SHORT SALE APPROVAL LETTER LANGUAGE

Just wanted to know if any investor our there has received an approval letter with the following language in it:   

"There are no agreements, understandings, contracts, or offers relating to the current sale or subsequent sale of the Property that have not been disclosed to the Servicer"

This seems to be new language that I haven't seen before but if the buyer has the intention of reselling the property afterwards - how would you get around this legally?   Any thoughts?   

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Comment by Lance Price on June 4, 2014 at 5:12am

Thanks Bryant.   There are no re-sale restrictions (i.e. that 30-day resale clause from BOA back in the day) so I guess we'll need to close on it first before getting it sold to our exit buyer.  

Comment by Bryant Tutas on June 3, 2014 at 9:30am

This is pretty much a standard clause. It relates to simultaneous flips, pocket buyers at a higher price or any other deals related to the property. They must be disclosed to the lender or it can be considered fraud.

Save the selling of the property until after you own it and you should be ok as long as there are no resale restrictions.

Always seek legal advice.

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