I was just wondering once you receive an approval on a short sale if you share the approval letter with the other party?  Is it okay to share the letter with the sellers personal information with the other party to the transaction?

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I don't.  I hand it over to the title company or closing attorney, but I see no need to give that info to the buyer or buyer's agent. 

Unless you have permission from the seller, you do not have the authority to share any of the sellers personal information with anyone except the attorney.

I've always had an issue sharing them with buyer's agent and buyer's lenders, but now we cannot get any new lender to even open a file without providing it. I'm in FL so I don't' know if that is just normal practice here or...

That's what I'm running into.  The buyers agents & lenders wants to be sure that we actually have short sale approval before they start ordering inspections. 

Another in a long list of reasons never to allow inspection/attorney review to be open until lender approval.

absolutely incorrect.  These lender can and will not only open a file, but give a conditional loan approval. We simply will not even accept any contract unless inspections/review is done in the normal 5/10 day period.

I know someone here has had a short sale fall apart at the table when the closer asked for the sellers contribution and of course the seller had no idea because it was not explained to him. When sellers cant afford to hire an attorney they rely on their realtor. I perfer to see the approval and I have had only one agent that I can remember refuse and I asked him what in the letter do you not want me to see.  Why would a seller care if the buyer and buyers agent see the letter ?  I have never seen one with secret, for your eyes only info., just the details of the sale.  If they are worried about the account number being on the letter well I can get more info on the seller just by going to the clerk of the court.

Here in Florida where I work, it is considered practicing law if you advise a seller whether or not to accept the short sale approval.  There is a fine line between what a realtor can do and what an attorney should do.  There are many sellers from past years that have deficiency judgments being inititated and attorneys are representing sellers and suing the realtors for giving such advice.  In my opinion if the sellers are not making their mortgage payments they should spend a little cash and get the advice of an experienced real estate attorney familiar with short sales prior to listing their property.  Why waste everyone's time trying to get the short sale approved if in the end they don't like the outcome.  Many lenders now are asking for cash contributions.  Most don't care who does the contributing and if a buyer is getting a good deal, most are willing to kick in the cash.  But sometimes the lender will absolutely not allow anyone else to contribute.  Sometimes it can be a catch 22.

See addendum G "Short Sale Approval Contingency" to the FAR/BAR contract paragraph 2 states "A copy of a Short Sale Approval accepted by Seller shall be delivered by Seller to Buyer and Closing Agent within 3 days of Seller's receipt of such Short Sale Approval" 

That's right on point Judi. 

Paul Antonelli

That's why its imperative to send a disclosure with the SS Approval Letter reiterating that you are not a CPA nor an attorney and to seek the advice of a professional who offers these services. Etc

I am buying a short sale in california, I can't even order the appraisal with out it (I am the buyer)

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