Jul 17, 2014

Tip 23-2014: Is the Short Sale Purchaser Ready to Close?

As we all know, short sales do not happen quickly. There are continued requests for more financial information and endless negotiations. Negotiations can become even more complicated if there are subordinate lienholders or if there is a service transfer of the loan.

When the Short Sale lender finally issues the approval, all parties experience a sense of relief. However, the question remains: is the Purchaser 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, the negotiator has to ask the short sale lender for an extension.

Unfortunately, extensions are not always given. The lender may request new financial documents from the seller, a new BPO may be ordered, or the lender may even ask for a per diem for any extension. Accordingly, the Purchaser needs to be ready to close within the "30 Day Window" given with the original short sale approval letter.

The best advice is to have the home inspection already completed and the loan application started well before the short sale approval is issued.

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, so any actions that can be taken to avoid delays will ultimately help in the long run!
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello

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