I am buying a short sale. The short sale was approved on Dec 19, 2012. My mortgage broker is saying we can settle on Jan 30, 2013. I am afraid that is too long and BOA will back out and take back the approval. Does any one have any insight as to how much time a buyer is given to close the deal once the short sale has been approved?
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Your agent should have this information and keep you updated. Often times you only get 30 days to close so close of escrow might have to be extended for another two weeks. I usually have not had problems extending the close of escrow. The key is know what date the HUD1 has for closing. We have fairly hefty property taxes and or HOA dues that the bank pays - since the seller usually has no money to pay it. The agents will want to make sure that the NET to the bank is within their approval level so there are no surprises at close of escrow. I'm surprised that your lender doesn't have the approval letter as that is usually required before they move forward. All the energy of everyone involved wants this to close - including B of A. It will close and you will have a great place to live.
Thanks for the positive reply. We have the approval letter, but had to ask for a couple extenstions. I am just nervous BOA won't give us an extension.
The seller/listing agent should have been given an approval letter by B of A. In that letter it should state the terms of the sale that B of A is willing to accept. One of those items should be that the closing/settlement needs to occur prior to a particular date. As long as January 30th is with in B of A's timeline, there shouldn't be a problem.
Good Luck