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Short Sale Approval does NOT mean Seller won't have any out-of-pocket expense.
You have a transaction pending short sale approval, and that lucky day FINALLY arrives when you get the fax that says, "APPROVED". Is your Seller 100% in the clear? Most Agents would answer, "yes" however the answer is, "no".
Just because you're approved doesn't mean that your Seller won't have a potential chance to have to bring in funds to close. More and more Lenders are approving the sale BUT not approving all of the Seller's costs. The lenders are not willing to pay ALL of the debt that the Seller has incurred against the property (ie; unpaid property taxes, hoa dues, land lease dues, judgements, liens, etc...)
I am having an issue on a file now where the Listing Agent is not grasping that yes her sellers are approved but no the lender is not covering all of her sellers debt. The Agent called the Lender and asked to re-approve based on the revised hud-1 showing the amounts to the Lender. The Lender told her no. They already approved the short sale based on the estimate previously received.
The problem here does not lie with there being errors on the Original estimate. The problem is that the Seller has NOT paid ... more
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