Heading for the finish line of the short sale home purchase. Part 3 of 3
Posted by Romeo Manzanilla on Thursday, November 18th, 2010 at 5:10pm.So you've stuck by your guns and patiently waited while the mortgage bank finished all of their internal evaluations, appraisal and broker price opinions and the closing date is in sight. The one thing to keep in mind with a short sale is that the transaction is not a "sure thing" even though the bank has approved the transaction. There are still some final hurdles that have nothing to do with the buyer. In some cases, as part of a short sale approval, the mortgage bank may require the seller to pay for a small portion of the loss or may want them to sign a promissory note. This can be a deal killer if the seller doesn't have the funds required or chooses not to sign a promissory note to the bank. In some cases I've had home sellers agree to pay anywhere from $500 to $15,000 depending on the type of loan and their financial position. In most cases, my clients have been granted a full and final release, but in some extreme cases where my clients may have other assets or investments in jeopardy, they may find it more beneficial to pay a small amount than to go through the legalities of the foreclosure process. In a short sale, things can change even up to the day of closing so be prepared for further delays or that the deal may go south.
As the buyer, once you've signed all of the closing paperwork at the title company and the loan has funded and you have the keys to your new home in hand, you can finally breath a sigh of relief that you've made it through the hoops and hurdles of purchasing a short sale property. For more information about short sales, please visit my Austin Short Sale page.
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