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The Buyer’s Lender An Added Obsticle To Short Sales?

Dealing with the seller’s lender(s) to complete a short sale can be frustrating enough.  Now, due to the spring/summer buying season, the number of refi’s and general economy issues, we are finding it increasingly difficult to get the buyer’s loan approved within the time frame of the short sale acceptance provisions – usually 30 days or less.

As we close 8-12 short sales every month, we are finding it necessary to spend more time with the buyer’s lender to expedite the loan or to go back to the seller’s lender for an extension on the closing date.

As a result, we have started to request:

  1. When the BPO has been completed by the short sale lender, we send a fax/e-mail to the buyer’s agent to expedite the loan up to the final inspection or lender’s appraisal. 
  2. We will request that the buyers have their inspector on standby to facilitate an inspection as soon as the short sale is approved.
  3. We will request that the buyer’s lender has all the necessary paperwork processed and be prepared to initiate their appraisal within a couple days of the short sale approval.
  4. We have added in the purchase contract that the Earnest money will be forfeited if the buyer’s loan is not approved or if the loan is not completed within the 30 day time-frame.So far, this has not been an issue as we fully disclose the loan requirements and time-frame to the buyer’s agent before the contract is accepted.

We are having some success with this process.  I would be interested to see how others are handling this newest hurdle in short sales.

Foreclosure Prevention Network
Providing Short Sale Negotiation, Training and Loan Modification
Address: PO Box 1998 Spring TX 77383.
Phone: 832-330-4588
E-Mail: info@TrademarkForeclosurePrevention.com
Web Site:  http://www.TrademarkForeclosurePrevention.com
Blog:  http://www.shortsalereporter.com

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