If you have ever received a short sale approval letter, you know doubt have had a feeling of jubilation like almost no other. The trials and tribulations of negotiating a short sale, keeping the buyer and seller content, and finessing all of the details at the bank make the receipt of the approval letter feel like a multi-million dollar win on a scratch ticket.
Unfortunately, the receipt of the approval letter doesn’t mean that the deal is ‘home free.’ There is still a traditional escrow period—complete with an appraisal, an inspection, and even perhaps the obtaining of a loan. Sadly, the transaction could still fall through—even after short sale approval has been obtained.
There are many last minute hurdles to closing a short sale. Two such hurdles involve property appraisals and liens.
Property Appraisals. Sometimes after the short sale approval letter is obtained, the buyer learns that his (or her) loan appraisal is for an amount lower than the purchase price. If this happens to you, don’t give up hope. Submit a copy of the complete appraisal to the short sale lender for review. Often times, a revised approval at the appraised value is just around the corner.
New Liens. New Liens against the property or the individual often appear during the transaction period. HOA liens are commonplace in the state of California, for example. If a new lien appears and needs to be satisfied in full before closing, ask the bank to contribute to the lien. You can also ask other parties to the transaction if they would be willing to help and satisfy the lien.
The bottom line is (as you have probably heard before) “It ain’t over ‘til it’s over.” What this means is that with a little bit of tenacity and sticktuitiveness, the short sale will result in successful closing.
Short Sale Expeditor
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Great points, thanks for sharing!
Just got one today.Thank you for insights
Just got one today whooo hooo .
Like that. I’m sure that you can easily overcome all obstacles! Thanks for stopping by the blog.
There are just a few things that kill a Short Sale, sellers that don’t want to sell ,they just want to live rent free a little bit longer,agents who didn’t set up and don’t summit the file to the bank the right way,don’t educate the seller up front right from the begaining or don’t update buyers and seller of status on the file. negotiatiator who take it personnal (negotiations). last but not least THE NUMBERS because if the numbers make since to the investor they will pay full commission,HOA,termite, Mold,other damages and liens I have done it many times. remeber the numbers are the numbers and they don’t lie……
Just know who you are going up aginest before you start, Know the rules of the game before you get in to play the game. now “just do it go help home owners so we can, all get out of this mess faster”
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