Booby traps in short sale contracts
I got an email from a reader who signed a Purchase and Sales Agreement on a short sale. He was unhappy when his agent called to say there would be a two-week delay in closing. He was paying cash. He had no lawyer. What should he do?
First thing, if you don’t hire a lawyer you should read your Purchase and Sales Agreement. Most people don’t. They almost all have an automatic thirty day extension to perfect title (get liens and encumbrances off the title.)
Some of the other things that show up in auction or short sale agreements:
1. Non-refundable deposits.
2. The investor’s right to accept another buyer and cancel your transaction at any time up to closing.
3. The investor’s right to change the price or cancel the transaction at any time up until closing.
4. The investor’s right to just cancel your transaction at any time up to closing for no reason at all.
5. The investor’s right to take as much time as they please to get back to you about any issues that come up before closing.
I strongly advise you to have a lawyer at your side if you are working with short sale or foreclosure property.
What other booby traps have sprung in your short sale or foreclosure contracts?
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