This could be taken two ways in an Offer to Purchase. I always include Subject to Bank Approval in my Offers relating to Short Sales. I'm thinking that it almost needs to read "Subject to Seller's Third Party Approvals" so there is no confusion if the Bank Approval is for the Seller or the Buyer, I see this as being a Grey area if it came down to it because Subject to Bank Approval is to vague. Short Sales are very evident in my market and I hope to take advantage of this niche.
International Financing Solutions - Fort Myers, FL
International Financing Solutions
We recently closed a loan for a buyer who purchased a short sale home. Only problem was nobody disclosed it was a short sale home until I called the seller's agent and was told they were waiting for written approval by the seller's bank on the sale price. Fortunately it closed, but it would have been nice if they had disclosed it in the beginning.
Sean Allen
Dec 19, 2007 11:40 AM
Atlanta, GA
Great point! I think that we just take it for granted (as agents) that the co-op agent is going to understand. I do quite a bit of short sales in my area and have not run into a problem but I am all about being proactive! Good luck with the short sales, if you learn to work them they can really improve your business.
Dec 19, 2007 11:42 AM
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"
do short sales even work...I talked to an agent in my area who told me that 1 in 10 of her short sales actually make it to closing before they get foreclosed on...
Dec 19, 2007 12:02 PM
Century 21 New Millennium - Woodbridge, VA
In our MLS we have subject to Third party approval which means that in addition to the owner the lender must approve the contract.
Dec 19, 2007 12:08 PM
eXp Realty - Oconomowoc, WI
Servicing: Waukesha, Jefferson, Dodge County WI
Sean: Thankfully it closed, that is why disclosure is so important we are dealing with peoples lives.
Amy: I also think we just assume everyone gets our lingo, I'm just getting going on short sales an so far actually think there is great income potential. Thanks for the comment.
Konnie: Yes, short sales really do work if you know how to work them. They are a challenge but if you are persistent and do your job it will get closed.
Stacy: I think that is what I need to do from now on. I have only been putting subject to bank approval that is confusing if you think about it.
Thank you everyone for commenting.
Dec 20, 2007 01:34 AM
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland
I also use "Third Party Approval" when I am selling a seller's home while they are in Bankruptcy. It would need the trustee's approval.
Dec 20, 2007 12:57 PM
Rainmaker
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