Home Buying in 32068>Question Details

Me, Home Buyer in 32068

hi my question is regarding short sale. we have offer the same amount as the sale price of short sale house

Asked by Me, 32068 Wed Jun 10, 2009

we have 1st lenders written approval,and the loan we are seeking is just 50% of sale amount with rest as cash.we have home inspection schedule this week.all we still leasing appartment and its ending with this month,with no chance to extend for less than 12 months.all we have is 30 days do you think we could make closing before our lease expires? we will get 2nd lender approval soon.What should we do to make the process move faster?

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I hope you are using a Realtor to represent you in this short sale as your buyer's agent. If you do have a Realtor, he/she should be in constant communication with the listing agent to understand what is happening with the seller's banks and when to expect each event to happen.

Having the first lender's approval is a very positive sign, but no deal is for sure until you get all lien holders' acceptance. Some second lien holders are not willing to accept minimal payoffs (usually less than $5,000 regardless of what is owed them) and can be impediments to getting a short sale approved. Some second lien holders will only grant a lien release and not a full forgiveness of debt which may cause a seller to back out of the contract because they can not obtain the debt relief they are seeking (a lien release allows the property to be sold but does not forgive the sellers of their debt and they must sign a promissory note to pay the debt in full in the future).

As noted below I would not give up your apartment without knowing 100% that your deal will close by the time your lease is up. You should do everything possible to negotiate a month to month extension of your lease to ensure you have a place to live (if the deal falls apart you may be months away from finding another home to move into).

If you are not being represented by a Realtor as a buyers agent then you are pretty much at the mercy of everyone else in the process.

Good luck, and I hope you close by the end of the month without difficulty.

Scott Sullivan
Prudential Network Realty
3535 Highway 17, Suite 10
Fleming Island, FL 32003
C: 904-327-5676
O: 904-269-1716
0 votes Thank Flag Link Wed Jun 10, 2009

I would advise you not to relinquish your lease prior actually receiving the keys in your hand. Short sale are tricky due to the fact that timelines are generally longer than a standard sale or even bank repo. I have seen short sale closing take anywhere from 3 months to 1 year.
0 votes Thank Flag Link Wed Jun 10, 2009
Be sure to ask to speak to the manager from the 2nd lender (lienholder). They're usually the one that makes the decision. Be the squeaky wheel!
Tara Bebinger
Keller Williams Consultants Realty
0 votes Thank Flag Link Wed Jun 10, 2009
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