Profile picture for user2757036

Can I back out of a short sale after seller accepts offer?

I put an offer in on a townhome that was a short sale on February 9th (not an approved short sale) with a closing date of June 30, 2014. From the get go, this was a nightmare. The house listed on the market January 18th, and my realtor tried making several appointments to see it but we were told they werent accepting showings yet. Two weeks later we were finally able to see the home, and we find out we were delayed due to the home owners wanting to "clean". The home was filthy, and looked the same as the pictures. We put an offer in the next day and it took the listing agent about another week to get all the paperwork signed and submitted by her seller. Last week I recently found out an ex-partner of mine that has harassed me in the past lives directly across the street. I spoke to my realtor about rescinding the offer, but she is telling me we cannot do that because we are in a legally binding contract and can only rescind our offer if we forfeit our earnest money deposit, and also risk being taken to court for "further damages". She said another option would be wait it out until June 30th and hope the bank doesnt accept, or try to find something wrong in the home inspection. (which will be highly unlikely, this home is only 5 or 6 years old) Ive done some research online and have found that we are able to rescind our offer and can keep our deposit, but my realtor is telling me otherwise. Can someone please help? At this point, I'm willing to lose the $1,000 deposit, but im not sure why they would take us to court for damages. This seems like it happens all the time. I dont want to be forced to purchase a home where i wont feel comfortable living, but it seems like that is what will happen.

Thank you for your time!
  • April 09 2014 - Smyrna
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Answers (9)

Profile picture for jwiss
lf you really like the place buy it. if your ex harrasses you file a restraining order. possibly he might have someone else and moved on. option b hire Tony soprano if you get my drift.
  • October 28 2014
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If the offer has been accepted by the bank and you have signed the short sale approval, you are bound to the terms.  However, it sounds like you haven't been fully approved yet.  I would agree with Donna Schilling and talk to the broker of the agency.

  • October 28 2014
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There are many terms and conditons and deadlines that must be met or mutually agreed upon to be extended or revised. Its usually not too difficult to find a valid reason to terminate the transaction for almost any variation outside of the specific terms of the purchase agreement. Your realtor should advise you on approaching condition deadlines. An honest discussion betweeen agencies may avert any legal complications. Seek the path of least resistance and get the proper consultation from legal counsel if needed. You should be able to find a valid way out!
  • April 09 2014
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Profile picture for user2757036
I forgot to mention in my question that the sellers accepted the offer. I'm sorry, I tried rewriting this several times to be sure it made sense!!
  • April 09 2014
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Profile picture for descrs
An offer is nothing but an offer until it is accepted.  And then, it must be accepted in writing with all signatures in order to be enforceable in a court of law.  You can withdraw an offer at any time before the seller accepts the offer.  It is NOT a contract until all terms have been agreed upon and the offer is signed by all parties.  Some agents use offer and contract interchangeably and they are NOT the same thing.  It sounds like you do NOT have a contract yet.  Put your request to withdraw the offer in writing to your agent with a cc to the agent's broker-in-charge.  And you might just want to call the agent's broker-in-charge and let him/her know what is going on.
  • April 09 2014
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Profile picture for JustinLeffew
Until accepted, an offer is just that: an offer. Sounds like your Realtor is playing a game she shouldn't be unless your contract truly states something specifically about this. 
  • April 09 2014
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Profile picture for wetdawgs
One can always find something wrong on a home inspection, even with new construction!

If the owners are planning to do a short sale, i.e. short the lender, you don't have a contract until the bank accepts the purchase price.   If the owners are planning to bring money to closing, you may be okay
  • April 09 2014
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review the short sale addendum that you should have received and both seller and buyer are required to execute as a condition of the sale for less than owed...it will disclose your rights..

it is always best to notify the listing agent at once of your buyers intentions not to proceed with the purchase so she can quickly put another transaction on it...



  • April 09 2014
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Not being able to read the short sale contingency in your offer, there should be one there, I can only guess the contract is contingent on the bank accepting the offer. Until they do you should be able to terminate the offer and get any money back. Short sales can be a nightmare, most are.

 
  • April 09 2014
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