Short sale, back from the dead!!

[Michael Baybut]

Hi,
I presently have a contract on a short sale. It was listed at $400k after a couple reductions. I offered $340k, which was accepted. My realtor neglected to insert a contract expire date. When my realtor asked for an extension, because things were going painfully slow, the seller refused and informed us that they had a $385k back up and if I wanted to up to $385k I could get the extension. I had about another 3 weeks on my contract left when I got the email that the bank had a foreclosure date set. 3 days after my contract is due to expire. Seller asked my if I wanted to get released from the contract. I refused thinking the foreclosure may get postponed. Can't know if the back up dropped out. Seller is now working with a new short sale lawyer who thinks he can get the foreclosure delayed. I would welcome very much on ANY advice regards where I should go with this deal.

[Joel Owens]

Commercial or residential??

The seller could care because they have multiple liens to mitigate and need the higher sales price to make it work.

Also with a higher sale price they have less of a deficiency judgement or a promissory note to deal with.

Even if just getting a 1099 they have less to show with a higher price. You can show insolvency or might qualify for no phantom gain.

The seller might not really want to sell and listed for a short sale as a delay tactic.If a commercial property they might be trying to squeeze out a few more months of cash flow before walking away.

Could be a ton of different reasons depending on circumstances.