donnaattusca…, Home Buyer in Boynton Beach, FL

If someone approved for an FHA loan And a broker comes to me to sign them up A)it it true the lender is more apt to sell them my home than an

Asked by donnaattuscany, Boynton Beach, FL Wed May 22, 2013

Investor (approve a short sale to me the seller)
B) it takes the same amount of time for the sale with an FHA preaproved loan than someone with cash as an investor or just purchaser in cash

Help the community by answering this question:


If I understand your question, you are wondering whether cash offer or a mortgage offer will affect the amount of time it takes to get a short sale approved.

The answer to that question is that short sales take as long as they take, regardless of whether the payment will be in cash or via a mortgage.

The lender does not care, as long as promise of payment is there. Also, on a short sale, it is the seller who signs the initial contract. Then that contract is brought to the bank, where it moves from department to department, waiting for someone to make a decision.

Eventually, several months later, someone approves or disapproves of that contract. If the contract is approved, the buyer with the mortgage, or the buyer with cash, whichever one it is, makes the required escrow deposits and proceeds toward closing.

Marc Jablon, the Jablon Team
RE/MAX Complete Solutions
0 votes Thank Flag Link Thu May 23, 2013
Hopefully you are working with a Realtor that specializes in short sales that can help with all of these questions and can represent you on the sale. They are there to go over the offer and help you make the best decision.

Good luck!

Tracie Whillock
0 votes Thank Flag Link Thu May 23, 2013

I am assuming you meant that the buyer has a pre-approval for an FHA loan which may not be your best option on a short sale. So much depends on your property, it's condition and what type of buyer you should be targeting. First, make sure that any buyer you enter into a contract with has a current pre-approval that states income and assets have been verified. A generic pre-qualification is not worth the paper it is written in.

Your best bet on a short sale is a cash buyer but the pool of those buyers is more often looking at properties that make a solid investment property. If there are condition issues with your property that may be flagged during an FHA appraisal you will more than likely be running into issues. The loan will not get through underwriting without those items corrected and re-inspected and I am assuming you do not want to put any of your money into the repair of the property prior to closing. Add to the fact that the bank may not approve a closing date that would allow for the time many of the larger banks and FHA loans may take to get cleared. You should consider requiring than any buyer be fully pre-approved by an end lender with in-house underwriting who can do deals quickly to ensure a smoother transaction between the time you receive written bank approval of the short sale and closing.

Without knowing more information on your lender(s) and loan amount(s) projecting how long it might take is nothing more than a guess. The process is not easy and must be driven by a listing agent teamed with a qualified legal firm in moving the file and documentation or you will be heading for potential problems. Keep in mind that many short sales never close but I would probably keep the short sale approval period contractually at 120 days on most transactions.

Hope this helps....

Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
0 votes Thank Flag Link Thu May 23, 2013
Each Investor of the loan the lender services have different guidelines , but the lender is apt to go for the offer that nets them more. The lender will not work on more than one offer at a time anyways and you and your agent or negotiator needs to choose the offer they will present. The bank is not a part of the contract they just APPROVE and does notg choose they either accept the short sale or come back for more money or would not pay some sexpnses or pay a reduced amount, that is where we have to negotiate to make it happen, even the HOA past dues have to be negotiated, Investors used to be disadvantaged by the lenders a while ago but today they do not care they approve short sale to anyone.
0 votes Thank Flag Link Wed May 22, 2013
Cash or loan makes no difference to the lender. It is really the bottom line that the lender is concerned with. The lender wants to get the most for the home.
0 votes Thank Flag Link Wed May 22, 2013
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