MYTH
LENDERS ARE BOUND BY THE PURCHASE AND SALE AGREEMENT Short sale lenders couldn’t care less about matters, provisions and conditions that are included in your Purchase and Sale Agreement. There’s a belief in offices that certain “magic language” added to the Purchase and Sale Agreement will cause the seller to be relieved of liability from their short sale’s lender.
This is far from the truth. The seller’s short sale lender is not bound by the
terms of the Purchase and Sale Agreement as they are not parties to that
agreement.
MYTH
IF THE PURCHASE AND SALE AGREEMENT SAYS
UTILITIES MUST BE PAID BY SELLER, THE SHORT SALE LENDER IS REQUIRED TO PICK UP THOSE FEES
IF THE PURCHASE AND SALE AGREEMENT SAYS
UTILITIES MUST BE PAID BY SELLER, THE SHORT SALE LENDER IS REQUIRED TO PICK UP THOSE FEES
Short sale lenders are not required to even entertain a short sale. Their agreement
to do so is based upon a business decision that they believe a short sale is in
their best economic interest. Just because you include certain provisions within
your Purchase and Sale Agreement, the lenders are not in any fashion bound to
accept those provisions. All terms associated with a short sale are
negotiable. Many times we are negotiating terms of an agreement agreed to by
the seller and buyer, but not by the seller’s bank!
to do so is based upon a business decision that they believe a short sale is in
their best economic interest. Just because you include certain provisions within
your Purchase and Sale Agreement, the lenders are not in any fashion bound to
accept those provisions. All terms associated with a short sale are
negotiable. Many times we are negotiating terms of an agreement agreed to by
the seller and buyer, but not by the seller’s bank!
We commonly negotiate utilities, homeowner’s association dues, septic inspections,
water well inspections, closing costs, taxes, fees as well as commissions.
Everything can be on the table in a short sale. That’s why it is important that
we “negotiate” and not just “coordinate.”
water well inspections, closing costs, taxes, fees as well as commissions.
Everything can be on the table in a short sale. That’s why it is important that
we “negotiate” and not just “coordinate.”
MYTH
LENDERS ARE BOUND BY THE DEADLINES CONTAINED
IN THE PURCHASE AND SALE AGREEMENT
LENDERS ARE BOUND BY THE DEADLINES CONTAINED
IN THE PURCHASE AND SALE AGREEMENT
Many Realtors get very upset when deadline dates contained in the Purchase and Sale
Agreement are ignored by seller’s short sale lender. This is nothing new. They
are not bound by the timelines contracted between the buyer and seller. You
see, the short sale lender isn’t a party to the Purchase and Sale Agreement. We
say that time and time again. The short sale lender operates on its own
deadlines and not those of the seller or buyer.
Agreement are ignored by seller’s short sale lender. This is nothing new. They
are not bound by the timelines contracted between the buyer and seller. You
see, the short sale lender isn’t a party to the Purchase and Sale Agreement. We
say that time and time again. The short sale lender operates on its own
deadlines and not those of the seller or buyer.
ONCE AN APPROVAL BY LENDER IS PROVIDED, THEY
ARE BOUND TO HONOR THAT LETTER OF APPROVAL
ARE BOUND TO HONOR THAT LETTER OF APPROVAL
We are all excited to receive the approval letter. That is what the negotiations
are all about. However, many agents believe that the short sale lender is bound
to close the deal exactly according to the terms of that approval letter. In
fact, in most instances the lender makes their ultimate approval subject to a
final approval of the closing papers. This is why we as short sale negotiators
continue to work the short sale transaction all the way through the closing of
escrow. Escrow closing is an integral part of negotiations for us.
are all about. However, many agents believe that the short sale lender is bound
to close the deal exactly according to the terms of that approval letter. In
fact, in most instances the lender makes their ultimate approval subject to a
final approval of the closing papers. This is why we as short sale negotiators
continue to work the short sale transaction all the way through the closing of
escrow. Escrow closing is an integral part of negotiations for us.
Hiring the right short sale real estate agent who work hand in hand with a good short sale negotiator is a very important part of getting your house sold. This can be a long process so you will need to be patient. It is very important that you provide everything requested before the package and offer are turned over to the bank for consideration. Always remember with the bank it is their bottom line that matters!
Call Joyce Lowe ABR,CRS,GRI,CNS,Broker 206-790-4696 today for more information on how she can help you through this process.
