Finally got short sale approval for my buyer 2 days ago after 6 months- Bank of America - they gave us 9 days to close escrow and won't extend. Luckily I have a cash buyer or we would most likely be done already. The seller says he can't get his family out that fast and needs till the end of the month to be out otherwise they can keep their HAFA money and foreclose on him.
My buyer is reluctantly willing to agree as his only other choice is to lose the house.
Any advise on this would be greatly appreciated.
Thank you
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HAFA allows the Buyer 45 days to close. Have whoever is negotiating the Short Sale for the Seller escalate.
'The servicer may require that the sale closing take place within a reasonable period following
acceptance of the RASS, but in no event may the servicer require that a transaction close in less
than 45 calendar days from the date of the sales contract without the consent of the borrower.'
https://agentresources.bankofamerica.com/content/document/SS_HAFA_P...
https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/mhahand...
I do a post occupancy on every short sale we do to avoid that situation. Sellers use the HAFA funds to move and secure a rental.
Sounds like another negotation is needed here.
To protect the interests of your buyer and make him/her comfortable, this is how I'd bridge the gap:
"You're getting a great deal on this home and you still want it, right?
The seller needs more time after closing. Escrows are usually 30 days and +3 for possession. 9 days is not enough time for someone to find a place and move out. Would it to you?
What can we do to reduce your risk? Because....technically, you'd be a landlord."
1. I can find out if the seller is willing to rent back for an amount of $___ per day.
2. They're receiving a HAFA allowance. We might be able to have them use that as a security deposit.