The NC Short Sale Addendum, makes this clear:
Short Sale Approval Risks: Buyer and Seller understand and agree that:
â€¢ No Lienholder is required or obligated to approve a Short Sale
â€¢ Lienholders may require some terms of the Contract be amended in exchange for approval of a Short Sale, including acceleration of the Due Diligence Period and Settlement Date
â€¢ Buyer and Seller are not obligated to agree to any of Lienholders' proposed terms
â€¢ Seller may not be financially able to make any repairs to the Property that Buyer may request. The Sellerâ€™s inability to make repairs shall not affect any rights that Buyer may have to terminate the Contract
â€¢ The costs of Due Diligence and any Due Diligence Fee usually are not refundable to Buyer in the event the Short Sale is not approved.
â€¢ Lienholdersâ€™ approval may take several weeks or months to obtain, and neither the Seller nor any real estate agent representing Seller or Buyer can guarantee the timeliness of Lienholdersâ€™ review, approval or rejection.
â€¢ NEITHER THE BUYER, THE SELLER, THE CLOSING ATTORNEY NOR THE BROKERS IN THIS TRANSACTION HAVE ANY CONTROL OVER LIENHOLDERSâ€™ APPROVAL, OR ANY ACT, OMISSION OR DECISION BY ANY LIENHOLDERS IN THE SHORT SALE PROCESS.
While the approach to processing a short sale can be fairly standardized, the lienholder response can vary, many times in nonsensical, non-linear and illogical ways. For example, on different transactions, we have had both first and second lienholders sell servicing rights to the loan and withdraw short sale approval, including one notice received less than 24 hours prior to settlement/closing. I tell people that short sales can take 6 weeks to 6 months and that anything can happen; they are for the emotionally stout. That said, we also experience good success rates using an experienced attorney team and proven negotiation methods.
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