Jan 11, 2013

Tip 46-2012: Short Sales - Is the Purchaser Ready to Close?

As we all know, short sales do not happen quickly. There are continued requests for more financial or BPO information, and endless negotiations before the short sale lender finally approves the contract.

At this point, the Purchaser needs to be ready to close. Most short sale approval letters only provide a 30 day window for the closing. If the closing does not happen by the deadline, you have to ask the short sale lender for an extension.

Although an extension MAY be given, this is not always the case. The lender may need new financial docs, request a new BPO, or ask for a per diem for any extension. The best advice is that the Purchaser needs to be ready to close within the "30 Day Window" originally given with the short sale approval.

Accordingly, in order to insure a more successful short sale, the Purchaser should have already completed their home inspection. Additionally, the loan application should have been started well before the short sale approval.

With this approach, once the short sale has been approved, the Purchaser can complete any underwriting conditions and schedule the closing within the "30 Day Window". Short sales are tough enough without the Purchaser delaying the closing.

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

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