Withdraw of a Short Sale Offer

We submitted a contract to buy a short sale property 3 months ago. We have not had a reply back. Can we cancel or withdraw our offer?

2 Answers

Before I answer this, I have several questions for you to think about.  What is the reason you are buying this property?  Is it going to be an investment or your primary residence? How well do you like it and do you really want it? 

The problem is not the seller but the seller's lender.  Lenders are getting inundated with short payoff requests daily and do not have the necassary staff to handle them.  So 90 days is not uncommon.  If you really want the house, my advice is to be patient. 

You could try a different approach.  You could contact the seller (through your agents) and suggest he or she get a forensic mortgage audit done.  These audits look for hidden fraud charges and errors that could force the lender to the negotiatiing table.  Lenders don't like hearing from audit companies, especially mine, because it means there maybe litigation on the horizon.  They respond by contacting the borrower usually within a week or two of receiving a letter asking for a copy of the file.   This response is usually to give the borrower what they want because they know the cards are stacked against them in a court room.

You need to get in contact with your real estate agent at this time.  They should be keeping you up to date on what is going on with the short sale.  Your contract (offer to purchase) should also give you a time frame in which this should of been accepted or denied by the seller and the bank.  Many of the banks are very busy reviewing short sale information that have been submitted to them.

If your real estate agent is not helpful you may want to get in contact with a Attorney specializing in Real Estate.  An Attorney will be able to go through your contract and give you your options at this time.