Expert: Dick Dennis - 10/13/2010

Question
A week ago we signed an agreement of sale on a short sale in NJ. Realtor told us that seller accepted the offer.We have not received a copy signed by seller. Asked realtor for the name of an attorney in NJ, as we live in PA. He never replied (email). Asked him for info on home inspection, as we have 10 days to do that.  No answer.  Phoned today and left a message to call us.  No answer.  What recourse do we have?  We are not feeling good about this situation and wonder if we can back out of this offer.

Answer
All that has to happen (or not happen in this case), Craig, is for you to not get your copy of acceptance, if you want to back out. No problem.

However, be aware that this is a common occurance in short-sale transactions. While the seller may have accepted your offer to purchase, the seller's bank must accept the offer, too. And buyers are backing out all the time because the bank drags their feet when they see how much they are going to lose.

So, it's not only the seller, but it's the seller's lender who must accept the transaction. Now you know why it is common for a short sale to take 60, 90 days, even half a year or more. The lender in most of the cases is hoping for another offer to come in for more so they can ignore you or hope you will go away. That's the facts of life in short sale transactions.

Remember, Craig, the lender has no allegiance to you whatsoever. So, if you want to go make another offer on another house, you are certainly free to do so. But remember, if it is a short sale, you may go through this all over again. I do wish you well.


Dick Dennis
dixiedee13@aol.com