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LA will have to submit a final HUD for approval at least 5 days before closing but she should get an approval letter prior to that based on a preliminary HUD
The Final HUD approval is different from the actual Short Sale Approval. LA is telling my agent that we can't get an approval letter until he uploads the HUD 1 and that has to be done within 3-5 days prior to closing. - Not an accurate statement by the LA.
Close by the date noted in the approval letter.
• Notify the closing officer of any postapproval sale changes or closing delays.
• Complete the Is Closing on Schedule? task 5 days before closing.
• Complete the Supply Settlement Statement task 3 business days before the settlement date reflected on the HUD-1.
• Complete the Closing Complete task 2 business days after closing has occurred.
THANK YOU!!! I'm sending this right over to my agent. He IS a newbie.
The listing agent should have uploaded an estimated HUD when they got the offer from you, showing the offer price and the costs taken from your purchase contract, to be able to demonstrate the estimated net amount the sellers lender will get. This is standard with short sales and probably the listing agent just has not done that! The final HUD is a later step, after the bank has issued the approval letter. I cannot see how they can possibly ask your lender if they are clear to close when you haven't even got an approval letter which will state the date by which the seller's lender wants it to close. Very odd. Unless as you say this is some other kind of short sale!
agreed! Maybe the LA is a newbie.
Thanks everyone! This is exactly what I needed. I had never heard of a short sale until I signed my initial offer - I'd be so lost without this website! You are amazing! My agent is new to selling and he's stuck between the LA who claims to have experience and ME, the overly anxious buyer. Poor guy!
If your lender is asking for the approval letter from sellers lender; I as LA do one of two things I either have title company prepare a letter of reciept of approval and if this does not surfice for your lender, then because of the sensative, confidential nature of the approval letter to seller I must have sellers written approval to share that document with your lender. Hope this helps too!
Just wanted to share an update for anyone that was curious or for any other buyers that find themselves in a similar situation...My agent asked again for the approval letter - no response. So I asked MY lender to contact the title company to see if they have what they need. They verified that they have an acceptance letter from Bank of America with an expiration date of 1/27! Phew! I'm not sure why the LA wouldn't just TELL us this - but if anyone finds themselves in a similar spot - check with the title company!
Thanks again to everyone for all of your help! The end is in sight! I won't breath easy until I have keys in my hand. If this does close, the whole process will have taken almost exactly 4 months.
This will hopefully be the last you'll hear from me! Good luck in all your endeavors!!
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