if add a new name to purchase contract does the short sale have to be re submited

Asked by Eddie, 91343 Thu Jul 29, 2010

have approval but need to add my mother

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7
Sylvia Barry,…, Agent, Marin, CA
Fri Jul 30, 2010
Most short sale lenders would want to reapprove the short sale if it is already approved. If it is not, then you should submit it now but stress it's is not a new purcahse offer (so they don't start all over again) but it's an additional buyer.

Part of the reaons why the short sale lenders want to know every buyer is to make sure the short sale is arm-length; preventing fraud.

Sylvia Barry
Marin County Realtor, Short Sale Specialist
Web Reference:  http://www.SylviaBarryRE.com
1 vote
Dallas Texas, Agent, Dallas, TN
Thu Jul 29, 2010
No one can render an opinion not involved with the entire document process. It also depends on your lender

Best confer with your mortgage broker and real estate agent determine what works best.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Jane Grant, Agent, Aguanga, CA
Thu Jul 29, 2010
Eddie: There is an additional signature adddendum that is in the library of forms of the California Association of Realtors. If the bank has not approved the short sale you are purchasing and an escrow has not been opened then it may be able to be added.

_________________________
Web Reference:  http://www.soreal.biz
0 votes
Monique & Joe…, Agent, Beverly Hills, CA
Thu Jul 29, 2010
Hello Eddie,

If you are adding and not subtracting a name, I don't see why this would change anything. Check with your agent and have your agent check with the listing agent and inform them of the change.

Best,

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
mcarrabba@kw.com
(323) 899-2900
0 votes
Shel-lee Dav…, Agent, Rolling Hills Estates, CA
Thu Jul 29, 2010
Eddie:

This really depends on the Lender, the Investor and the servicer's negotiator. I have had some say that is not a big deal and others that say they need to go through the entire approval process again. It will often depend on who the second buyer is. If it is a spouse, it usually goes through easily. If it is an unrelated party, this will usually put you back a few steps in the approval process, and may derail the approval entirely. Have the listing agent check with their negotiator on this. If it looks like it will be a problem, just close with the original buyer and then add the second party to the title after close of escrow.

Just curious, is the second buyer being added in order for you to qualify for the loan? If this is the case, be up front with the negotiator and let them know this is what is needed to complete the sale. That may help get the approval more quickly.

Remember, most short sale approvals are buyer specific and have language to the effect that any change in buyer, seller, or other terms of the sale MUST be approved by the short sale lender. Title will require that you adhere to all terms of the short sale approval in order to issue insurance. Hope this helps. Dare to Dream.

Shel-lee Davis, CDPE, SFR, QSC
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com
0 votes
Ramin Lavi, , Los Angeles, CA
Thu Jul 29, 2010
Hey Eddie, we do this all the time. It should not be an issue at all to add a buyer to an existing short sale approval. The escrow officer will simply give the closing agent at the bank the heads up and they will ok it with the negotiatior and you should have an approval shortly with the new buyers name on it. Most lenders including Bank of America and Chase which are the most difficult and slowest to respond will even do this.

The problems exist when the agents request entire new buyers on the short sales. Most lenders with the exception of Saxon and a few others will have the buyer's info on the approvals.

Best of luck sir!
Ramin Lavi
EQ Finance & Realty, Inc
0 votes
CJ Brasiel, Agent, San Jose, CA
Thu Jul 29, 2010
Eddie -

The HUD-1 form will need to be updated to add the new name of assumed second borrower. This "final" HUD will have to be submitted to the approving short sale lender. Assuming the name addition does not change the loan approval, it will most likely not affect the short sale approval.

The short sale letter does not typically have the buyer's name, simply the seller's name and approved short sale amount.

Hope that helps.
CJ
Web Reference:  http://www.TalkToCJ.com
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