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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Harry my friend, I knew that you would have a great response. Won't fly in Florida either. I would be interested to see an approval letter from a lender without a sales contract. I read it 3 times thinking I missed something.
Sorry all. I didn't mean to disable comments. I am very interested in hearing how other short sale agents keep their buyers a party to the short sale during the approval process.
Keep in mind, in Massachusetts, an attorney must handle the P&S contract. We do not have title companies. As a result, most attorneys do not like to draft and negotiate P&S contracts on short sale transactions unless they know they are going to close. This way, the P&S is drafted after receipt of short sale approval.
For those that argue that you need a signed "contract". The offer is a signed contract because it states offer, acceptance and consideration which are all necessary components of a contract. Most lenders these days only require a signed "offer", not a full purchase and sale contract. This is merely a method to submit an offer to the short sale lender while binding the parties to a contract, via a signed offer to purchase.
Hi Andrew, thanks for the response....
You post is still very confusing to me, sorry.
For those that argue that you need a signed "contract". The offer is a signed contract because it states offer, acceptance and consideration which are all necessary components of a contract. Most lenders these days only require a signed "offer", not a full purchase and sale contract. This is merely a method to submit an offer to the short sale lender while binding the parties to a contract, via a signed offer to purchase.
I dont disagree that the lenders require a signed offer. What do you consider a signed offer compared to a full purchase and sale contract? A signed offer to purchase? I am assuming that the seller is signing this document or you do not have an acceptance of the offer, unless I am missing something.
Hi Jeff:
I replied in the comment section of the Blog post. Thank you for your comments. I am enjoying the feedback and am always looking for ways to improve our short sale procedures here in Massachusetts.
Jeff Payne said:
Hi Andrew, thanks for the response....
You post is still very confusing to me, sorry.
For those that argue that you need a signed "contract". The offer is a signed contract because it states offer, acceptance and consideration which are all necessary components of a contract. Most lenders these days only require a signed "offer", not a full purchase and sale contract. This is merely a method to submit an offer to the short sale lender while binding the parties to a contract, via a signed offer to purchase.
I dont disagree that the lenders require a signed offer. What do you consider a signed offer compared to a full purchase and sale contract? A signed offer to purchase? I am assuming that the seller is signing this document or you do not have an acceptance of the offer, unless I am missing something.
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