i’m doing a short sale and lender is very against extending foreclosure date. the deal has been approved, it’s an all cash offer and lender has given us 10 days to close because they say they do not want to extend the sale date.
I’d like to know why are they acting this way? what is their penalty or fees if any to extend the date.
or are they just bluffing?
Hi,
First thing in a foreclosure is the lender is losing (x) number of dollars daily.
When there is a change of months the exceptable loss matrix changes and the loan committee looks at what is exceptable loss for said property.
The cost to extend the closing is probable hundreds of dollars as it means a re-scheduling and posting of the property sale. It’s probable not huge mind you but all together the lender feels if they are going out of there way to approve the sale, they want it off there books now.
Ten days is plenty of time to close the deal, just get it done and don’t push the lender to find out if they really would extend it or not?
You have to remember the lender is the one taking a loss and it’s up to us as investors to be sensitive of there time and close as quick as possible.
Good luck,
GR
Thank you for your explanation. I figured dollar wise they’re not really saving much; but like you said, they want it off their books and extending it more, creates more risk. Anyways, we’re in line to close on time. Thank you.