I currently have three short sale offers in, two of which have been in for over a month. All have a different set of rules laid out by the bank, One is the buyer's second attempt at a short sale. We backed out of the first one because the bank requested that they sign a blank mortgage application even though they were already pre approved. Our fear was that they would shop the mortgage around causing my clients credit to be pulled several times and lowering their credit score.
Again, many banks only accept a signed P&S as an offer. They need to legally give you the right to have an inspection however; if they want you to do it before making an offer and you really want the house, I think your buyers agent was correct in having you go through with it. It is a small amount of money to spend on peace of mind.
Thatâ€™s highly unusual, especially if you have a buyer agent. Without the banks approval, my experience is that the contract is not legally binding until itâ€™s mutually agreed upon in writing by â€œall partiesâ€. Thatâ€™s why short sales are â€œsubject to third party approval.â€ (the lender). Regarding already conducting the home inspection, in my opinion the buyer shouldnâ€™t make any investments until they know itâ€™s a viable transaction and you donâ€™t know that until you have the approval in hand. I have seen many banks reject short sales.
Best of Luck!
It's not all that unusual. Massachusetts is one of the few States that uses a Contract to Purchase prior to the Purchase and Sales. Most Places go right to Purchase and Sales. Ordinarily they will not allow any changes to be made but I would still have a Real Estate Lawyer look over it to make you better aware of what you are signing. Good Luck!