Lenders today are so predictable.....lol...
"Third Party Approval" - here you go.
This is part of the short sale process. The homeowner owes more on the house than it can be sold for. This is called upside down on their loan...
The owner can't pay and is trying to get the lender to approve the sale and release the lien so someone else can buy it with a clear title even through the lender will not get all of their money.
The lender has to approve the homeowner asking for the short sale - they will try a modification to see if the house hold income supports the loan, if it doesn't, there is a good chance it will be approved.
A very serious mistake sellers, buyers do not understand
. A Short Sale does not stop the foreclosure process.
After a house is gone the loan is sold back to the investor if there are no buyers at an auction.
This week have spoken to three people in different states, who found out they no longer owned their home. Two used a Realtor do their short sale, and one did it on their own. I am not making this up - more and more I hearing Realtor's that are doing short sales. Are actually making it worst for the home owner.
They lack the financial experience of knowing what the bank is looking for on the approval process. They also lack the experience of negotiation, moratoriums, and no further recourse. Their job is to sell and list homes, not just filling out paperwork and faxing it to the bank and waiting for the approval.
The Bank has to approve the amount of the offer. There are times even if you offer full price that does not ensure that you will end up with the house. When there is a requirement for a third party approval - a decision has to be made by an outside individual (company). That has no relationship to the situation.