What does everyone think of the post "How To Keep A Buyer A Party To A Short Sale Transaction Without A Signed P&S Contract" since comments are not allowed on that post?

Curious to hear everyones thoughts on the blog post

How To Keep A Buyer A Party To A Short Sale Transaction Without A S...

 

I have done my fair share of short sales and have always had a ratified contract in order to proceed with the short sale.  As a matter of fact, I have had documents rejected recently by Wells and Bank of America because they were missing proper signatures.

My question is this.....  If your buyer makes an offer to the seller and the seller does not sign, do you a binding contract?  The answer is NO in Florida.

Is anyone getting lender approval without having a signed contract between the buyer and the seller?  I know there are exceptions like the FHA preforeclosure sale process.

Not saying the author is wrong, just would love to hear others opinions on it and since the author does not allow comments, thought I would start a thread for comments.

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Permalink Reply by Andrew Coppo on May 18, 2011 at 8:44am
Darlene, as the author of the post, I apologize if you understood the article to mean that you don't need a valid contract before submitting the short sale package to the lender. If you read the post again, and more specifically the comments herein, you will see that in Massachusetts, a signed Offer to Purchase is a valid contract and is accepted as such by all lenders. The point of the article, and perhaps one that I could have stressed more clearly, was that there is no need to go to the Purchase and Sale stage, one that requires attorney participation in Massachusetts, in order to receive short sale approval. As someone who negotiates dozens of short sale transactions every month, I was merely proposing a solution to those agents that may, like me, have difficulty finding attorneys to draft and negotiate a P&S for free on a transaction that may never close. Again, this method may not apply in other states, but Massachusetts is an "attorney" state and therefore restricts the drafting and negotiating of real estate purchase and sale contracts to attorneys. I, like you, would never start working on a short sale without a signed contract.
Permalink Reply by Jeff Payne on May 18, 2011 at 9:57am
Andrew, thanks for the clarification, it really helps us to understand your post. 
Permalink Reply by Smitty on May 18, 2011 at 11:28am
Andrew, You can use a Massachusetts Standard Purchase and Sale form without using an attorney. You can use a standard form and many realtors do that. Having said that, a realtor cannot on behalf of a buyer or seller negotiate terms, or add provisions other than what is in a standard form. A buyer or seller (individually) can add provisions on their own accord, but any other 3rd party who is not an attorney cannot engage in the unlawful practice of law.

We don't necessarily involve attorneys all the time.

Again, I'd rather get my ducks in a row up front, than be down to a deadline and THEN start negotiations with lawyers.

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