Thread: Short Sale - Need Advice Please

Originally Posted by Brady@Windermere

Hey there all! I am currently representing a buyer who is purchasing a home which is distressed. The buyer and seller reached mutual acceptance 45 days ago and the contract was sent to BoA immediately. We have been waiting for approval since. Today I received an e-mail from the listing agent with a rescission attached. She said another offer came in 3 days ago and was a much better price. Here is the language in the SS addendum :

"Seller may keep the property on the market and accept offers from other Buyers. However other accepted offer(s) will be placed in backup position using proper backup form from the multiple listing service. Seller may submit backup offer(s) to seller's creditors."

Should I advise my client to seek legal counsel? Does BoA have the ability to not approve the SS for my client's offer and then turn around and approve the second offer? The language seems convoluted to me. I don't want to advise my client to seek an attorney if there is no legal leg to stand on. I greatly appreciate any insight or advise. Thank you.

This is a tough one. It's all about interpretation. I think my advice to my client would be to find another home and move on. Real estate law varies from state to state especially when it comes to short sales.

If you really wanted to pursue this particular property which is likely going to be a waste of time for you and your clients, the first thing I would do is contact your local real estate commission and possibly the city/states department of finance and ask them the same question you asked us.

Best of luck!

Do you have a broker? What do they advise you?

B of A is probably the very worst at processing these transactions, months upon months is not unusual with them.

The language in your addendum seems not to allow an automatic right of cancelation by the seller. It does allow them to accept other offers "in a back up position". Certainly once the information about a higher "net" to the lender is provided to the lender, the likely pricing for your buyer would increase, however, it would then be your buyer's choice about proceeding or not based on the pricing that was available from the lender.

Given current market conditions, it may be your buyer's best option to simply find a different house. It may be YOUR best option, in the next transaction, to modify the language in the addendum to NOT allow sellers to continue to market the property.

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