Short Sale Question

[Aubrey]

So, does a property HAVE to have been listed in order to do a SS or just be late on payments?

Also, do you have the owners sign the contract first and then call the bank to negotiate? Or do you talk to the bank and once the bank agrees, then have the owners sign?

I’m assuming if the owners sign first I put in some type of contingency like, “Sale contingent on buyers ability to negotiate purchase price of xxx with the bank.”???

Is that right?

[rgchamb]

I have the owners sign the contract 1st. Countrywide requires a listing agreement. Sometimes Wells Fargo does, but some (including me) have gotten around before.

Every lender will require a clause something to the effect of the contract being subject to the mortgage holder approving the short sale. I typically include a clause allowing access for contractors, partners, inspectors, etc. prior to closing.