Seller backs out of short sale, does buyer have any rights?
I am the buyer, and have been negotiating with the seller and her husband on a property next to my parents in SW Orlando for almost a year. The seller is current on the mortgage with BOA and I accepted the counter offer from the negotiator. After receiving a copy of the short sale contract, I had the financing in place, and the appraiser, home inspector and termite inspector were scheduled. When they showed up to the property they were turned away. The seller's realtor told us the seller wanted to have the deficiency clause taken out of the short sale contract before she signed it and needed additional time to negotiate it with the bank. Weeks went by and we were finally told that she has decided not to sell. All other contracts the seller had signed have expired due to the time delays with BOA (Equator, Negotiator etc.)! Do I have any rights as a buyer to make this sale still happen? I sent a letter to BOA which was delivered on the cutoff date for closing, expressing my continued interest in purchasing the home (I wanted to go on record that if the sale fell through it was not due to anything I did not comply with.) In the meantime, it looks like the seller has taken on a tenant and they are repairing the issues I had mentioned throughout the negotiations. Can the seller turn around and sell the house to someone else (perhaps this new tenant), even though I was the approved buyer by BOA? I am heartbroken this didn't go through - it was the perfect location to care for my elderly parents...
Replies to This Discussion
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Permalink Reply by Vanessa Calhoun on
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Have your attorney review your Sales Contracts to determine if there were any breaches and your possible course of action.
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Permalink Reply by Bryant Tutas on
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Susan. In Florida the short sale addendum to the purchase contract normally gives the seller the right to reject the short sale if the terms are not agreeable. This also gives them the right to cancel the contract. Of course I am not an attorney and cannot give legal advice. The answer to your questions lies within your purchase contract.
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Permalink Reply by Steve Early on
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I agree - this is a question to ask an attorney. There could be a number of legitimate reasons why the seller doesn't want to go through with the transaction. but it is really a legal matter.
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Permalink Reply by Trina Gonzales on
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Dear buyer;
It's really unfortunate and I'm sorry that you were not made aware that this could happen. Please don't spend money on appraisals, termite inspections, etc until after the seller signs the shortsale approval letter sent by the lienholder/bank. The seller has the recourse. They have the right to back out and not sell if the terms aren't acceptable. Best of luck and don't give up on buying. It's a great time to get a great deal.
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They only have the rights as dictated by the terms of the Purchase & Sale agreement and since we have absolutely no idea as to what's detailed in the document, there's no way possible for us to tell this person whether or not they have a valid cause of action against the seller. It is in her best interest to consult with an attorney who will review the document and advise her of her options.
Trina Gonzales said:Dear buyer;
It's really unfortunate and I'm sorry that you were not made aware that this could happen. Please don't spend money on appraisals, termite inspections, etc until after the seller signs the shortsale approval letter sent by the lienholder/bank. The seller has the recourse. They have the right to back out and not sell if the terms aren't acceptable. Best of luck and don't give up on buying. It's a great time to get a great deal.
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