A Buyer's Quick Guide to Short Sales - Part 5

Approval and Closing

- Once the offer and proceeds are approved by the short sale lender they will issue an approval in writing. Once this approval is issued if you haven’t done the inspection this needs to be done ASAP – concerning the inspection – most short sales are sold as is and the Seller is likely unable or very limited as to what repairs can be done. Make sure that your lender is aware of the time frames to get loan docs to title – most short sale lenders require the closing HUD 24-72 hours prior to closing. Encourage your lender to get your loan docs to title early not late. If the closing is delayed it could result in additional fees to you as a buyer and if deadlines are missed there is no guarantee the short sale lenders will give an extension – this lands you as a buyer without a house and the sellers likely in foreclosure.

Make sure you address all these items on a short sale to be a well informed short sale buyer and you’ll increase the probability that you’ll find the right property for you.

This is not to be construed as financial or legal advice and it is recommended that readers seek the advice of qualified professionals.