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I have been in the process of trying to buy a short sale since july, finally, through 2 leins an investor and PMI the sale has been fully approved. The bank issued an approval letter that went to the sellers attorney...that was 2 weeks ago! I can not move forward with an inspection and my lender until I have the paperwork but the seller's attorney just keeps giving my agent excuse after excuse. I keep hoping all of this is going to go through and we'll be in the house by the new year, but am starting to get frustrated. At this point we'll have to ask for an extension because the appoval letter is only good for 30 days! What is the deal?!!! What could be stopping these people from wanting to get this moving, the house is empty!
What could be stopping these people from wanting to get this moving, the house is empty!
Really? An empty short sale is highly unusual.
Short sales are by definition a stalling tactic by people trying to cling to their home.
Until the bank has foreclosed and the property is offered as an REO... sit on your hands.
Even with the REO's... there will be plenty of pain and annoyance for home-owning buyers.
if you know that the short sale has been approved, why do you need a copy to move forward? Is getting a copy of the approval in your contract with the seller?
if you know that the short sale has been approved, why do you need a copy to move forward? Is getting a copy of the approval in your contract with the seller?
My agent claims that she feels more comfortable having the approval letter in hand before having us invest any money in the property. My worry is that because PMI is involved that the approval comes with a promissary note for the sellers that they won't pay. Do the sellers have to sign anything once the deal is approved by all parties? Or once it is "fully approved" in equator does that mean all those details have already been worked out? I'm worried that my agent might not be experienced enough when it comes to short sales.
My agent claims that she feels more comfortable having the approval letter in hand before having us invest any money in the property. My worry is that because PMI is involved that the approval comes with a promissary note for the sellers that they won't pay. Do the sellers have to sign anything once the deal is approved by all parties? Or once it is "fully approved" in equator does that mean all those details have already been worked out? I'm worried that my agent might not be experienced enough when it comes to short sales.
I wouldn't move forward on inspections until you have the written approval. And remember, "full approval" doesn't mean a whole lot. The bank isn't actually legally bound to take that amount. They can, and do, rescind written approval at any time.
if you know that the short sale has been approved, why do you need a copy to move forward? Is getting a copy of the approval in your contract with the seller?
It is standard procedure in my area to see the actual approval letter so that the terms are clear to the buyer, such as seller bringing money to close and required close dates. Escrow makes them sign a copy of it at close anyway.
Yes, but the terms of the short sale are between the seller and their lender. Just like the approval/terms from the buyer's lender are not given to the seller.
Here we get the approval letter and both buyer and seller signs because it contains terms for both sides. We don't consider the property "under contract" until the short sale approval letter is signed by both parties.
When looking for homes last summer, all of the vacant homes were short sales...the people had moved out because of the inability to pay on mortgage. Several of them eventually went into foreclosure, but one of them was being "maintained" with the exception of the mortgage payments, everything else was paid by the seller/owner; taxes, association fees, utilities, etc.
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