Which type of contingency is used for a short sale?
Bank approval Contingency Bank contingency is really important for a short sale and must be attached. The seller must submit the hardship letter along a plenty of documents to prove the inability to pay the mortgage loan.
Can you negotiate a bank approved short sale?
Can You Negotiate A Short Sale? It is entirely possible to negotiate a short sale, but doing so can be a time-consuming process. Instead of negotiating with the seller alone, as is the case with most traditional sales, short sale negotiations must be approved by the lender, too.
How long does it take for a bank to accept a short sale offer?
Sometimes it takes weeks or even months for a short sale offer to be accepted or rejected. Or the lender may make a counteroffer, in which case you can refuse, accept, or counter back — which involves restarting the process from square one.
Whats the difference in pending and contingent?
The difference between pending and contingent is that pending means the home is already under contract with another buyer and that all the terms and contract work has been done. Meanwhile, contingent means that the closing is still contingent on one or more factors being met.
What is bank approved short sale?
A short sale approval letter is a letter that a lender issues to the seller if a short sale offer is approved for less than the amount the borrower owes on a mortgage. It’s issued by the lender at the end of a short sale to demand the “short” loan payoff in return for releasing the lien on the property.
What’s one reason that buyers might need additional cash at closing for a short sale?
What’s one reason that buyers might need additional cash at closing for a short sale? Short sales don’t clear liens from the title, so buyers may have to pay debts at closing.
What does contingent mean on a short sale?
A Short Sale Contingent status indicates that the home is no longer for sale due to an accepted offer, but the short sale is still in process.
How do you get a bank approval for a short sale?
Gather the necessary documents for approval. Lenders typically require financial documents, such as your pay stubs, proof of unemployment, prior-year tax returns and bank statements. Proof of hardship will be required. Gather all your bills, such as medical expenses, that support the need for a short sale.
What does it mean when a short sale is not approved?
An unapproved short sale consists of an outright rejection of the short sale; a counter offer of certain terms; or an approval with terms not initially agreed upon by seller and buyer.
Is pending or contingent better?
Is pending or contingent better? If a property is listed as contingent, the sellers has accepted the offer, but there are certain contingencies that need to be met, so the property is still active. If a property is listed as pending, however, the contingencies have been met and the sale is being processed.
Do I need a bank approval contingency for a short sale?
For short sales, a bank approval contingency should always be attached. The seller must submit a hardship letter along with ample financial documents to prove an inability to afford the mortgage in order for the bank to agree to take the loss and approve the short sale.
How does a short sale get approved by a bank?
Banks generally do not approve a short sale until the bank receives an offer from a buyer. The usual way a short sale can be approved is for a buyer to submit an offer and get that offer approved: Agent lists the short sale. Seller delivers lender’s required documents to the agent. Buyer submits an offer subject to lender approval.
Do short sales have contingencies?
Due to the approval process required, short sales have contingencies that must be met prior to entering escrow to close the sale of the house. By definition, a contingency is something that is liable to happen if and only if other conditions are met first.
Can a bank sabotage a short sale?
Here are some of the ways a bank or its investors can sabotage the short sale: Demand a higher sales price than an appraisal will ever meet. Some agents mistakenly believe that banks are stupid and/or the BPO agents are incompetent. But that’s because agents believe the banks care about the BPO and that the banks are telling the truth.