Monday, June 15, 2009

Short Sale contract terms- Pay Attention!!

Our local board of Realtors requires a Short Sale Addendum with every purchase offer submitted. This addendum states in no uncertain terms that the seller is not liable for the following:
A- Delays caused by Lender,
B- Failure of the Lender to approve the contract
C- Failure of the Lender to complete the short sale after approving the contract, or
D- Any costs or expenses associated with the delays or Lender's failure to approve the contract, or to complete the short sale after approving the contract.

It doesn't take a brain surgeon to determine that, for a buyer of a short sale, this can be a high-risk situation.

However, as a buyer of distressed real estate, you do still have the standard right to inspect the property. Within an agreed upon number of days after the inspection, a buyer can cancel the contract due to inspection results, but would not be refunded any inspection fees.

Remember: There is NO penalty to the lender or the seller for failing to complete a signed purchase contract on a short sale. You would receive any earnest money deposit back, but you would lose other monies and could end up with nothing, not even a house, and certainly no "GREAT DEAL".

You can review a list of current Foreclosure homes on my website, updated every Friday:

www.MyPinellasParadise.com

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