Zillow Advice: Home Buying - Short sale, amendment to original agreement, and earnest money help http://www.zillow.com/advice-thread/Short-sale-amendment-to-original-agreement-and-earnest-money-help/444611/ Zillow Advice | Zillow Real Estate I have "bought and sold" ... http://www.zillow.com/advice-thread/Short-sale-amendment-to-original-agreement-and-earnest-money-help/444611/ I have "bought and sold" more than $10 million in short-sale transactions and was a former bank Vice-president and have worked at Wells BoA and citi. Enough said. You said, &nbsp;"I read through the contract several times and I just don't see any other way out of the contact (unless the lender doesn't approval our offer). I don't know what planet you are living in but IF THIS IS A SHORT-SALE YOUR CONTRACT IS NON-BIDING AND CAN BE CANCEL ANY TIME WITHOUT RECOURSE, EVEN AFTER APPROVAL BY THE BANK. ...Furthermore, the California Realtor's Association Short Sale Addendum (line 1D), specifically<br/>states that "&hellip;if by short sale contingency date, the seller has not received Short Sale Lenders' Consent satisfying 1B, Seller may in writing cancel this agreement&hellip;" YOU CAN CANCEL ANY TIME BUT YOUR AGENT WILL TELL YOU, "YOU CAN'T". BECAUSE HE OR SHE WILL LOSE the COMMISSION thus such action is a total mis-representation due to greedy factor. You can simply write a request that you cancel any and all contracts previously entered, unequivocally. It will be canceled. Second, you can't blame on the bank. You have to blame on the Listing Agent whom can't do his or her job. If the Listing agent has not close more than 12 short-sale transaction in the last 12 month which she or he is the LISTING AGENT OF RECORD. Don't bother. She simply does not know what she or he is DOING. You are simply wait for thing that WILL NOT HAPPEN and you will be TOTALLY disappointed, in the end. Third, you are better off finding something not a short-sale or have the short-sale approved then have the listing agent call your agent to inform you that bank approved the short-sale. You can then decide you want it or not. Yes YOU CAN DO THAT absolutely. If you withdraw your offer and there is no other offer then the bank will PROCEED with the FORECLOSURE on the house and listing agent will be back to square one with no buyer. You can continue with your offer without making a deposit. You could make the deposit when IT IS APPROVED.<br/>&nbsp;PLUS YOU DO'NT NEED TO SIGN ANYTHING. JUST ASK FOR YOUR DEPOSIT BACK, right now. Later, WHEN IT IS APPROVED, THEN HAVE the agent CALL YOU TO SEE IF YOU WANT IT OR NOT. Just make sure that you are PRE-APPROVED for a mortgage loan is good enough. You have to take matter into your own hand and do not let the AGENT run or dictated your life as in this case they are and they will just blame "the bank" instead of "themselves" for whatever mistake they made or their ineptness. You are simply better off find and work with the agent that has LISTED on record and CLOSED on record "more than 12 short-sale transactions" in the last 12 months. Or have your agent verify with the listing agent of such material facts. You need to take control and don't let people push you around. Otherwise, you are the one be sorry for your family. The bank is not jerking you around, it is the agent who does not know the process, so just tell the agent and insist to "i want my deposit back and continue with the short sale processing" in the meantime, you could start looking for other houses and once you found one that has surety to close then you could just disconnect your previous short-sale offer if it is not yet approved or you changed your mind. Oh by the way, you don't need to run by a real estate attorney. I hire real estate attorney when there is a mis-presentation. Real estate attorney will not help you buy a house or solve your problem but only create more answer to a new problem. So you don't need to check with the attorney. This is not matter of law. Attorney don't have all the answers and some attorneys are stupid and don't even know what a "short-sale" is and 97% of the attorney don't even know the process. Just get your money back and move to a new place you be fine. If the agent wants to cancel you then let them just tell them that bank will accelerate the foreclosure on the seller side and have them contact you when it is approved. In short-sale there is no obligation, as it is written in C.A.R. or if you are in OTHER State, it is non-binding. Just Google it. You will be able to get your money back and if you need help to "GET YOUR MONEY BACK" just Google me, i could help you for FREE without any obligation of your part. That is my gift for Memorial Day to celebrate our Vet:-)&nbsp; &nbsp; Thu, 31 May 2012 06:33:00 GMT http://www.zillow.com/advice-thread/Short-sale-amendment-to-original-agreement-and-earnest-money-help/444611/ 2012-05-31T06:33:00Z What you are telling us is&nbsp;common ... http://www.zillow.com/advice-thread/Short-sale-amendment-to-original-agreement-and-earnest-money-help/444611/ What you are telling us is&nbsp;common with short sales.&nbsp; Very few short sales close in 6 weeks, if you want to stay with the short sale you need to sign the addendum.&nbsp; If you want to create your own more favorable terms, I suggest you run it by a real estate attorney, but at the same time, the bank does not have to agree to those terms.