Home Buying in Las Vegas>Question Details

mrtroesh, Home Buyer in Las Vegas, NV

question on shortsale escrow close date.

Asked by mrtroesh, Las Vegas, NV Mon Mar 18, 2013

I am a buyer currently in the middle of a bankruptcy short sale....We recently signed an addendum to our file for a set date for escrow to close. We were told by our people doing the shortsale that it is in the hands of the director of HUD in Oklahoma for final approval. Wondering what happens if we don't get the approval letter by the set date for escrow to close. we were told the addendum was created by the selling party/bank if that helps. We do understand that being a bankruptcy sale we have to wait an additional 30 days after approval to close.

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Answers

6
Hi Mrtroesh,
The term 'short sale' does not refer to the length of time required to get approval from the Seller's Investor to sell "short". Each transaction is unique, but there are common issues that occur, such as never knowing for certain what the Close of Escrow (COE) date will be.
In this case you may be presented with another addendum to extend the COE until the 30 days after the HUD Director forwards the approval.

I reccomend you touch base with the party representing you in this purchase at minimum once a week.
0 votes Thank Flag Link Mon Mar 18, 2013
If you want to stay in the deal, just keep signing the addendums offered to you by seller. Each bank is different in their follow through on this. Stay in good communication with your agent and selling agent representing bank. Stay on top of dates. Matthew D'Ercole
0 votes Thank Flag Link Mon Mar 18, 2013
Hi mrtroesh. Close of Escrow for short sales almost never close on time. Its totally up to the lenders. Just keep submitting escrow extension til it actually closes. Bankruptcy, same thing. It has to go through the process. Hang in there. Keep in close touch with your agent.
0 votes Thank Flag Link Mon Mar 18, 2013
Hello Mr. Troesh,

Until you get the Short Sale Approval Letter from the current lienholder aka Bank that states that the Short Sale of the property has been approved with an Approved Purchase Price, a scheduled close of escrow date of when the deal should close. You will have to continue to sign addendums to extend the close of escrow date.

In my experience the bank usually gives the Buyer about 30 days to close escrow. Once the lienholder aka Bank has given the Short Sale Approval Letter. This is usually do, to give the buyer time in doing their final processing of their loan, appraisal, inspections, etc. If the buyer has not done so already.

A question I would ask to the Listing Agent is if the Seller's current loan is a FHA loan? If it is, that could be the reason why the Director of HUD in Oklahoma has the final say on the Short Sale Approval.

Best regards,

Chris Harrison
Barrett & Co. Realty
702.592.9510 mobile
Chris.Harrison@msn.com
0 votes Thank Flag Link Mon Mar 18, 2013
thank you for your response...the info was unclear from our agent as to applying more addendum to extend closure dates to secure our part of it..and didnt want to lose it because the seller bank didnt approve before the set closure date.
Flag Mon Mar 18, 2013
You need to discuss this with your buyer's agent. Until you receive short sale approval, the "proposed" closing date has little, if any relevance.
0 votes Thank Flag Link Mon Mar 18, 2013
Usually an extension is asked for by your realtor. Usually it is granted. Sometimes there is a penalty to the buyer for not closing on time. Most of the time, that can be negotiated away with an addendum from your realtor.
0 votes Thank Flag Link Mon Mar 18, 2013
thank you......were just kinda lost in the process and confused as to if we could lose the home if the seller doesnt approve before escrow was set to close and what to do....our agent is reluctant to give us any information...just a "the files been sent for approval", "were waiting" and "we might here something soon"
Flag Mon Mar 18, 2013
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