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Under contract but in limbo

One of my clients is under contract on a short sale, but thinking about placing an offer on another property.

There are two things that my client needs to know if they decide to do this.

1. they could be under contract on two properties, but they would be violating a clause in contract #1, and before they get a preapproval for contract #2, their lender would want to see a termination of contract #1, unless they didn’t tell their lender about contract #1, so that means that they do indeed need to be working with two lenders who don’t know about one another – they could do this if they want to put two earnest money checks in play, and as long as they understand the other legal risks. They might lose their earnest money(ies), and/or they might get sued if they don’t protect themselves.

2. they can obtain enough cash to buy both and move forward without consequences

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