Who writes the contract in a short sale?

I have had people telling me it's the seller's lawyer but I am confused as to how to seller could afford a lawyer if they need to take part in a short sale.


Also...


Can the bank change?

I have also had people to tell me to "watch out" as the bank can change before closing.  Is this true>

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The contract is between the buyer and the seller, the sellers attorney may review the contract but that should be a function of the real estate agents involved. Just because a seller is short saling, does not mean they are broke. I have all of my sellers consult with an attorney.
Yes the bank can change, if they sold the note to another bank.
A lawyer is the only one who can legally write up a contract. But, most Realtor boards have "stock" contracts prepared by their attorney for board members to fill in the blanks. Now, a seller and buyer can draft their own contract, too, and there is nothing from stopping them. It's just a matter of knowing what should be on the contract and how it would get executed.

Yes, a bank can change, but the seller would usually get notified well in advance of a change in servicing. The exception might be if the current lender assigns it to a trustee company once it goes to pre-foreclosure.
Do you know APPROXIMATELY how long it takes for a contract to be drawn? I feel like I have been waiting for a while and I have had no word from anyone. We got a verbal acceptance, and my broker said that the seller was waiting for a written letter. That was the last I heard from anyone.
Maybe I'm missing part of the situation here, so please pardon me. What "contract" are you waiting for? Did you already submit an offer to the seller? If so, did they accept and sign your offer? If so, then you have a contract. With your offer, you probably sent some sort of Short Sale Addendum, which forces the buyer and seller to acknowledge that the contract is contingent on the seller's lender approving the short sale. If the lender approves the short sale, you'll sometimes get a verbal approval over the phone from the negotiator, but then it could take 1-2 weeks for the written approval, depending on the lender's audit process.

Vicki said:
Do you know APPROXIMATELY how long it takes for a contract to be drawn? I feel like I have been waiting for a while and I have had no word from anyone. We got a verbal acceptance, and my broker said that the seller was waiting for a written letter. That was the last I heard from anyone.
Eric M. Boyd said:
Maybe I'm missing part of the situation here, so please pardon me. What "contract" are you waiting for? Did you already submit an offer to the seller? If so, did they accept and sign your offer? If so, then you have a contract. With your offer, you probably sent some sort of Short Sale Addendum, which forces the buyer and seller to acknowledge that the contract is contingent on the seller's lender approving the short sale. If the lender approves the short sale, you'll sometimes get a verbal approval over the phone from the negotiator, but then it could take 1-2 weeks for the written approval, depending on the lender's audit process.

Vicki said:
Do you know APPROXIMATELY how long it takes for a contract to be drawn? I feel like I have been waiting for a while and I have had no word from anyone. We got a verbal acceptance, and my broker said that the seller was waiting for a written letter. That was the last I heard from anyone.

We had a written memo. of sale that was given by my agent to the broker, who then gave it to the seller or bank. Our attorney stated that this was not a contract, just a simple price agreement.
After we gave this price agreement or i'm guessing "offer". They conducted a BPO. About 10 days after the BPO was conducted they gave the seller a verbal acceptance, who then told his broker, who told my agent who told me.

Now they are saying that we are waiting for the seller or the bank, they aren't sure who does it...to create a contract.
I'm pretty sure that before the seller does this he is waiting for written approval from the bank.
I'm sorry so new to this and very confused.
Hi Vicki. Either of the agent/brokers or the attorney can write the contract. If you agent is not capable of doing this then he needs to push the issue to get it done. Until you have a written and signed contract you have nothing. If an agent is doing the contract using pre-printed board forms it takes about 30 minutes. An attorney can probably do it in about the same time.

What State are you in?

***By the way I am not an Attorney nor do I play one on TV. This response is just my opinion.
I am in NY.

Bryant Tutas said:
Hi Vicki. Either of the agent/brokers or the attorney can write the contract. If you agent is not capable of doing this then he needs to push the issue to get it done. Until you have a written and signed contract you have nothing. If an agent is doing the contract using pre-printed board forms it takes about 30 minutes. An attorney can probably do it in about the same time.

What State are you in?

***By the way I am not an Attorney nor do I play one on TV. This response is just my opinion.
Okay yesterday I just found out that the bank IS bank of america, countrywide. Now I am nervous because I have read NOTHING but horrible things about BOA.

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