In North Carolina the Short Sale Addendum allows the Buyer the right to unilaterally terminate the contract and receive the earnest money back at any time prior to the Seller notifying the Buyer of lien holder approval. If the parties have negotiated additional time for “due diligence” beyond bank approval then the Buyer has that extra time as well….
- Tag: short sale buyers
What Agents Say
I have heard real estate law described as “happy law.” That actually makes sense because in a normal real estate closing there may be some bickering over curtains but in the end the buyer is getting the house and the seller is receiving money.
In a short sale, however, it is important to understand that the attorney definitely has one foot over the line into ugly law. The Seller is losing their house and usually not receiving any money at closing. Additionally, the Seller may or may not have to pay back the deficiencies. Yes, the Buyer is getting the house at a really good price but they have to endure the stress of the short sale, which can be long and frustrating. The bank that owns the mortgage or is servicing the mortgage can be difficult, uncommunicative, uncooperative and just plain nasty. So even if the short sale attorney is successful in obtaining the short sale and managed results that can only be described as amazing, they shouldn’t expect a fruit basket. They can end up like the divorce attorney down the street where nobody is happy with them in the end because war is ugly.