Home Buying in Cranston>Question Details

Gloria & Ryan…, Home Buyer in 02911

Wwhat does this mean.... "SALE SUBJECT TO LIENHOLDERS' APPROVAL."?

Asked by Gloria & Ryan G, 02911 Sun Dec 7, 2008

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Hi G,

"Subject to lien holders approval" means that the home is being marketed as a short sale-which means that the list price of the home is less than what the sellers owe on their mortgage. In order for this home to close at the list price or less, the lien holder (sellers bank) must approve the sale. This could be a lengthy process (sometimes 3-6 months) and there are no guarranties that the lien holder will approve the sale at full list price or less. I hopes this helps. If you have any further questions or would like some help in your search, let me know. I work out of Warwick, and do most of my business in Warwick, West Warwick, Coventry and Cranston. I also am very familiar with short sales/foreclosures and will be happy to explain the process to you. Either way, you should have a buyer agent looking out for your best interests. Good luck!
0 votes Thank Flag Link Mon Dec 8, 2008
It means the bank has to give the final approval to close. It is a foreclosure property.
0 votes Thank Flag Link Sun Dec 7, 2008
Usually a bank per listing agreement will have the agent post those comments in MLS. It will require the bank approval to close in most instances is a short sale, however foreclosures NOW have additional paperwork where the bank can investigate the potential new buyer.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Dec 7, 2008
This means the current market value of the home is less than the amount of the mortgage. Therefore, the bank must approve the sale and the seller will not net any money from it.
Web Reference: http://www.alaynaberek.com
0 votes Thank Flag Link Sun Dec 7, 2008
G,

"Lien Holder Approval" is an indication this sale is a "short sale" that requires the bank to approve selling the property for an amount that is less than the amount owed to the lending institution.
0 votes Thank Flag Link Sun Dec 7, 2008
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