A Short tale about short sales.
A listing Agent lists the short sale.- Sellers delivers lender’s required documents to the listing agent
- The listing agent markets the home as a short sale.
- Banks typically do not approve a short sale until the bank receives an offer from a buyer.
- A buyer’s agent submits a buyer’s offer with short sale contingency. The short sale contingency puts certain elements of the contract on hold until the seller’s creditors approve the short sale based on the seller’s and buyer’s collected information.
- Seller signs the buyer’s offer.
- The listing agent sends the seller’s package, the accepted offer, and a HUD to the short sale bank.
- Wait & wait
- Some buyers can’t wait and after the and cancel the transaction
- Listing re-lists the homes as an approved short sale
- If the purchaser is still in, the buyer’s agent rushed to get any inspections done and has the buyer’s lender order an appraisal as soon as possible
- If the there is an inspection, and that investigation turns up issues the buyer may be free to walk, or the bank may decline to negotiate repair cost and start over.
- If the appraisal comes in low or cannot appraise due to a condition or defect, the bank may refuse to approve a lower sales price.
- Property condition or appraisal issues may result in some buyers being unable to qualify.
- If the purchaser is still interested when the short sale approval letter arrives, will need move quickly towards the settlement to complete the wait & hurry-up process.
Posted on February 15, 2017 at 6:11 pm by Tom Saporito
