When Does A Short Sale Become a Binding Contract?
There is often confusion when writing a contract on a home or condo that is a short sale. Many people think you have to wait for an answer from the bank before you have a binding contract.
A Short Sale Contract becomes binding when the Buyer and Seller (not the bank) accept all terms of a Purchase & Sale Agreement and sign off on all Exhibits, Contingencies and/or Counter Offers. A Binding Agreement Date must be filled in on the Purchase & Sale Agreement or on the final Counter Offer and all timelines must be met within the terminology of the contract. Unless otherwise noted in the special stipulations of the Purchase & Sale Agreement or in the Counter Offer/s, all timelines concerning earnest money must be met and if the deal falls through a Termination & Release is still required and will need to be signed by both Buyer and Seller for earnest money to be disbursed.
***The banks approval is a Contingency to the contract and is most often secured by a Bank Addendum that must also be signed by the Buyer and Seller.***
So you will have a fully executed Purchase and Sale Agreement, with one outstanding contingency…THE BANK’S APPROVAL!!! When you will get that approval is anyone’s guess. So when writing your Purchase And Sale Agreement, you might want to put an extended date in for the closing, knowing full well it may be a couple months before you get a response. Your agent should also make sure you have an opportunity to terminate your agreement and have your earenest money refunded if there is no answer from the bank after a certain time. This is a negotiation point, and must be a date that both the Buyer and the Seller agree on.
Yes, short sales are a challenge, but if you are getting an incredible home or condominium, the wait may we well worth it.
Speechless Sunday – A My Midtown Mojo Feature
What is that phrase, a picture is worth a thousand words? Indeed. Since I’ve started blogging, I’ve taken more of a “note” of the area around me, and try to capture it in pictures. I can now walk past some places and say, “I remember when that was (fill in the blank)” and I have the picture to prove it!
So today, we will start a new feature at MyMidtownMojo called, Speechless Sunday. Now, speechless implies that nothing is said. So, most of the time, don’t expect any words from me, just a picture of a moment in time captured.
Here’s our first one….
METROPOLIS MIDTOWN ATLANTA — October Market Report 2010
Metropolis Midtown Atlanta is probably best known as the building that started it all in Midtown Atlanta condominium construction. When first proposed, one tower was to be apartments and one condominiums. The first tower sold so quickly that the developers quickly converted, and sold the second tower as condos as well.
There was much hype as the building was being built, since it was the first new condo highrise to be built in Midtown Atlanta, and talk about the cranes as they lifted trees up to the 7th Floor Amenity Deck.
But the market is taking its toll on Metropolis Midtown Atlanta as it is on many others! Here’s a look at what October, 2010 had to say…
Active Listings: 16 with a range from $650,000 to $129,900 giving an average of $239,606. Of those 16 listings, 5 are short sales. None are foreclosures.
Pending Listings: 4 homes are Under Contract. Two of these are foreclosures, and one is not. One is a short sale, and it went Under Contract in August, 2010 with a proposed closing date of February, 2011!!! Yikes!
There were no sales in October, 2010.
Follow this link for more information about Metropolis Midtown Atlanta.
Search For Metropolis Midtown Atlanta Condos For Sale
If I can assist you with finding a home in this building, or any of the Midtown Atlanta and Buckhead condominiums, please contact Thomas Ramon Realty!
VIEWPOINT MIDTOWN ATLANTA – LAST CALL PRICING!
It’s no secret that I’ve had a love affair with Viewpoint Midtown Condominiums! Just ask any of the 6 homeowners and investors that we have helped buy in this Midtown Atlanta landmark building.
From the finishes and the floor plans to the pool deck and Peachtree Street location…it’s just got it goin’ on! But those times are quickly coming to a close. Soon, your chance to buy in Viewpoint will be limited to a resale home.
Now, there is nothing wrong with a resale home…but ya gotta admit, there IS something about NEW, and being the first person to live in your condo!
So, it’s not surprising given the popularity of this building that the inventory is getting down to…Last Call!
And they have got some great prices on the remaining homes!
If you want to call Viewpoint Midtown Atlanta home, now would be a good, great time to do it!
For More Infomation about Viewpoint Midtown, contact me today and I’ll show you why I love Viewpoint and you will love the view too!
