Successful Short Sale Negotiations start with a fully completed Hardship Packageas discussed in earlier posts. If you are new to this series on Short Sales, please go back and read part 1, part 2, part 3 and part 4. So, now we have an approval letter from the Mortgage Lender that spells out how they will accept less money than the Home Owner currently owes.
All approval letters say that the agreement is contingent on:
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Closing by a certain date
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The Buyer cannot be related or connected to the Home Owner in any way
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The Home Owner cannot receive any funds
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If there are monies in the escrow account it will go to the Mortgage Lender
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The Name of the Buyer and Amount of Offer Approved
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Pre-approved closing costs on HUD1
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The Home is sold as is
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Buyers cannot be changed
The letter also states whether the Home Owner has to contribute to the closing in the form of cash or promissory note for the offset amount, how the sale will be reported to the credit bureaus, and wiring instructions to the Bank.
Once the approval letter is received the Listing Agent will send a copy of the closing instructions to the Title Company so that the final HUD1 can be prepared, sent to the Mortgage Lender for Final Approval and schedule the closing.
Congratulations are in order for everyone envolved. The Listing Agent, the Buyer's Agent, The New Soon-to-be-Home Owneers and the Current Home Owner who has prevented foreclosure! It takes a concerted effort for everyone envolved to reach this point. Job well done!
If you, or someone you know is facing foreclosure, or has to sell their house but cannot get what they owe on it due to the current Real Estate Market in Elkhart County, call an Expert, a Certified Short Sale Specialist who has successfully listed and sold other homes in the Short Sale Process. Call Evelyn Johnston with Prudential One Realty at 574-304-7148.
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