Home Buying in Tolleson>Question Details

www.jimbev07, Home Owner in Tolleson, AZ

Our home has been approved for a short sale from our lender. We don't know when closing is, but how long can we stay here.

Asked by www.jimbev07, Tolleson, AZ Fri May 10, 2013

We just don't want to have to move at the last minute. we are in the process of packing. do we have 30 days? If so, 30 days from what date?

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Answers

7
You will want to ask your Realtor how long the buyer has to close and if you have to allow the buyer to have possession at the close of escrow based on the terms of the contract.
0 votes Thank Flag Link Sat May 11, 2013
You should reach out to your Realtor and get some facts regarding the situation. Most of the answers should have some legal backing within the documents that pertain to your sale.

Every comment we make without having full knowledge of your documents is just speculation.
0 votes Thank Flag Link Fri May 10, 2013
You're agent should be able to tell you this. It should have been on the purchase agreement you signed when you sold it to the buyer and if that date was just a guess because you didn't know if it would be approved or not the short sale approval letter will also have a "must close on or before" date in it.

Typically once I have a short sale approved we look at the bank date to close by, refer to the original purchase agreement and draft a new addendum between buyer and seller with the exact date to close.
0 votes Thank Flag Link Fri May 10, 2013
Hello Jim and Bev. Your question needs just a bit of clarification.

Do you have it listed for sale on the MLS with a Realtor?

Do you have a contract in-place from a buyer? I'm assuming so since you said "we don't know when the closing is to occur...".

IF you have an agent helping you (he/she listed your property for sale and handled the short-sale negotiations), then PLEASE consult with him/her. They'll be able to answer your question and help you establish a time-line of when you need to vacate the home.

IF you do NOT have a listing agent, then this might help; please take a moment and answer a few questions so the agents on this forum can assist you:

Is this a 'pre-listed and pre-approved' short-sale from your lender?

*What this means is...did your lender reach out to you or did you contact your lender about a possible short-sale (PRIOR to listing it with a Realtor) and after reviewing your financials they determined that you DO qualify and the lender then sets the price and occasionally the terms?

Once you have an approved short-sale from your lender that has an existing contract in place, when it will close depends on several things.

>What date does the approval letter state that it must close by? ALL short-sale approval letters contain this info along with the approved buyers name(s).

>How was the contract written? Does it state somewhere on the contract or short-sale addendum that it must close within a certain number of days AFTER you received lender approval of the short-sale?

>How is the buyer paying for the purchase? Cash? New financing?

Cash buyers can typically close in under 14 days, sometimes a bit quicker.

Buyers using FHA, VA or Conventional financing typically need 30-40 days to close.

Hope that helps!

Jim Mitchell
Realty ONE Group
PH: 480.231.6769
Jim@TheAZRealtor.com
0 votes Thank Flag Link Fri May 10, 2013
Have you asked your Realtor? The answer will depend on how the buyers are financing the purchase.
0 votes Thank Flag Link Fri May 10, 2013
Now that you have an approval from your lender, it becomes a "normal" sale.

The buyers' lender can now order the appraisal and then submit their loan package to the underwriting department (once the Buyers get them up-dated pay stubs, bank statements,etc.). Once this process is completed there will be a Closing Date set, at which time you and the Buyers will need to go in and sign documents. Those documents will then be reviewed and the title company will be instructed to record the new Deed in the Buyers' names. At that time, the home is no longer yours and you will need to move out; just as with any transfer of ownership.
0 votes Thank Flag Link Fri May 10, 2013
Your answer depends on how the home is being paid for. If its cash you can expect to close in a few short days after your lender approves the offer terms. If its finance you will want to speak with the buyers loan officer on a weekly basis to get an update on the loan progress.
0 votes Thank Flag Link Fri May 10, 2013
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