Can you pull out of a short sale?
When you make an offer to buy a short-sale listing, the sellers must accept your offer, forming an actual, binding contract, before it can be submitted to the bank for review and approval (or not). So, yes, you can withdraw your contract on this short sale and move on to another property.
Because the short sale approval process is often long, drawn out and lender approval can’t be guaranteed, the buyer can back out if it takes too long. A buyer can walk away from the transaction if the lender fails to respond or approve his offer within the time period specified in a short sale addendum.
Can a property be classified as a short sale?
Just because someone advertises a property as a short sale does not mean they have been approved for one. They may think they qualify for a short sale, but unless they are actually approved by the bank or mortgage lender, this classification means nothing.
What are the risks of buying a house in a short sale?
Another risk of a short sale is losing out on the property to on all cash buyer or a buyer who is able to put down a large down payment. When agreeing to a short sale, banks and other lenders prefer to deal with these types of buyers. They see them as less risky than a buyer who needs to get a large mortgage in order to purchase the property.
What should I do if I want to buy a short sale?
If you want to buy a short sale, try to write an offer that’s as close to the amount owed as possible. The process can be frustrating—agents may need to reassure the buyer and seller that patience is necessary. When a lender approves a short sale, they’re agreeing to sell the property for less than the outstanding mortgage balance against it.
How does a listing agent do a short sale?
After the seller accepts the offer, the listing agent will send the listing agreement, the executed purchase offer, the buyer’s preapproval letter, a copy of the earnest money check, and proof of funds to the bank. They’ll also submit the seller’s short sale package. The short sale process will be delayed if the package is incomplete.
