Home Buying in 78645>Question Details

Debbie Jenni…, Real Estate Pro in Lago Vista, TX

Why don't Short Sale Lenders respond more quickly if it is a Cash Transaction?

Asked by Debbie Jennings, Lago Vista, TX Fri Dec 28, 2012

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It is ALWAYS cash at the closing table.
Cash only effects the time in which the BUYER can close.
Shaving a week or two off of the duration of a short sale adds NO tangible value.

In a short sale, time is never a element to consider. It will take as long as it takes and not a moment sooner.

Now, be aware, every bank has a different process.
For those local, portfolio lenders who have approved a short sale, cash may make a small difference.
0 votes Thank Flag Link Tue Sep 23, 2014
Short Sale does not mean "Quick Sale." it means the money the mortgage company will get is short of the amount they are owed.

The Mortgage and other lien holder(s) are being asked to take a partial payment, and forgive the rest of the debt owed by the seller on the house being sold. The mortgage companies are in no hurry to let the home seller walk away from their debt. They will ask for a lot of proof that the homeseller has a good reason and really cannot pay, and that the house can't be sold for enough to pay off the mortgage, etc.
They do not even start to work on making that decision until after the homeowner brings a buyer contract and fills out the paperwork to start the short sale process.

If there is more than one loan or lien holder, each one has to agree on what they will get and what losses they will take,
0 votes Thank Flag Link Tue Sep 23, 2014
Often they are looking for tape sale. AS IS, bulk, no contingency.
Did you waive the inspection have solid deposit in escrow showing you can close quickly?
I have offers being considered 16% higher than approved value(higher than highest sold recently), 96 hour COE on purchase contract.

That took 2 more months. Since it was higher than others the lender finally gave the OK, 72 hour COE.

I know boa will not make a decision and will counter back several times each time higher.
0 votes Thank Flag Link Fri Dec 28, 2012
They still have the same number of investors and possibly PMI companies to secure an approval from for this less-than-full amount due, no matter if there is a cash offer or loan involved.

Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
0 votes Thank Flag Link Fri Dec 28, 2012
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