Short sale in Virginia.

[nft999]

What is the name of your state? Virginia
I am in a contract to buy a home. The offering price was accepted at $20K less than they paid for it 1 year ago. The ratification was stipulated an approval of the mortgage company accepting a short sale. My realtor (and I) neglected to put a time limit on the 3rd party approval. My contention is we don't have a contract until the 3 rd party agrees to the short sale. My broker advises I hire an attorney as the current sellers refuse to release us( or so they RA tells us. Do i have a contract? How long can this go on?

[FlyingRon]

Originally Posted by nft999

What is the name of your state? Virginia
I am in a contract to buy a home. The offering price was accepted at $20K less than they paid for it 1 year ago. The ratification was stipulated an approval of the mortgage company accepting a short sale. My realtor (and I) neglected to put a time limit on the 3rd party approval. My contention is we don't have a contract until the 3 rd party agrees to the short sale. My broker advises I hire an attorney as the current sellers refuse to release us( or so they RA tells us. Do i have a contract? How long can this go on?

It would be necessary to read the contract. However a contract with a contingency is still a contract. You most likely DO have a contract.
Shame on you for not putting a time limit on the contingency.

I'd send a demand letter to the seller and the mortgage company involved demanding them to approve a closing date no later than whatever you can stand or a return of the earnest money. If that doesn't move 'em, you will need a lawyer. The above is the first step the lawyer would go through anyhow.

[tranquility]

The court could supply the term in this instance. I'd say they'd say, a reasonable time.

[OnceUponATime]

Originally Posted by nft999

What is the name of your state? Virginia
I am in a contract to buy a home. The offering price was accepted at $20K less than they paid for it 1 year ago. The ratification was stipulated an approval of the mortgage company accepting a short sale. My realtor (and I) neglected to put a time limit on the 3rd party approval. My contention is we don't have a contract until the 3 rd party agrees to the short sale. My broker advises I hire an attorney as the current sellers refuse to release us( or so they RA tells us. Do i have a contract? How long can this go on?

The quickest 3rd party approval (short sale) I've seen is 3 weeks, the longest is still going at 64 days. As I'm sure you're broker told you, in Virginia, unless the offerer has received signed/initialed copies back of all pages and addendums to the contract, it is not ratified. If you received a contract and it is stamped "third party approval required" or similar, without the approval of the 3rd party is not not ratified. The offerer can withdraw their offer at anytime prior to ratification. If the seller/agent/broker refuses to accept the withdrawl, in writing from the offerer, I would ask your broker to write a letter to the seller/broker advising them of the Virginia Contract Law, and that if you must retain an attorney you will also seek all attorney & court costs. If they still won't budge, to the lawyer you must go, as Ron and Tranquility stated.