Profile picture for mrs ryca

Just put in an offer on a short sale yesterday

Asked our buyer broker if we should put in contigency clause of 30-60 day time frame for an answer....she sale no.  We have heard nothing from seller or the bank (it's only been a day).  I want to know if we can be released at any time as there is not a signed contract from all parties at the table.  Also have second thoughts on this realtor...can we have a time frame for an answer added to the contract today? Gave her a 1000 dollar check and just read that buyers usually don't do that in a short sale unless the offer is accepted by all parties.  Is this true maybe this realtor is not looking out for our best interests??
  • March 15 2012 - Orlando
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (3)

Profile picture for mrs ryca
thank you for explaining this! 
  • March 15 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

In Orlando all the short sales that we have completed were a minimum of 4 months from start to finish, and to get a response from the bank will be about 2 months.

In Florida every agent is presumed to be a "transaction broker" with no fiduciary duties unless you have a written agreement to be represented...so you should have gotten something in writing from your agent that describes the duties of your "representation" by the agent.

In 2012 most listing agents are requiring  an escrow deposit for the short sale transaction up front...when the seller signs the contract with you....which is all you need for now. 

The bank will never sign your contract, they will only APPROVE the sale and that will come 1-2 months later. Some where in your short sale addendum there will be a stipulation that you are locked in to wait for a bank response for at lease 45-60 days (or could be longer depending on what your contract says).

To get out of the contract sooner would require the seller to agree to release you, or you might loose your $1000 deposit.

Eve
  • March 15 2012
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I can't speak for Florida, but in Minnesota the association of Realtors wrote and had approved by the state a 'short sale contingency' document which gives a drop dead date for the offer as well as language that specifies whether or not earnest money is offered before or after bank acceptance.

As long as the bank hasn't approved the sale (and I presume they haven't moved quite that fast!) both parties can mutually agree to cancel the purchase agreement (and presumably give you your earnest money which is held in the listing agents trust account).

Personally I don't think 60 days is long enough to get acceptance on a short sale. But banks are moving more quickly to get them done. If you like the house and don't see anything else as good for the money, you might consider just going forward with the existing offer.
  • March 15 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.