Legal Question in Real Estate Law in Virginia

I have a signed purchase contract on a home advertised as a short sale. Come to find out there are two lien holders on the the house. The first lien holder approved the sale and provided an approval letter. The second lien holder; however; has failed to provide an approval letter and we have had four closing dates cancelled due to not getting this approval. The real estate agent has stated for over two months that there is a verbal approval, but can't get them to provide the approval letter.

Q: Since it is a short sale and we do not have both lien holder approvals, can I opt out of the contract legally. In other words, is it a legal contract without lien holder approvals? and If I withdraw my offer will I loose my earnest mony? I initiated the purchase contract in June and it is now Nov without the official approval of both lien holders.contract


Asked on 11/02/09, 11:44 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

In view of what's apparently already occurred with this proposed short sale, you should make a written demand that the transaction be completed by the end of the month (November 2009)or the sale cancelled and all of your earnest money returned at that time.

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Answered on 11/07/09, 1:12 pm


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