Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am buying a house. The seller wanted to close before the end of this year when we signed the contract in November so the closing date was set in the last week of 2010. We tried very hard to meet her request and now everything is ready from our side. However, just before Chrismas when my lawyer ordered the title he found out that the seller was requesting a short sale. This is a total surprise to us. If we know this is a short sale from the beginning we don't want to buy this house. Now the seller requests to postpone the closing date because she needs to get the approval from the bank. What can I do under this situation? I know in NJ, the closing date can be extened for 2 weeks. If after 2 weeks, the seller still cannot get the approval, can we walk away and request some compensation from the seller?
If the seller can pull off the sale w/i the next 2 weeks why is it an issue for you that it is a short sale? Just not sure I understand -- other than schedule -- what the objections are to a ss?
If the seller can pull off the sale w/i the next 2 weeks why is it an issue for you that it is a short sale? Just not sure I understand -- other than schedule -- what the objections are to a ss?
I think generally the short sale will take a long time to get the approval from the bank and we are not sure that the seller can actually get the approval. Our lease for the current renting house is expired soon. So we don't have much time to wait for the seller. If the seller cannot close the deal in 2 weeks, can we walk away?
My other questions are: Isn't the seller should tell buyer that the deal will go through a short sale before signing a contract?: Is the last minute notice of short sale reasonable?
Your purchase contract should tell you what your options are for canceling. If you have your own agent, ask them to review with you, or talk to an attorney.
It may be possible the seller didn't realize they would be short on the mortgage until recently. I agree you should have been informed as soon as they became aware of it as part of the disclosure process.
You stated that you have an attorney. You should be asking these questions of the attorney, not on a board like this. This board is good for ideas and opinions but your attorney knows your local laws and customs and should be utilized by you for the best advice.
from experience, sellers normally have the clause "subject to third party approval" written in the sales contract. if that clause is in the contract they are covered, but if not, your attorney probably can get some type of recourse. that won't do you much good considering the seller is insolvent. so yeah, you should be able to walk away from the agreement because the seller can't perform, that is, if you don't continue in negotiation.
Boy, if a short sale can be completed and closed in 5 days - that's impressive! Wish short sales moved that fast here... lol...
If you don't want the house, and the dates in the contract have come and gone, it would seem like that contract is null and void - of course I'm not an attorney and haven't seen your paperwork.
Methinks you should be talking with your agent or attorney instead of us!
I'd have an issue also. I don't know the answer but ask your attorney.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
