to their broker
3) if that doesn't work, hire a real estate attorney

I am not an agent, so I am not sure...You should post this on the real estate forum

[Margery]

An offer can be withdrawn anytime before being accepted (ratified) by the seller. If your agent refuses to do this, speak to their broker. If the agent refuses to give you contact information for the broker, call the local association and ask to speak to the legal department for advice. In Northern Virginia it is the Northern Virginia Association of Realtors, in Loudoun County it is the Dulles Area Association of Realtors, in PW county it is the Prince William Association of Realtors. You didn't say where you are located, there are others depending on the area.

[El General]

I agree with Margery. You were never in a contract, if they are mulling it over. If they opened escrow, then there would have had to have been a signed contract. If the realtor deposited your check somewhere, make them give it back. Could you provide detals on your earnest money---who did you make the check out to? Where was it deposited? I think you have a great question, because many of the lower priced homes are short sales--we are looking for good deals; not getting our cages rattled and our chains pulled.

[DavidS827]

My guess is that your contract was never ratified...even though it should have been and would only be subject to 3rd party approval and a few contingencies. However, many agents are being instructed to (or just don't know any better) leave the property "active" (as apposed to some form of "under contract") so that the bank can mull over any other offers that may come in higher than yours. I have been seeing a lot of short sales lately with 2 or 3 contracts and the lender(s) are acting like this is a sellers market and stringing along buyers and their agents by keeping the properties active the entire time they are reviewing your contract. In your case though, it may work to your advantage if the contract is not ratified. Because if it isn't you only need to send over a release.

Now, on to some solutions. Your agent should have put in how many days the lender has to approve the contract. If they did, and you are past that date, just send over a release. If they didn't, then you may still have the ability to get out of the contract if you made your offer subject to financing, or a home inspection. However, many short sales are sold as is, so the home inspection might not work. Another option for you is to get out of the contract by rejecting the HOA docs (if there is an HOA). If you haven't received them (or if it has been less than 3 days since you did), you have the right to void the contract based upon anything you read in them and disagree with. (There are a lot of details that I would need to know to specifically tell you whether or not any of these would work, but hopeully this can help you along.)

If your agent wont do any of this, then you need to call the broker, as you are really the client of the broker, not the agent. If the broker wont help, then I would personally go to his/her office and raise hell. If you don't get answer there, then I would call the local associations and file a complaint.

[Zack]

Check your contract carefully before walking away. Most contract offers usually insert language that the offer is only good for 24 or 48 hrs. If that language is not in the contract, you walk away, and the contract is later signed without you withdrawing it you could be forced to settle so be careful.