Home Buying in Goffstown>Question Details

Anorander, Home Buyer in Goffstown, NH

what does subject to 3rd party approval mean?

Asked by Anorander, Goffstown, NH Thu Jan 5, 2012

Help the community by answering this question:


3rd party approval is a softer and alternative way of saying it is subject to the buyers bank approving a short sale. It means the home owner owes more than the house is worth and has requested their bank reduce what they owe to allow them to sell. The sale only goes as well as the Listing Agent and negotiator is experienced in listing and negotiating short sales.
Web Reference: http://www.ScottSellsNH.com
2 votes Thank Flag Link Thu Jan 5, 2012
The 3rd party is most likely the lien holder, making this a short sale. The contract will be accepted between the seller and the buyer, subject to the lien holder approving the amount and terms.
0 votes Thank Flag Link Thu Jan 5, 2012

This is a clause normally associated with disclosing that a sale is a "Short sale" and that the terms and conditions of the sale are subject to being reviewed and approved by the owner's lender.

Hope this is helpful.

0 votes Thank Flag Link Thu Jan 5, 2012
One thing to be careful of when dealing with short sales, is you have no idea what the timeframe is going to be for the 3rd party to issue approval. Many times it's a waiting game, and I personally had a client wait 13 months before we got the approval. Also remember that if the property you are trying to purchase has 2 liens (two mortgages on the property), that you will have to get aprroval from both Lenders.
0 votes Thank Flag Link Thu Jan 5, 2012
That is normally in reference to a short sale where the homeowners/sellers lender must agree to the price and terms of the sale of the property. The contract in between the buyer and the seller but the third party (the sellers lender) must agree in order for the sale to go thru. The lender is not required to approve the short sale so if the lender doesn't agree the sale can not go thru.
0 votes Thank Flag Link Thu Jan 5, 2012
Hello Anorander,
3rd party approval means that the lender or bank for a property that is a short sale has the final decision on accepting the offer. The seller must accept the offer first then that offer is given to the lender to be accepted, rejected, or countered.

Good luck to you!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Thu Jan 5, 2012
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