If a Buyer Can't Get Their Loan Approved After Two Contract Extensions, They Shouldn't Be Under Contract
Way back when dinosaurs walked the earth (or at least that's how it feels, really it was just early August) I got one of my Gainesville Short Sales under contract. I knew it would be a tricky one since there were three 
mortgages on the property and the loan in third position had the greatest shortfall. The Short Sale was approved in record time by all the lenders and approval was delivered to our Buyer after one month of being ratified.
Getting Short Sale Approval may be the toughest part of most Short Sales, but not in this case. It's been getting the Buyer to get their financing in order. Evidently, getting a three loan Short Sale approved in thirty days was just too fast for this Buyer.
This Buyer is an investor. At any given moment in time, he's got several irons in the fire. And that makes him a risk for conventional loan underwriting these days. His assets and income are in flux during the selling and buying process of his other investment properties. He was banking on this Short Sale taking at least three months. Sorry. I'm good at my job. Most Buyers would be THRILLED to be able to settle on their Gainesville Short Sale faster than anticipated. Not this one.
The Short Sale banks have issued a total of three letters each; the first, then two extensions. Now the Buyer wants yet another extension. My Sellers have put their foot down. No way!! It's time to settle or loss your earnest money deposit. If you weren't approved for your loan one extension ago, what good is a third extension going to do.
Never bet on a Gainesville Short Sale to take a long time. Despite the grumbling that goes on in our marketplace, even three loan Short Sales can get approved quickly when you have an experienced Gainesville, VA Short Sale Agent on the task. Better have that loan ready to go or lose the home you wanted to buy.
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