Question
Short sale bank is backing out, is this legal?
I am in the process of buying a short sale home. I have a signed agreement with the short sale bank. I have started my loan processing and had the home inspected. Now the short sale bank has decided they don't like the terms of the agreement and are backing out of the original agreement. I am out about 500.00. Can a bank sign a legal document and then back out just because they have changed their minds. Granted this dispute is over 600.00 I need the seller to pay, due to the 5% high cost test. My loan can not process with out the seller agreeing to this. which they did, now have changed their minds. My real estate agent says this is what happens. I just loose. Any ideas?
1 month ago - 2 answers
Best Answer
Chosen by Asker
Sorry to say but your agent is correct.The bank has the right to back of the deal. This is a common practice if they don't like the terms. Trying to fight them and you'll loss more than $600. Move on to the next deal, there a lot out there
by marc_mgmt
1 month ago
Asker's Rating: 
Other Answers
Whatever the bank signed very likely leaves them will all kinds of reasons to back out later in the process. The bank is not a party to the contract of sale. The people at the bank that make these decisions are employees of the bank will not gain or lose money on this sale- but could lose their job if someone reviews this sale later on and finds they did something that appears to be wrong. Short sales are difficult.
by glenn- 1 month ago