I had put a contact on short sale 2 months ago. Meawhile, I got another deal and I want move on with this deal. Seller is proposing closing date next month. I just want to know when should I let listing agent(short sale) know that I am backing out of this deal. I was thinking not to let him know till i get closing done. Can someone please let me know when should I come out of that contract?
If you do not intend to close on the 2nd transaction I would notify the other party right away. You are going to kill your relationship with that agent if you string them along, not to mention the seller is in pre-foreclosure. If you are not going to buy or buy and flip than you need to step aside and let them find another end buyer.
Thanks Jon! I do want to notify him ASAP but i am not sure whether my current deal will get through as it is a double closing.As soon as i find out there is no issues with my transaction I will let him know. BTW, do I need to notify him via email or I need to call him up? In addition, I need to know what should I do if he will tell me that the bank has approved short sale. please advise.
can you not do a double closing on the property that you are trying to back out of? why not make money of both properties?
No I am not walking out from double closing deal. There is some issue with short sale deal going on as 2nd lien is not ready to give up.So I am not sure how long it will take to get it resolved. It is good idea to buy second property as well however i need good amount of timein between first and second transaction
If your agent has done the short sale addend. it has date which nulls the contract if lender does not response by that date. if this is the case you may be already out of contract and you have to do nothing.
If you are still in contract, I hope you have option period for inspection. This might be second exit door for you.
If you are financing, ask your loan office to write you that you do not quolify for loan this might be third exit door.
Be honest with seller. His credit is on the line. Put yourself in his position and feel.
DFW
I would make sure the deal you want gets approved on your terms first before cancelling the first one.
Nothing wrong as we agents are used to buyers walking.
In every contract you should write a clause as follows:
This contract to purchase is conditional on your aprove.
No dates, Nothing. the entire purchase in conditional end of story…
They NEED to sell, you dont need to buy…
be smart, and buy right, and work with people that want to work with you… and done worry about there credit, its trashed already!