Different Lenders have different requirements for their approval process on a short sale. More often I am asked for a Prequalification Letter and that is usually sufficient. See if the short sale Lender will accept the Prequalification Letter from your Lender. To ask for a loan commitment from you is a rather onerous requirement if the short sale is not pretty far along in the approval process (BPO and Appraisal completed and ALL documents submitted by Seller). If they are asking for the commitment and they have just begun the process, you might consider walking away because the negotiator for the Seller and/or the Lender might just drive you out of your mind.
I would contact a local real estate professional to save time and money.
(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.)
Any broker representing you and any broker representing a seller should both have proof of your ability to perform.
I'm sure if you were selling you would want the same knowledge and expect it of your agent to have it.
If you are looking for a buyer agent to represent you in this transaction, we would be happy to help!
Sandy Johnson, Broker
or email me at
I have seen the banks that hold the notes on these distressed properties (in your case a short sale) ask for the prospective buyers to demonstrate their commitment to buy by asking them to put upwards of 5% into escrow....before beginning the short sale approval process.
To ask for a buyer to get a full mortgage commitment, including paying for an appraisal, however, is in my opinion extreme.
I don't even know if YOUR lender will provide a mortgage commitment without having an approved short sale. Unless I am missing something, I don't see that you could possibly provide a commitment before receiving an answer to the short sale.
Good luck and please keep us posted!