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We FINALLY received approvals from both banks on our short sale purchase. However, apparently the approval from the 2nd bank is only for 10 days, as it is an extension. Our loan officer refused to start on the loan process prior to receiving both approvals because he did not want to redo the paperwork in case anything changed. My question is, will my short sale fall through if the approvals from one of the banks expires prior to the closing date or does the binding contract supersede the approvals? My relator says it won't, but she is so incompetent that I do not really trust her.....
The second is under no obligation to keep going with the short past the date of their approval letter. The binding contract should be contingent on those short sale approval letters so it doesn't supersede anything. If the seller can't clear title because the second won't release the lien then the contract will be breached as I am sure it says it says the seller will give you a clear title.
Binding contracts don't really mean much when the seller can't move forward without the clear title for you. He's agreed to sell it and you can still buy it, and you can clear the title for him if you want. THat's always an option.
My brother was all set to buy a short sale and 2 days before close the owner filed a lis pendens against the bank for failing to negotiate a loan mod...
Have no idea on the merits... do know it stopped the sale cold...
Apparantly, the owner had tried to negotiate a loan mod for slightly more than my brother's contract price.
We were in a similar situation except the foreclosure date was the possible hold up. Anything it seems can stop a short sale in its tracts.
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