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Replies (14)
- Cindy LaPeer ABR, e-PRO,SFR, Cdrs, "Houston Metro Pro"
- Contributions:2239
A short sale can take a long time - 30 to 45 business days at the least. It's not been that long for you, so it's quite possible that the agent is being truthful. As far as your earnest money goes, you will need to read back over your contract. Do you have a buyer's agent who is representing you? If so, consult with him/her.
- Risa Liebster, "Toluca Lake Homes"
- Contributions:36
Claire, I will be up front and mention that I specialize in traditional home sales and purchases not short sales. Still, I would like to try to help. First, you should have an agent on your side who works to keep things running as smoothly as possible. Second, if you choose not to hire a qualified short sale buyer's agent (which I feel is a mistake), it might be worth speaking to the seller's broker. They certainly should be concerned about their reputation and may be able to help move things along. Third, whether or not you get your deposit back depends on the wording of the contract. An experienced short sale buyer's agent should be able to help you navigate these choppy waters. Good luck.
- ClaireYFan
- Contributions:2
Thanks.
I know it takes a while for short sales. I am not comfortable he lied about getting approval already. It waste my time to looking arround for other houses.
Do you think I can get away with my deposit back?
I know it takes a while for short sales. I am not comfortable he lied about getting approval already. It waste my time to looking arround for other houses.
Do you think I can get away with my deposit back?
- Michael Emery, "MikeEmery"
- Contributions:7262
If the contract states that the purchase agreement requires approval from both the home seller and the bank and you only have approval from the home seller, you don't yet have a fully executed contract because you are lacking the signature of the bank.
You should be able to request a cancellation of the purchase agreement. Whether or not you will get back your earnest money is dependent on the language of your purchase agreement. In some purchase agreements, when the deal falls through, the homeowner retains the earnest money.
Talk to your agent about whether it's possible to cancel the purchase agreement and whether you can get back your deposit.
And if time is of the essence to you, don't look at short sale homes. It takes longer to get approval on short sales when compared to traditional and bank owned home sales.
You should be able to request a cancellation of the purchase agreement. Whether or not you will get back your earnest money is dependent on the language of your purchase agreement. In some purchase agreements, when the deal falls through, the homeowner retains the earnest money.
Talk to your agent about whether it's possible to cancel the purchase agreement and whether you can get back your deposit.
And if time is of the essence to you, don't look at short sale homes. It takes longer to get approval on short sales when compared to traditional and bank owned home sales.
- Connie Wildasinn, "Connie Wildasin"
- Contributions:1178
you never should have opened up an escrow with out the approval in writting in hand.. many times it can take months to get the actual written approval.. not uncommon.. check with your agent on how you wrote your contract and what your contingencies are, I am sure though that you should be able to get out if the seller can't preform..
- Oren Barkan, "YourFamilysRealtor"
- Contributions:75
Yep. I agree with the others. It sounds to me like you are not dealing with any agents at all. Typically we suggest that no money be deposited into escrow until we see approval in writing. If no agents are involved, give the escrow officer a call. Tell them that you would like to cancel the agreement and have your deposit returned immediately. Then, get yourself an agent to help you find a new property.
- H1N1
- Contributions:28
What is the benefit for the seller's agent? Open the escrow and get the deposit before the short sale bank approval, If the bank not accept or counter offer, what will happen? Did the buyer loss?
- Jim Willen, "jimwillen"
- Contributions:4
You need to read over your contract and look for a paragrapgh that is labeled "Earnest Money" or "Remedies". If there is not a paragraph specifically labeled find the paragraph that deals with earnest money by reading each paragraph carefully. Also if there is any addendum or rider attached to the contract that defines the terms and responsibilities of each party in the short sale read that very carefully as well. These should tell you what you need to know about your earnest money. Also, short sales can take 90-120 days for bank approval so I wouldn't be surprised that you haven't heard anything yet. If you want the house you'll need to patient. IF you can't afford to wait you should move on quickly so they can find another buyer. Good Luck!
Jim Willen
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Jim Willen
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- Pat Samson, "NVA Realtor"
- Contributions:39
Oren is right on track. Very unual for a listing agent to require an escrow in this case. Best of luck!
- lynrosect
- Contributions:129
If you do not have a signed acceptance of your offer from the bank, then you should be able to cancel your offer at anypoint before the banks signature is on paper. The verbal agreement is not valid for the sale of land/houses. Call the listing agent and/or broker and place your revocation in writing. As stated above, if the contract is not fully executed in writing by the bank and seller...you should be able to get your deposit back. I agree with the agents above. You should hire an experienced buyer broker to help you through the process.
- Heather Underwood, "Heather Underwood"
- Contributions:113
Short sales are frustrating because the details of the sale are in the hands of the bank. And because the bank is not in the business of doing real estate they do not communicate many of their answers in writing. However, if the listing agent places you in escrow you have an advantage in knowing that the bank is being presented with your offer and will work with your offer as they go through the various tiers to get formal approval. Your patience is normally rewarded with a sales price that is somewhat below market.
- Dianne Hicks, "Dianne Hicks"
- Contributions:11
Clair
Although I do not think escrow should have been opened, I do not think you agent is lying either. Short sales take a long time, they are anything but short. I know that it is difficult and I can only say... Anyone that puts an offer on a short sale needs to also put a patient hat on. I would say the average short sale is about 4 months, some shorter and some much longer.
You are not alone in your frustration. Everyone gets frustrated with them but I have seen it over and over again... when they get their house, they are very happy.
So, think it through, did you really want this house? If the answer is yes, try to stick it out and if the answer is No then read your contract and talk it over with your agent on what your options are. Most contracts are written with buyer protection in mind.
Good Luck!!!
Although I do not think escrow should have been opened, I do not think you agent is lying either. Short sales take a long time, they are anything but short. I know that it is difficult and I can only say... Anyone that puts an offer on a short sale needs to also put a patient hat on. I would say the average short sale is about 4 months, some shorter and some much longer.
You are not alone in your frustration. Everyone gets frustrated with them but I have seen it over and over again... when they get their house, they are very happy.
So, think it through, did you really want this house? If the answer is yes, try to stick it out and if the answer is No then read your contract and talk it over with your agent on what your options are. Most contracts are written with buyer protection in mind.
Good Luck!!!
- John Valdez, "John Valdez"
- Contributions:419
I would stick with it. Unfortunately the banks have all the control. The new HAFA program may help with the short sale process but no likely. Good Luck!
- Risa Liebster, "Toluca Lake Homes"
- Contributions:36
Claire, Did you ever get your deposit back? It seems that short sales will be part of the real estate sales landscape for quite some time to come and I, like many motivated agents, are learning everything that goes into these transactions to best serve our clients. Hopefully if you find yourself again involved in a short sale, the advice in this thread will have served you well.
I am trying to buy a short sale house, but want to cancel escrow now.
The seller agent asked me to open the escrow. I think he was lying about he got an approval at that time. It turned out to be only a veral approval. I have being waiting for a month now and still no official approval. He keeps saying we can have it any day now. I don't think I can trust him anymore. I want to cancel the escrow and walk away. Do I get my deposit back?
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