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Put my house up for short-sale, but I have no money to move. Can I withdraw from short and let the home fall into foreclosure.

Orlando, FL |

Got a notice of pre-foreclosure due to nonpayment, I offered to do a short sale to help save my credit some. While the home was being listed for short sale, i was attempting to save that mortgage money up for when i had to move. I ended up getting my hours cut at work and wasnt able to save any money. I fell behind in bills and consulted with a bankruptcy attorney who told me that if I was going to file, that I shouldnt worry about doing a short sale since the bankruptcy will wipe out the deficiency balance. So with that I wondered if there was a way I could withdraw the short sale on my home. Just today a 2nd offer came in on the home (1st offer fell thru last month). I havent signed the contract yet. Can I get out of this and let the bank continue with foreclosure or am I stuck?

Attorney Answers 3

  1. Best answer

    You can absolutely get out of the short sale. At this point you have not agreed to sell the home. Have your Realtor withdraw the offer if it has already been submitted to your bank. If it has not been submitted to the bank just cancel your listing contract. The bank will continue its foreclosure process and with proper planning you can get the time you need in the home to save money. Please feel free to set up a time with us to discuss all of your options.

    Allison Moscato, Esq.
    John Roberts & Associates, P.A.
    1053 Maitland Center Commons, Suite 100
    Maitland, FL 32751

  2. You aren't required to sign a contract with the buyer, so if you haven't done it yet, you should be able to take the house off the market. You may, however, owe the realtor a commission.

  3. Be careful of owing a commission to a realtor who has "produced a ready, willing, and able" buyer.

    Then you will have to list the realtor in your bankruptcy petition as well.