Buyer Expectations
When submitting an offer on a short sale property this is
the Process you should expect to encounter.
Inspection contingency
It is recommended that inspections should be completed within
the first 15 days of the effective date in order to be prepared
for a smooth closing. It is necessary that inspections be
completed before the short sale lender approves the sale of the
property and schedules the closing.
Financing contingency
Cash offers are the strongest offers a buyer can make. At the
time an offer is made a letter from the buyer’s bank will be
required to verify funds to close. Financing should be arranged
prior to making an offer on a short sale property. A
pre-approval letter is not preferred by short sale lenders. An
approval letter from a US lender is requested when submitting
the short sale package to the lender. If the approval letter is
not available at that time, it should state in the purchase
contract that the lender approval contingency will be met within
30 days of the effective date of the purchase contract and
supplied to the short sale lender.
Short Sale Approval Process
The short sale approval process can take anywhere from 30 to 90
days depending on the short sale lender. It is best to plan on a
60 day timeline for an approval with most short sale lenders.
Other short sale lenders like Countrywide or Chase may take up
to 90 days for approval. The short sale approval should be the
last contingency in the contract.
Closing Date
The closing date should be scheduled 2-3 weeks after the
approval is granted from the short sale lender. Another reason
why inspections & financing need to be completed before the
short sale is approved.
Title Services
Title Services allows for the title of the property to be examined earlier
in the process ensuring a smooth and timely closing when dealing
with complex short sale transactions.
Buyer Premium
To help facilitate the short sale transaction and to pay
necessary expenses there is usually a buyer premium charged on the
HUD settlement statement to be paid only if the transaction
successfully closes.
This site compliments of:
Risa Saltman, CDPE, CRS, ABR, ePRO, REALTOR
RE/MAX Town & Country Realty
Orlando, Fl 32708
email:risa@saltman.c