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I put in an offer on a short sale almost exactly a month ago. I wrote in the contract that if I did not receive an answer from the bank in 3 weeks I could void the contract. After that deadline had passed I finally heard back from the bank verbally. They countered my offer and wanted me to fax them page 1 of the contract, X out the old price and put a new one and sign/date it. Once I did this I scheduled the inspection. 1 day before the inspection I received a call from my realtor stating the bank has not "officially" accepted the offer even though they verbally proposed it. They were supposed to finalize everything in a few days but did not. It has been about 10 days since then. I started looking at houses again and am now having 2nd thoughts about this short sale. Since I did write I can void after a certain date BUT dated the counter offer later than that deadline can I still backout? What if they finally accept the offer, am I legally obligated to purchase now?
First, and most important, ask your agent. From what I can tell, you are not under contract right now so you can cancel anytime. But that depends on the fine print of your contract.
Also, most contracts have an inspection contingency period. If the bank approves the short sale then you typically have the option to cancel within the contingency period.
Once again, the best person to help you is your agent.
From what I understand there isn't a written counter offer. They asked you to make changes on the original offer and initial them and you did. I don't think you are obligated because they still have not responded to the original offer in the time you gave them. Just because you made a correction and dated your initials a different date does not give them extra time. If you would feel better about it ask your realtor to write up a withdrawal of your offer, sign it and send it over, but I don't see how this is necessary from the information you've given.
Thank you very much for the replies. The house still is a very good deal but I'm going Monday to look at a few others. I'm just worried that if I find another one I like I could somehow get stuck with this short sale one and not be able to make any other offers. The bank has been very shady throughout the past month. I don't understand why they would make a verbal counter offer, wait until I accept it, then 2 days before my inspection come back and say they don't know if they accept and have to talk it over again. I have a strange feeling they may come back asking for more money anyway. The seller has even agreed to pay for/make any repairs for the POS sale. I'm not even sure the bank will allow that since its a short sale.
Thank you very much for the replies. The house still is a very good deal but I'm going Monday to look at a few others. I'm just worried that if I find another one I like I could somehow get stuck with this short sale one and not be able to make any other offers. The bank has been very shady throughout the past month. I don't understand why they would make a verbal counter offer, wait until I accept it, then 2 days before my inspection come back and say they don't know if they accept and have to talk it over again. I have a strange feeling they may come back asking for more money anyway. The seller has even agreed to pay for/make any repairs for the POS sale. I'm not even sure the bank will allow that since its a short sale.
you said your realtor called you and told you it wasn't "official" right? But above you said the bank called to say it wasn't official? Nothing is ever official from a bank unless it's in writing, this counter-offer step you're talking about is a normal part of short sales. The bank never gave you an official approval but were negotiating the deal and will approve it now that you've countered. Also, the seller can make the repairs if they agree and you've requested them, that's also a normal part of a short sale and of course the bank would allow it. I'm not sure I understand why you're so willing to bail on the short sale, these things you're talking about are normal.
I highly doubt the bank will come back asking for more money, before they approve the short sale, they're obligated to try to get more than your offer it was for less than FMV, so they've done that and I would bet you'll have a full approval shortly.
Just hold tight, be a little more patient, and you'll likely get a great deal on a house. Sounds like your agent isn't doing a good job of helping you understand the process and helping to keep you "cool" during this no-doubt stressful time.
Once you changed your original offer, that was essentially a new offer. However, if you haven't received a written acceptance of your offer, you should be able to simply withdraw your offer by submitting your withdrawal in writing. You will need to deliver your withdrawal to them prior to an acceptance of your offer being delivered to you. If they do sign and deliver to you an acceptance of your offer, then you'd have a binding contract. (Some states may require you to sign the accepted offer for it to be valid.)
There may be a provision in your contract whereby your offer will remain valid for so many days, but absent that (or some other provision) you should be able to simply withdraw your offer prior to it being accepted.
Once you changed your original offer, that was essentially a new offer. However, if you haven't received a written acceptance of your offer, you should be able to simply withdraw your offer by submitting your withdrawal in writing. You will need to deliver your withdrawal to them prior to an acceptance of your offer being delivered to you. If they do sign and deliver to you an acceptance of your offer, then you'd have a binding contract. (Some states may require you to sign the accepted offer for it to be valid.)
There may be a provision in your contract whereby your offer will remain valid for so many days, but absent that (or some other provision) you should be able to simply withdraw your offer prior to it being accepted.
The OP already told us it is past the date given to the seller to respond by. Once that date has passed a withdrawal isn't necessary.
The OP already told us it is past the date given to the seller to respond by. Once that date has passed a withdrawal isn't necessary.
The OP stated that the contract was voidable after the passage 3 weeks without an answer--not that the contract was automatically null and void. Without the benefit of reading the contract, it is still advisable to submit a written withdrawal. Besides, by submitting a second offer--at a revised price--the OP has given evidence to the bank that he does not intend to void the contract. Better to be safe than sorry.
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