I’m hearing more and more about short sale horror stories. Below is just one example from a potential condo buyer who emailed me:
After much searching I found my dream condo, so I made an offer on this short sale and the seller accepted. I opened escrow with $1,000, but then found out that the seller filed for Chapter 13 bankruptcy. My REALTOR® advised that this property cannot be sold until the bankruptcy case is settled, and gave me an Addendum to Purchase Agreement to sign which will cancel the agreement and allow me to get back my escrow money. But I don’t want to cancel the agreement. I want to enforce it!
My lawyer informed me: While you may want this property, you may not get it. you made an offer on a short sale. This requires that each lender that made a loan on the property approve the short sale – which the lenders are not required to do.
Do you know of any short sale stories that you would like to share?
