Short sale needs bank approval

Search for homes

Buyers and sellers entering into a contract for a home that is subject to a short sale need to be aware that the transaction will require the seller's lender approval. The lender will have the right to approve:

• Purchase price
• Terms of the contract
• HUD statement

In the short sale process the bank or lender must agree to take a payoff from the seller that is less than is owed. This process can take time. Both parties will need to exercise patience and the lender processes the request.

If you are facing a short sale situation it is best to use the services of a full time real estate professional to assist you with the selling of your home. Give me a call at or email me to discuss your specific situation.

Related Florida real estate views:

Appraisal problems add to the frustration

Real estate agents would be wise to pick short sales over long sales.

Negotiating a short sale with the lender

- Greg Staker - 407-304-0255

Short sales can be confusing even to agents

Your buyer finds a home they are interested in and it is listed as being contingent upon 3rd party approval of the contract or contingent upon the lender accepting a short sale. The buyer submits an offer and the seller accepts the buyers offer. The executed contract is sent to the lender for approval. The lender after many days or weeks informs the seller or the agent assisting the seller that the agreed upon amount is not sufficient.

Your buyer is not interested in pursuing this home any further and asks for an immediate release of their escrow deposit. Here is where it gets confusing for some agents. In order for the buyer to receive their escrow deposit back they must get the owner of the home to sign a cancellation of contract and release of escrow form which the buyer will also sign.

Without the mutually signed agreement most Brokers will not release the escrow deposit to either party.

Just remember, if a buyer and seller have both agreed on terms in writing, this is a binding contract. Most contracts have some type of contingency but it is still a contract nonetheless.

Related Florida real estate views:

Real estate agents would be wise to pick short sales over long sales.

Battle of the short sale: Just say no

Short sales may be an option to some homeowners


- Greg Staker - Watson Realty Corp. - 407-304-0255