Home Buying in Hemet>Question Details

Angela, Home Buyer in Menifee, CA

I am purchasing a short sale home, the seller/bank excepted my offer, and know Im told they will change the short sale to standard sale, is this ok?

Asked by Angela, Menifee, CA Sun Nov 27, 2011

Short Sale converted to Standard w/ VA Funding.

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7
Michael Cheng’s answer
You should be fine. Just have your Realtor read through the contract to make sure there are no adverse terms with the change.

I've seen situations like Laura described, but if the bank accepted your offer, it should not be a concern here.
Web Reference: http://www.archershomes.com
2 votes Thank Flag Link Mon Nov 28, 2011
You've got some great answers below. I just want to add that the reason why this was a short sale to begin is because the house is "underwater". So in order to close escrow, lenders would have to take a hair cut on the loan balances. I can't imagine why a seller would want to throw good money after bad except to save their credit, and only in situations where the house is not too much underwater. I suppose it may be worth it to the sellers to pay a small amount of extra funds from their own pocket to make the deal and get rid of their mortgage problems than to damage their credit rating by making this a short sale. Doing a short sale is usually a better option to the homeowners than to allow the banks to foreclose.

But changing it to a standard sale should not have any impact on the deal. However, if you had agreed to pay for certain repairs that are customarily sellers thinking doing so would make it easier to get the short sale approved, you might want to renegotiate that condition and make the sellers pay them instead.
1 vote Thank Flag Link Mon Nov 28, 2011
Angela,

As long as this adjustment has not impacted the terms of your agreement there should be no problem. It would appear that the seller has found the funds necessary to pay the difference and bring the sale to a normal sale.

Consult your agent regarding this change and its effect on your agreement.

Good luck,

Bill
1 vote Thank Flag Link Mon Nov 28, 2011
Well, the only way to change it to a regular sale is to pay off the loan, so your agent needs to check how they are going to do that! If they are bringing in funds from another source to pay off the loan, you need to know that they have enough funds to do that before you pay for any inspections. Have your agent check it out!
1 vote Thank Flag Link Sun Nov 27, 2011
Angela,

If you're the buyer, whether or not the short sale is now standard should have no impact on you. The seller just gets to minimize the damage to their credit rating.
Web Reference: http://www.archershomes.com
1 vote Thank Flag Link Sun Nov 27, 2011
The only difference between a short sale and a standard sale is the amount of money the current bank/lien holder on the property receives from the sale. Either they receive the full amount owed by the seller (standard sale), or they receive less than owed by the seller (short sale).
0 votes Thank Flag Link Sat Feb 25, 2012
Be careful because there is some people out there that do double escrows. They get the seller to sign over the note... then they negotiate a short sale and then sell it as a standard. Read everything you receive very carefully and if you are unsure get legal council.
Web Reference: http://www.laura4homes.com
0 votes Thank Flag Link Mon Nov 28, 2011
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