The listing said subject to bank approval. The seller accepted another offer that was put in (before mine) so the contract went into attorney review. We were told by the listing agent that didn’t mean anything because the bank didn’t approve it so they were still accepting offers. My husband and I put in an offer, the listing agent said our offer was better than the first one but we still haven’t heard back from the bank, since its a short sale we weren’t expecting to hear back any time soon. I think the listing actually said pre-foreclosure too. (not sure if that’s the same?) Anyhow, I checked the listing today just for the heck of it and it says contract date 2/18/09. Called my realtor, she called the listing agent and they said even though they haven’t heard back from the bank, the first offer that went in was put through attorney review so they said even though the bank didn’t approve anything they said it was nj law that they had to list it as under contract. That sounds bizarre to me. The listing agent said that doesn’t mean the other party got the house and said again that our offer was better and it was up to the bank to decide. Does that sound correct? I want to note that we got our pre-qual letter from the same bank that the house is defaulted under. And the listing agent said our offer was higher but couldn’t say by how much. Can anyone offer insight?

We had our offer accepted on a short sale home from the homeowner, and we know that the home owner’s bank have to approve the short sale, but since we have the “ratified” contract from the home owner are we now able to start the home loan approval process with our loan officer, or do we have to wait for the bank to approve the sale?

Also for the first time home buyers tax credit, I know you have to be under contract by april 30, 2010, so does that mean that we have met that requirement since we are under contract on the home because the home owner ratified the contract? Or does the requirement need the banks approval to be officially undercontract?

Note: The MLS site was updated that the house is under contract.
We ARE prequalified by the way. But of course that is just based on your income and tax credit. I am taking about the full approval aka going to underwriting, etc.

I have a signed and accepted contract by the person that owns the house but not by the bank yet does that still count under the 8,000 tax credit? The home is an approved short sale and my offer was accepted by the owner but now I am waiting on the bank(the owners side not mine) Does the contract have to be finalized by the bank before april 30th in order to qualify?

Also, about how long would it take for the bank to approve the deal? Will the bank WANT to deny me if I have offered the asking price and I have a contract with the seller? Why or why not? Thanks for your help in advance.

Cana seller back out of a short sale contract after they have sign the paper work and the bank has approved the short sale?
I am the one buying the house. I was just wondering if the people selling the house can back out. I want the house and we have a purchase contract and the bank has approved the short sale.

I put an offer on a short sale that’s been on the market for 200+ days. Its been active all this time and never went to contract. I check the MRIS listing everyday to see any updates. This morning it says “contract” for the status and the bottom says the “Sold Information” has a closing date of November 30 and its my offer as it has my agents company under the agency. Does this mean the bank approved it?

I am the buyer in this situation. Other than attorneys fees, would there be any other lost monies if the bank has not approved the offer but only the property owner?

The escrow company has received the short sale approval letter from the bank and has a copy of the signed sales agreement between the buyer and the seller. The listing agent has not sent the copy of the approval letter to the buyers agent yet. The escrow company got the letter yesterday from the bank so this is why i am asking when is it fully executable or does the buyers agent have to wait to get the letter from the listing agent?

Can I put a stipulation in the contract that it’s not fully executed until the lender approves? I don’t want to be sitting around stuck in a contract after the seller approves the price. The seller would agree to any price you throw at them….they aren’t getting anything back.
doinou - I don’t understand your answer at all. I don’t think you understand the question I’m asking. I want to know if I can back out of a short sale contract even if the seller agreed and signed. After that, the contract would be sent to the sellers lender for approval (which from what I understand, can take forever and a day).

The seller is in financial difficulties and reached out to short sale the house at the beginning of the year. Presented all of the hardship paperwork properly and has been very agreeable up till now. We have been under contract for 5 months with back and forth updates and bank appraiser visits. The bank has finally agreed to sell the house and we need to have the final P&S signed. The seller has refused and says they have filed or have begun to file for bankruptcy and plans on keeping the house. Do we have any recourse at all?
Purchase and Sales. And nothing has changed no new addendums have been added. Just needed a clean updated final purchase and sales agreement finalized by all parties with the bank agreed upon price.