I’m not an expert, but I am in escrow right now for a house and I asked the same question to my realtor. She said, technically, yes the seller can stop the sell. They probably wouldn’t want to though because after the buyer’s inspection period is over, the buyer can sue. I don’t think buyer’s usually sue over that, though. It might not be worth the money and time.
You might want to ask a realtor, because, like I said, I’m not an expert and I may be relaying the message incorrectly.
A house in foreclosure is being sold. Once escrow is initiated can the seller stop the sell? The buyer has signed the necessary paperwork and paid for an inspection.
In advance, thanks for responding to the above question.
Posted by Natalie-VA on April 26, 2005 at 13:40:44:
I am not an attorney. Are you referring to stopping the foreclosure sale?
Just because the house is under contract (in escrow) doesn’t mean the lender has to stop the foreclosure action.
The seller should immediately contact their lender and tell them the house is under contract. Most lenders will ask for a copy of the contract and proof of funds to close. Then, MAYBE, the lender will postpone the sale giving you time to get it closed. It depends how long the seller has been jerking them around.