Now that we have a short sale approval what do we do now? Once we have the short sale approval the sale progresses much like a regular sale. (Most of the time) The buyer now has a certain amount of days (whatever was agreed to in the purchase contract) to do their inspections. If the buyers are financing the purchase the lender will do an appraisal.
The short sale lender has issued you the seller a short sale approval letter. This letter will have a specific date by which the transaction has to close or the approval will expire. It's my responsibility as your listing agent to make sure that everything is moving along and will close on time. I am in regular contact with the buyers agent to make sure they are progessing and moving toward a successful closing.
On occasion an issue my pop up that could delay the closing, such as an appraisal issue but more often something with the buyer. It's usually something to do with the buyers lender. At this point I have to go back to the bank(s) that approved the short sale and try to get an extension on the approval. This can take a few days and if there is a foreclosure date set it can get a little tricky. I have been successful in getting this extension most of the time, but it all depends on the bank.
Once all the hurdles are cleared and the buyer has their loan documents it is time for them to meet with the title company and sign them. You as the buyer will also meet with the title company and sign some documents. If you are in the area we will meet with the title officer at her office. If you are out of the area the title company will make arrangements for a notary to meet with you to sign the documents. Usually after all the documents are signed by both parties the loan documents go back to the lender for funding then recording. At that point the sale is complete.
The information in these posts is meant to be a general overview of what it takes to do a short sale. It is by no means a complete list of anything and everything that can happen or that needs to be done in order to successfully close a short sale. Every bank does things a little bit different and things change from transaction to transaction. The best way to find out if you can do a short sale on your home is to call me, Jim Patton, Short Sale Specialist and we can talk about the specific details of your situation.
Be sure to see my previous blog posts on this subject.
Central California Short Sale Process, Part 1
Central California Short Sale Process, Part 2
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