Login
Register
Short Sale Tip 7-5-10
Posted on 05. Jul, 2010 by ctlms in Blog, Foreclosures, My Blog, News, Real Estate, Short Sale, foreclosure
Does the seller sign the contract before bank approval?
I have heard this question a ton of times and have seen agents argue over it.
The answer is always YES!
Let's look at the issue.
1. There is no Contract until the Offer is signed. So if the buyer's offer is never signed, there is no binding contract holding the buyer to the purchase or the seller to the sale. This means the buyer has not deposited an earnest money check and can walk at any point. This also means the seller is free to accept any other offers that come in without first having to be released from the original buyer. Not a smart thing for either party.
2. More importantly, most lenders will not accept an offer. There must be a fully executed contract. Many of the larger lenders such as Wells Fargo and Bank of America even require closing date extensions and other addenda to the contract and the dates must always be current. So if something expires, it must be updated with an addendum or the short sale review stops. Going even further, some lenders even want to see a copy of the earnest money check. The requirements are getting more and more thorough.
In summary, Yes the contract must be signed. It makes sense for both the seller and the buyer and with very few exceptions, the lender will require it anyway.
Sean Wilder
Connect with Us
Bio
Sean Wilder started in the pre-foreclosure business in 2007. Previously he enjoyed successbusiness in the transportation industry, real estate investing and as a licensed Realtor. Sean brought the same determination and work ethic that lead to great success in his previous businesses to Loss Mit Services based in East Windsor, CT. His focus, combined with his drive to succeed, have been essential to his success as one of the area's top short sale negotiators.
Known for finding creative ways to overcome hurdles and never ending persistence; Sean, believes in the power of team. Sean and his team are in the trenches everyday, plowing through challenges and objections while negotiating with various lenders, and finding solutions to difficult problems. It is this daily experience that brings Loss Mit Services consistent success and provides them the knowledge to share.
Sean belongs to a number of industry groups and associations that allow him to collaborate, share, learn, teach and stay updated on the latest changes in the pre-foreclosure industry at the federal, state, local and lender specific levels.
Effective Oct 1, 2009 all debt negotiation companies that offer loan modification, short sale, or foreclosure rescue services needed to be licensed by the CT Dept of Banking. Sean and his company Loss Mit Services were the 1st to be awarded the Debt Negotiation License NMLS # 828273 which can be verified at the CT Dept of Banking Website by Clicking Here. In addition, effective Oct 1, 2011 Debt Negotiators were required to also be licensed Mortgage Loan originators and Sean also has received this license, NMLS# LO-831853.
Recent Comments