Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on December 5, 2012 at 2:23pm

More than likely yes there will be an issue because there is no guarantee the sale and ultimate closing of the Buyer's home will occur.

Permalink Reply by Karen Mathers on December 5, 2012 at 3:56pm

I understand your thinking but there is no guarantee that any loan will close. The inspections and the appraisal has been done.  They are basically waiting for the short sale approval and then they can close so he does not have to move twice. I sure hate to cut a great buyer loose.

Permalink Reply by Kevin - Greenville, SC on December 5, 2012 at 7:35pm

I realize that, but it's the Loan Servicer who will most likely take issue with it.  At the time of Contract and their Short Sale review the Purchaser is not qualified and therefore I doubt you will secure an Approval for this Buyer until they have proof of funds in hand.  I'd personally advise my Client move on to a Buyer who has a the funds now, or a valid 'strong' Pre-Approval.

Permalink Reply by Stacey Wilson on December 5, 2012 at 3:39pm

Personally, I would never accept a buyer with that type of contingency.  Your deal will be tied to his deal closing, and that is something you have no control over and put's your seller at risk.  I don't think your client's lender will look that favorably at it either.  Just my $0.02!

Permalink Reply by SE Davis on December 6, 2012 at 1:43am

Karen Mathers I just closed one very similar to this and that buyer contingency was not-disclosed in my clients short sale purchase contract.

I scrambled and we required the contingency buyers lender to fully complete that underwriting process and write a CTC. "Clear to Close" commitment 2 weeks in advance of our projected short sale closing date. 

I took that buyers CTC and submitted it to the sellers short sale decision lender with an escalate/expedite urgency to treat that CTC document the same as cash. They did.

We acquired the sellers decision lenders written short sale approval 48 hours later and closed on time. JOY TO THE WORLD!

Closing both of these transactions on the same day is just NOT SMART as the cash transfer delays with the federal reserve "confirmation" process are not likely to occur seamlessly. Stagger those closing dates by at least 72 hours is my advice. 

Good luck Karen! 

Permalink Reply by Karen Mathers on December 6, 2012 at 3:40am

Thanks everybody, I just did not think this would be such a problem.  I guess I figured if the short sale lender was really worried about losing a deal, they would find a way to do a short sale in a reasonable amount of time. I just never thought they would have a problem with it. That is why it is so nice to come on to this forum as getting opinions from other short selling agents helps to put perspective on things.

Permalink Reply by SE Davis on December 6, 2012 at 3:54am

Short Sale purchase contract submissions require a pre-qualified buyer.

Your buyer was never pre-qualified and still isn't forcing you to implement a "salvage the transaction" solution.

An alternative was to have them apply for the loan acquiring a lenders pre-approval letter then he can legitimately change his mind after his sale transaction closes first then he can pay cash at the short sale closing after he has that money in his possession.

Closing both on the same day was never an option and still isn't.