Can we back out of a short sale | Let’s Get Real Estate | July

Dear Jan, We are buying a home that is a short sale. It’s taking a long time for the seller’s bank to OK our price. Our agent is out of town. Can you tell us if we can get out of this sale?

Dear Jan,

We are buying a home that is a short sale. It’s taking a long time for the seller’s bank to OK our price.

Our agent is out of town. Can you tell us if we can get out of this sale?

MCL & HL

 

Dear MCL & HL,

Good question. My answer is one of those answers we all hate to hear: “It depends upon what your contract says.” The forms Washington brokers use are the same. But different brokers will use different forms and execute them in different ways. I’m guessing there is a form that is part of your contract specifically addressing the sale being a short sale (A short sale is when the seller paid more for their home than its current value. When they sell, the bank will not recoup all of its money.)

On this form there is a place to mark whether the buyer “may” or “may not” withdraw prior to being told that they have the seller’s lender’s consent. If it is marked “may withdraw,” you are free to look at other homes. Otherwise you must keep moving forward.

You may still be able to get out based on items like your inspection. When we brokers leave town, we usually have someone cover for us. Call your broker’s office and have whoever is covering for your broker help you analyze your situation. Short sales are not for the weak of heart. Hang in there!

Jan Zufelt