We are purchasing a short sale and we got the approval and the closing date. Then the selling agent called me to tell me that they forgot to put the paperwork in the contract that states the bank will not go after the sellers for a deficiency judgement in the future. How long should this paper work take? Also, will they sign on off this paper work to say they agree to not suing them in the future? It is in Washington state. Thanks! :)
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Hi Ashley -
I do short sale in WA state so may be able to help a bit on information but really Bryant is right here. It depends on the lender more than anything and/or their investor guidelines. Most lenders would turn around an approval quickly. Because WA foreclosures typically don't carry deficiencies on first liens it normally is very simple to get a first lienholder letter updated to contain this language for removal of deficiency.
If the second lien is the problem here it can take much longer and/or require more negotiation depending on the lienholder. Often the second will require more money than the first will give in order to agree to a deficiency removal.
Hope that helps...I guess the basic issue to the question is "it depends." The two big things that will affect the amount of time is a) who the lender is and b) which lien it is.
Good luck!
I have no answer to your question, but I'm a short sale buyer and wondering how long did it take to get the aproval and the closing date? Thank you.
KATE:
Our short sale went pretty quick. From the date they accepted our offer to the final approval it took exactly 2 months. I got the approval last Monday but now I don't even know if it is going to happen. The closing date was Aug. 30th or sooner so all in all it will be 3 months. : )
I have found you can put anything you want in the PNS but the lender will issue approval however it suits them (usually based on investor requirements) so, you can ammend the PNS but it won't really make a difference. You have to talk to the short sale negotiator for the file at the bank and ask if you can get a waiver of deficiency in the approval.
Hi Ashley. It depends. IF the lender is willing to give a deficiency waiver then it shouldn't take too long to get a revised approval letter. This situation is quite common.
Thank you so much! Isn't the point of a short sale to sale the property for less than what is owed? Why would they not accept a waiver of the DJ since the seller is obviously NOT able to pay for the home? Are they waived more times than not?
Thanks! :)