I am curious about members experience in how they handle application to an association when lender approval is still pending. In Florida, application to association is to be done upon an a specified number days agreed to after Effective Day. Some associations require application fees with more than one association in the development and clients are hesitant to apply if the lender hasn't approved Comments and suggestions are welcome..
You need to be a member of Short Sale Superstars to add comments!
**********************************
like buttons
Replies
I might very likely push for this right away, assuming I wasn't having an aweful time getting a buyer, also assuming the cost is somewhat reasonable (maybe less than $200).
1. if the buyer can't get approved by the association, it isn't in anyone's best interest to delay finding this out, including the buyer.
2. If it takes a while to get approved, you may blow the short sale approval by not being able to close on time. I don't work in Florida, but some small associations only meet once a month. If you get the approval shortly after the meeting, have to wait 29 days for the board to meet, then get the buyer's underwritting complete you could easily blow a 45 day approval.
3. Obviously, the buyer is going to be more committed to the deal if they have some (non-refundable) skin in the game.
Assuming the approval process can be done in 30 days or less I would wait until after short sale approval. The time frame for this needs to be addressed in the purchase contract.