&nbsp; Your buyer agent should have informed you that short sales take a long while and they are totally set to favor the lender not the buyer.&nbsp; The buyer's advantage is that he proibably is buying below market value.&nbsp; If you are on a timetable, then you need to purchase a property that is not bank owned or short sale.&nbsp; Good luck with whatever you decide to do.&nbsp; Tue, 29 May 2012 17:10:00 GMT http://www.zillow.com/advice-thread/Short-sale-amendment-to-original-agreement-and-earnest-money-help/444611/ 2012-05-29T17:10:00Z I wouldn't sign the ammendment ... http://www.zillow.com/advice-thread/Short-sale-amendment-to-original-agreement-and-earnest-money-help/444611/ I wouldn't sign the ammendment if you haven't yet.... you can extend the agreement with a clause you still can walk away and keep your earnest money. Have your agent draft one of those up and submit that listing agent.<br/><br/>When my sellers need to do a short sale I make sure they sign off on every paper they receive since in the end, they have no say, their lender will set the rules and terms of the contract. Simple as that. And obviously I don't want the buyers to walk away since that will stop the process of the short sale and we are back to square 1. <br/><br/>Signing this amendment you might loose your earnest money if you happen to come across another property and like to move on.<br/><br/>Most banks are moving pretty fast with a short sale. I had one recently that closed within 3 months and 1 day from LISTING date.. not offer date and that was because the buyers needed a 10 day extension..not my sellers. ;0)<br/><br/>But there are still a few banks out there that are much slower. Banks that need to talk to their investors f.e. if the house is owned by an investorgroup and the bank 'manages' the property for them. <br/>I although feel that you need to sit down with your agent and ask him/her to really check out how much the listing agent is doing to keep this one moving forward. Maybe put a little pressure on. I have done numerous short sale transactions and frankly, if the listing agent stays in good contact with the bank and keeps in touch at least weekly, short sales tend to move through the process a little faster. <br/><br/>The more complete the short sale package and building good report with the case managers from the lender are essential for that as well. Tue, 29 May 2012 15:34:00 GMT http://www.zillow.com/advice-thread/Short-sale-amendment-to-original-agreement-and-earnest-money-help/444611/ 2012-05-29T15:34:00Z This is something that you ... http://www.zillow.com/advice-thread/Short-sale-amendment-to-original-agreement-and-earnest-money-help/444611/ This is something that you should discuss with your own agent. It sounds like from your second sentence that you have one.<br/><br/>Most contracts allow you to cancel at any time, but it's considered a "default" of the contract, and you will likely loose your earnest money.<br/><br/>As hpvanc mentioned previously, if you haven't accepted the amendment, then you aren't obligated to sign it. &nbsp;But, you need to really work with your agent to determine if you can cancel by the already negotiated cancellation date. We can't offer very specific advice without reviewing the existing contract (or knowing all the other minute details).<br/><br/>To answer your question about legal precedence, yes, you can draw up an amendment like you describe, but the seller has to agree, and the bank could still ignore it.<br/><br/>Also, keep in mind that banks are slow in processing short sales. This is fairly common..sometimes lasting up to six months. &nbsp;I would put pressure on the listing agent to talk with the right people and let them know they're going to lose the deal if they don't move quickly. &nbsp;Banks are weighed down by a lot of offers, and there are likely some that just simply want to wait so you're more invested in the deal and accept terms more favorable to the bank. Keep in mind, they are a business and the seller has defaulted on their agreement with the bank. &nbsp;The bank doesn't have to help the seller at all, so they're trying to find a set of terms that works for all three parties.<br/><br/>You will do well to start looking at other houses you might like to get since you're under a deadline. &nbsp;You probably can't put in a contract on any until you cancel your current one, but you can be prepared when you can withdraw the current contract.<br/><br/>Best of luck!&nbsp; Tue, 29 May 2012 15:09:00 GMT http://www.zillow.com/advice-thread/Short-sale-amendment-to-original-agreement-and-earnest-money-help/444611/ 2012-05-29T15:09:00Z Did you agree to and sign ... http://www.zillow.com/advice-thread/Short-sale-amendment-to-original-agreement-and-earnest-money-help/444611/ Did you agree to and sign the amendment?&nbsp; Generally amendments to a contract have to be signed by both parties to go into effect.&nbsp; If you haven't signed it your agreement should still expire per the terms of the original contract.&nbsp; If you want to send an amendment with your terms to extend to the selling party, the seller may agree but is not legally obligated to agree and sign.<br/><br/>If you have signed the amendment you will need to contact an attorney to find out what your options are at this point. Tue, 29 May 2012 05:42:00 GMT http://www.zillow.com/advice-thread/Short-sale-amendment-to-original-agreement-and-earnest-money-help/444611/ 2012-05-29T05:42:00Z