The Buyer Backed Out of Your Rocklin Short Sale - Now What?

By
Real Estate Agent with Roseville CA & Rocklin CA Short Sale Agent Broker DRE#01247876

The Buyer Backed Out of Your Rocklin Short Sale - Now What?

The Buyer Backed Out of Your Rocklin Short Sale - Now What?

Nothing is worse than getting a Rocklin short sale approval from the bank, only to have the buyer back out at the last minute.  Unfortunately, this is happening a lot lately.  A lot of buyers can't follow through with a sale because their circumstances change, they can no longer qualify for the loan, or they're scared that they are overpaying and prices are still falling.  

What happens when a buyer backs out of a Rocklin short sale?  It's important to get another offer right away.  Put it back on the market at the approved short sale price.  If there are no offers in a week, lower the price and make sure you are priced at market value. 

Your Rocklin short sale agent should submit the new offer package to the same bank negotiator already assigned to your short sale file.  Most banks will allow the bank negotiator to continue working on the short sale file with a different buyer.   This is a good!  If the terms of the short sale are similar, the negotiator can usually obtain a new short sale approval within 2-14 days. Then the buyers will proceed with the sale, just like a traditional sale, and can close escrow within 30 days.  

Some banks require a different negotiator be assigned to the file.  This takes more time.  Your Rocklin short sale agent needs to submit the entire short sale package to the short sale department right away.  It normally takes 1-2 weeks to get a new negotiator assigned to the short sale.  The negotiator will then process the package again to get a new short sale approval.  If your bank requires a new negotiator after the first buyer backs out, you are looking at 2-4 weeks to get another short sale approval for your new buyer. 

When a buyer backs out of an already approved Rocklin Short Sale, it definitely slows down the short sale process.  However, an experienced Rocklin short sale agent can get a new offer and short sale approval in 1-4 weeks depending on the bank.  Often inexperienced agents do not know what to do when the first buyer can no longer go through with the property.  Loosing your first short sale buyer, doesn't have to be the end of the short sale! 

See if you qualify for a Rocklin Short Sale.

The Buyer Backed Out of Your Rocklin Short Sale - Now What?

Posted by

Keller Williams Realty-Roseville

916.205.2265

www.AllansHomes.com

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*Allan Sanchez is a licensed real estate salesperson in the state of California and does not give legal or tax advice regarding short sales and other real estate sales.  Please consult a real estate attorney or CPA for any legal or tax questions.

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  1. Donald Bradbury 10/18/2011 01:45 PM
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Topic:
Home Selling
Location:
California Placer County Rocklin
Tags:
rocklin short sale agent
short sale agent rocklin
short sale specialist rocklin
rocklin short sale expert

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Rainmaker
23,620
Maria Picardi Kenyon
Re/Max Tri County

Hi, Allan.  I haven't to date, had any buyers back out of a short sale contract; but how about when the seller backs out??!!  I'm seeing more and more sellers who decide they'll stay in the home until the bank removes them.  Their mindset is why pay rent when I can live here for free!  Heck, my credit is already ruined!

October 18, 2011 01:37 PM
Rainmaker
162,689
Allan Sanchez
Rocklin & Roseville, Short Sale Agent
Roseville CA & Rocklin CA Short Sale Agent

Maria-

You bring up a good point.  In CA sellers are more protected in a short sale than with traditional sales.  Sellers can back out of a short sale up until the last minute.  I haven't had a seller do that but in the MARS disclosure it says a seller can back out at any time. 

Even in a short sale that closes, most sellers are living rent free for 6 months to a year.  The advantage to a short sale is that sellers can buy again, usually within 2 -3 years.  In a short sale it's a minumum of 3 year, often much more.  Most of my clients short sale because they want to buy again and because they feel an obligation to "do the right thing" and avoid the dreaded foreclosure!

Thanks for the comment!

October 18, 2011 01:44 PM
Rainmaker
161,669
James Muhammad
Keller Williams Realty

Allen, this is a very, very good Blog Post about Short Sales. and while all of what you said is absolutely correct I have also seen out In the Inland Empire the same that Maria said. Buyers also back out of transactions as well.. Thank you for sharing!

October 18, 2011 02:16 PM
Rainmaker
162,689
Allan Sanchez
Rocklin & Roseville, Short Sale Agent
Roseville CA & Rocklin CA Short Sale Agent

Thanks James.  You and Maria have inspired me to blog about sellers backing out of short sales!

October 18, 2011 08:49 PM
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Rainmaker
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Allan Sanchez

Rocklin & Roseville, Short Sale Agent
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