Escrow Subject to Short Sale Approval -- Yes/No?

I am a prospective buyer of a short sale. All information was uploaded into Equator in early July, 2010, an appraisal was done in mid August, 2010, and my husband and I are still waiting to hear back on our offer. Thanks to this site, I was able to find out from the bank why our paperwork was not moving. It was stalled in Equator. There were emails but, so I am told, no phone calls from the listing agent to the Short Sale Department. Our loan has expired; so we need to reapply. I was advised by a friend that we should ask the seller's agent to open escrow subject to short sale approval because this way we will be ready with funding and all necessary paperwork should the bank accept our offer. I am told without being in escrow, one usually only has 21 days to comply with the bank's request and usually one will find himself in a position where one would need to ask for an extension, thus prolonging the process. I would love to hear any input regarding this subject. Is opening escrow subject to a short sale approval a prudent thing to do?

Replies

Kathrynne Campos-Gil September 13, 2010 at 10:19am

Bryant,
Thanks, for the input.
Bryant Tutas September 13, 2010 at 10:07am

Kathrynne. That would not be the thing to do in my state, Florida. Too many things can go wrong with the short sale approval. I would however have my ducks in a row with the financing. BofA will normally give 30-45 days for closing once the short sale is approved.

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