A Short Sale Contract is STILL a Contract!
Short Sales often scare buyers and sellers often bury their heads in the sand until they suddenly get a wake up call that they are in trouble.
If you are upside down in your mortgage, having trouble making your mortgage payments and need help with a loan modification or if you need to sell your property, Advance Realty Anne Arundel Inc. services most of the state of Maryland and we work very closely with people who do loan modifications and short sales. Don't wait, call us today and we can get you back on track.
If you are thinking of buying or selling a home give me a call today and we'll talk about the market conditions and what your home could possibly be worth in today's market place if you are thinking of selling. You can save thousands by listing your home with Advance Realty Anne Arundel Inc.. If you are considering buying a home, there is no better time than now to buy. The tax savings and wealth building a lone is worth the plunge into todays market.
In keeping with saluting our heroes, during 2009 Advance Realty Anne Arundel Inc is waving administrative fees active duty military, retired military and the families of fallen military, as well as policemen, firemen and emt's. If you enter into a contract by the New Year's eve Advance Realty Anne Arundel Inc. will waive the admin fee at settlement. This is a $350 savings. If you are thinking about buying or selling a home give Advance Realty Anne Arundel a call and receive full service real estate assistance from an experienced agent. Our office is open 7 days a week and we can be reached at 410-761-1550.
June Piper-Brandon, Broker - Advance Realty Anne Arundel Inc
Hi folks. Allison Stewart wrote a very good post this week titled WALK THIS WAY... CAN BUYERS JUST WALK AWAY FROM A CONTRACT?. Allison’s post is talking about Buyers who feel they can just walk away from a Short Sale transaction and get their deposit back because they are just tired of waiting. They feel the contract is not binding.
Here is my opinion on why Buyers feel this way. They are misinformed.
A Short Sale contract is no different than a regular contract with the exception of the 3rd party approval contingency. This contingency is related to the Lender approving the “Short” NOT approving the contract. The lender has no authority to approve the contract since they are not a party to the contract.
They do however have the authority to approve or disapprove the Seller’s request for a “Short” payoff.
A contract is binding and legally enforceable when:
- It has a legal purpose
- The parties are legally competent
- The offer has been made and accepted
- There is consideration
- The parties have willingly consented to the terms
There may also be contingencies in the contract. Contingencies are: Conditions which must be met if a contract is to be performed.
Some contingencies may be to protect one of the parties:
- Survey
- Inspections
Some contingencies may need to be removed in order for the purchase to be completed:
- Title
- Short sale approval
- Financing
The Short Sale approval is just one more contingency in the purchase contract. And just like any other contingency it should have a time period to be removed.
If it can’t be removed in the time allowed then the parties can either extend the time period or cancel the contract and return the escrow deposit.
If it can’t be removed at all because the Short Sale was denied then the contract becomes “null and void”. The Seller is now unable to perform. This is no different than when the Buyer’s financing is denied. He too is now unable to perform.
Folks....this stuff is NOT complicated. It’s Real Estate 101. Stop trying to complicate matters by treating the Short Sale as anything other than what it is…..a contract contingency.
If your Short Sale listings are not closing. Get training. You’re doing something wrong.
If your Buyers are getting frustrated then you are not setting the right expectations.
These are my thoughts. What are yours?***I am NOT an Attorney and this is not legal advice. I am however a Licensed Florida Real Estate Broker and this IS my opinion.
Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.comhttp://ShortSaleSuperStars.com
***The content of this blog is solely my opinion***
Listen to a sample of the 5 part webinar:
Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved
Comments(4)