Lenders may ask the seller to bring money to the closing as part of the short sale approval.

Several of my agents have encountered situations involving short sale transactions where, as part of the approval process, the lender requires the seller/owner to bring money to the closing. In many cases this condition of approval is acceptable to the seller and they agree to the banks terms enabling the transaction to close.

There are times when the seller/owner of the home being sold simply does not have the financial ability to bring money to closing. A recent example of a home we are selling subject to a short sale; the lender requested the owner to bring several thousand dollars in order to make the deal work. Not having the full amount requested by the bank, the seller might have just let the deal die. In this case the seller countered back the banks request at a reduced amount which the bank accepted.

The lender’s request does not always have to be the final answer. I know of one case where the lender said they would need the seller to sign a note for a substantial amount of money but the seller was unwilling or unable to do so and when the bank was informed of this they agreed to allow the short sale to deal close without the note.

Helping sellers obtain short sale approval from their lender is something we do very well. If you are considering short selling your home I would encourage you to give me a call for a private consultation.