What happens when a buyer walks away?
What our our next steps if a buyer walks away? Do we continue with the short sale approval with their original bid or do we have to hold everything until we get a new bid?
We're currently at the point were we're in negotiations with the second lien so that we can get a lien release. Our primary is waiting on this before they will approve of a short sale.
If we keep on moving on with the process, does it turn into a pre-approved short sale or is that an entirely different process than our traditional short sale?
We're most likely not going to be HAFA approved based on the refinance date on the primary mortgage.
We're currently at the point were we're in negotiations with the second lien so that we can get a lien release. Our primary is waiting on this before they will approve of a short sale.
If we keep on moving on with the process, does it turn into a pre-approved short sale or is that an entirely different process than our traditional short sale?
We're most likely not going to be HAFA approved based on the refinance date on the primary mortgage.
Replies to This Discussion
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Permalink Reply by Bryant Tutas on
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I would keep right on negotiating with the lenders. In the meantime get the property back on the market and try to find another buyer asap. As soon as you find another buyer send the lenders a new contract and HUD1.
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Permalink Reply by Brigitte Powell on
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Hmmm???? Would you not have to let them know that the buyer walked? Ethically?
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Permalink Reply by Ben Racela on
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If you notify the lender that the buyer has walked without having a backup offer in place the foreclosure will continue moving forward. Keeping that information in your back pocket may give you additional time to find a buyer so your seller will avoid foreclosure is another way to look at it. But there are lenders that will not allow you to switch out buyers if one has walked and re-start the entire process by submitting the new purchase agreement and preliminary HUD. The financials may still be acceptable as long as they are not older than 60 days for bank statements and 30 days for paystubs.
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Permalink Reply by Paul Francis - Vegas Short Sales on
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Always fun to deal with... Much more fun when values were dropping like a rock back in the day and the lenders would get stuck with a value in their mind that was 10 to 20% higher then the current value. ;)
It really depends on the lenders you are dealing with. Some are great about just switching out the approved buyers name... others make you start all over.
About to close on one where the first lender just changes out the name in a day or two as long as everything remains pretty much the same... and the second makes you start all over. (Previous buyer walked two days before the second issued an approval.) Waited 45 days for the second to re-approve / change the name of the next buyer we found.
This same second lender I dealt with on another short sale where they were the first. We actually had a verbal agreement of acceptable terms. Before we could get it in writing though... the buyers on that one walked due to some community changes. We had to start all over with a new buyer and everybody got dragged on and on and on for another four months with the new buyer.
No simple advice on this one without knowing the actual lenders you are dealing with and where you are in the foreclosure process. (If you are even in the foreclosure process.)
Your biggest concern for right now is to get a new buyer ASAP. I was recently on the buyer's side for a previously approved short sale with two loans where the previous approved buyer walked... we wrote up everything pretty much the same as the previous short sale that was approved and had a fairly quick new approval.
Find a new buyer with similar terms as the previous one and it will work itself out if you stay on top of it. -
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