If after talking with the bank on a short sale and they except your offer. Does the bank issue you a letter of their exceptance so that you obtain financing. I understand how the shhort sale works but i did not know if they isssue you a letter.
Yes they will first give you a verbal then a letter!! This process can take a few days to a week depending on the bank! I always just tell them to send it to the title company/closing attorneys office!
If the lender agrees on a short sale. Do they notify the homeowner first and then me? Or me, since I submitted request? If the homeowner knows, what will stop him from selling for more to another investor?
Hi Virtual,
From what I understand of the process, they will notify whoever they are dealing with, in this case you. If you gave them your fax #, they will fax it to you or send it to your address.
The homeowner can’t sell for more cuz according to the rules, he technically cannot get any money out of the short sale. You need to reinforce the fact that you are saving their credit by getting that ‘millstone’ off their necks. If I missed anything guys, feel free to correct me.
Florida newbie investor.
Steve
Don’t do what I did one time, when the lender tells you on the phone that they will “accept” your offer, don’t take their word for it verbally. They can say one thing and mean another. It happens.
Ask them to fax you a confirmation that the offer was accepted. It’s all about having it in writing. You’ll have it in writing that they are willing to accept your final offer and you have that for proof that the offer was accepted for this final amount.
Hope this helps
If the short sale was agreed on the phone, then it needs to be put on paper identifying who is paying for what closing cost and the current homeowner has to write a letter to the bank allowing permission for the bank to even speak to you… Also check to see if there are any outstanding liens on the property and if the bank is willing to pay for any closing cost at all…The current home owner has to sign a paper allowing the bank to release any information…maybe you have already done this…there is so much…there are occasions where the remaining amount of the outstanding loan still follows the current homeowner…so if you are buying for less than the amount owed then be careful about suggesting to the current homeowner you are saving his neck…if you are not working with a realtor than iwould seek legal advice as per your state …if you are buying to flip…find out how long you have to wait before selling it again…